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Back to #405 How Rockefeller Worked.

Why Did Rockefeller Buy Leases With His Own Money?

David Senra says Rockefeller bought the oil leases with his own money so he would take the loss personally if it went wrong, and the company could repay him if the expenditure turned out profitable. He settled disputes with partners by putting all the risk and the blame on himself.

The fight was over continuing to buy oil leases. Rockefeller was aggressive and pushing to buy more. His partner Pratt thought it was smarter to wait. After going back and forth a few times, Rockefeller offered to use his own money. He would take $3 million, a ton of money at the time, and buy the leases. If the expenditure turned out to be profitable, the company could repay him. If it went wrong, he would take the loss personally. Pratt then agreed they would go in together, since Pratt could take the risk if Rockefeller could.

Grokipedia·Rockefeller·David Senra

Transcript

#405 How Rockefeller Worked ·

Founders

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  1. What Did Rockefeller Learn as a Teenager?David Senra says Rockefeller learned as a teenager that all is not how it seems on the outside, and he carried that belief through his entire career.
  2. Why Did It Cost More to Ship Oil Than to Refine It?David Senra says it cost more to ship a barrel of oil than to refine it.
  3. Was Rockefeller's Calm Face a Mask?David Senra says the calm face Rockefeller showed the world was a mask.
  4. How Did Rockefeller Buy Crude at the Bottom?David Senra says Rockefeller bought crude in large lots as the price was bottoming out, and he treated that timing as a central part of how the refinery made…
  5. Why Did Rockefeller Keep a Fortress of Cash?David Senra says Rockefeller led the strategy as the business organized into an actual corporation so it could issue stock.
  6. How Did Rockefeller Turn Competitors Into Partners?David Senra says Rockefeller turned competitors into partners by aligning interests, because men have not made a success of a concern they were forced or…
  7. What Did Rockefeller Want as His Power Grew?David Senra says as Rockefeller's power grows, he is no longer aiming for order. He wants a monopoly.
  8. Why Did Rockefeller Start Paying the Railroads?David Senra says Rockefeller was willing to change his mind when the facts changed and started paying the railroads.

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