The founder of FedEx turned $5000 into $64 Billion.
Here's the insane story of how he did it:
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Here's the insane story of how he did it:
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The man who founded FedEx was Frederick Wallace Smith.
He struggled as a child and was afflicted with a type of disease called Perthes disease.
It affected his hips and affected his ability to walk.
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He struggled as a child and was afflicted with a type of disease called Perthes disease.
It affected his hips and affected his ability to walk.
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In his early years, he used leg braces and crutches to get around.
Fred was bullied as a child due to his condition.
However, he overcame his condition and was able walk on his 10th birthday.
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Fred was bullied as a child due to his condition.
However, he overcame his condition and was able walk on his 10th birthday.
3/20
In his junior year, he wrote a term paper proposing a business idea.
He wanted to revolutionize the way goods were transported.
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He wanted to revolutionize the way goods were transported.
4/20
At the time, packages were shipped throughout the US in cargo holds of commercial airliners.
Delivery schedules were at the mercy of passenger airlines.
Package delivery time were slow.
Fred had an idea...
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Delivery schedules were at the mercy of passenger airlines.
Package delivery time were slow.
Fred had an idea...
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He wanted to buy a fleet of jets and fly the goods in the middle of the night when the airport was less crowded.
Sort the packages in a central hub and deliver the packages from there by truck.
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Sort the packages in a central hub and deliver the packages from there by truck.
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Fred believed in carrying small high-priority packages and delivering them in 1 or 2 days.
This is what we deem as a courier service today.
He submitted this idea in his college paper however, he was told that the idea was not feasible.
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This is what we deem as a courier service today.
He submitted this idea in his college paper however, he was told that the idea was not feasible.
7/20
Fred graduated from Yale in 1966, and the Vietnam War was ongoing.
Fred's flying experience led him to three years in the U.S. Marine Corps.
He did not give up on his idea.
Instead, he paid close attention to how military handled both sending and received goods.
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Fred's flying experience led him to three years in the U.S. Marine Corps.
He did not give up on his idea.
Instead, he paid close attention to how military handled both sending and received goods.
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At age 26, Fred began working at his father-in-lawβs business called Arkansas Aviation Sales.
The business was originally an aviation servicing and repair company.
Fred helped transform it into an aircraft dealership, significantly increasing company profits.
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The business was originally an aviation servicing and repair company.
Fred helped transform it into an aircraft dealership, significantly increasing company profits.
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Again, Fred was frustrated with how slow shipping parts were taking to deliver.
He began planning out a system that is more efficient.
Concluded that he needed 14 jets to begin his full operation.
Fred began to pitch the idea to investors...
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He began planning out a system that is more efficient.
Concluded that he needed 14 jets to begin his full operation.
Fred began to pitch the idea to investors...
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By 1972, Fred managed to get around 91 million dollars in loans and venture capital funding.
His initial plan was to focus on companies that need to deliver checks urgently.
Back then, it was a long process for companies.
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His initial plan was to focus on companies that need to deliver checks urgently.
Back then, it was a long process for companies.
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Fred contacted The Federal Reserve, Americaβs central banking system.
He was pitching his 24-hour delivery process to them compared to the ten-day turnaround time.
The fed loved the idea and agreed to the deal.
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He was pitching his 24-hour delivery process to them compared to the ten-day turnaround time.
The fed loved the idea and agreed to the deal.
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Fred went ahead and bought a small fleet of lightweight aircraft.
However, the process didn't go smoothly.
The Federal Reserve backed out of the deal last minute.
Fred was stuck.
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However, the process didn't go smoothly.
The Federal Reserve backed out of the deal last minute.
Fred was stuck.
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Fred turned his attention to shipping urgent packages for businesses and consumers.
FedEx officially began on 17th April 1973.
On the first night of operation, he had 14 aircraft deliver 186 packages to 25 different US cities.
Until...
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FedEx officially began on 17th April 1973.
On the first night of operation, he had 14 aircraft deliver 186 packages to 25 different US cities.
Until...
14/20
In 1973, there was an oil crisis.
The Middle East had political tensions, and the United States was involved.
The oil embargo and jet fuel was hitting historic high prices.
This led to high operating costs for FedEx, and the company was losing $30,000 per day.
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The Middle East had political tensions, and the United States was involved.
The oil embargo and jet fuel was hitting historic high prices.
This led to high operating costs for FedEx, and the company was losing $30,000 per day.
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Fred has to ask his employees to hold on to their paychecks.
Pilots and drivers were told to use their own credit cards to fuel up and get reimbursed later.
The company was left with the last $5000 in the bank account.
He was desperate...
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Pilots and drivers were told to use their own credit cards to fuel up and get reimbursed later.
The company was left with the last $5000 in the bank account.
He was desperate...
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In the last attempt to save the business, he booked a flight to Las Vegas.
He gambled the $5000 and tried to win some money to pay FedEx bills.
Turned the $5000 into $27000.
It was enough to pay the fuel bill and keep the company afloat for a week.
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He gambled the $5000 and tried to win some money to pay FedEx bills.
Turned the $5000 into $27000.
It was enough to pay the fuel bill and keep the company afloat for a week.
17/20
Fred spoke to more investors and managed to convince some new investors to secure 11 million dollars.
In 1976, FedEx turned profitable.
19,000 parcels per day were being delivered.
They attracted big customers like IBM and even the US air force.
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In 1976, FedEx turned profitable.
19,000 parcels per day were being delivered.
They attracted big customers like IBM and even the US air force.
18/20
FedEx took the company public in 1978 and listed it on the New York Stock Exchange.
In the 90s, they pioneered using computers to track parcels.
Hence, allowing customers to track their deliveries online.
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In the 90s, they pioneered using computers to track parcels.
Hence, allowing customers to track their deliveries online.
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Today, FedEx has over 700 planes in its fleet and is one of the world's largest airlines.
As of 2023, Frederick Wallace Smith has a net worth of 5.9 Billion dollars.
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As of 2023, Frederick Wallace Smith has a net worth of 5.9 Billion dollars.
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And thatβs the end!
Donβt forget to:
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β Retweet this post to share with the world
Have an amazing day! π₯
Donβt forget to:
β Bookmark this thread
β Follow @YounggTeck
β Like the first tweet in the thread
β Retweet this post to share with the world
Have an amazing day! π₯
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