How to invest like … Hetty Green, the world’s richest woman

Hetty Green in 1907

Hetty Green in 1907. As a young woman her father bought her a wardrobe full of the finest dresses in order to attract a wealthy suitor. But she sold the clothes and invested the proceeds in government bonds.

 

Hetty Green was the first woman to invest on Wall Street. She was also the pioneer of Warren Buffett-style “value investing”.

When she died in 1916 at 81, she had an estimated $100m in cash and owned more than 6,000 assets, including railways, hotels, office buildings, theatres, churches and cemeteries. She was worth almost $200m, making her the richest woman in the world. Today that sum would have the purchasing power of about $4.5bn (£3bn).

By comparison, the estate of JP Morgan, one of America’s most prominent bankers when he died three years earlier, was worth $80m.

Hetty (short for Henrietta) Robinson was brought up by her father  and grandfather, who owned  one of the biggest whaling fleets in America. Her financial education started at the age of six, when she read the financial news to her grandfather and talked it over with him. By the age of 13, she had taken over accounting for the family business.

For her 20th birthday her father endowed her with a wardrobe full of the finest dresses of the season worth $1,200 in order to attract a wealthy suitor. But her reaction to the gift demonstrated her priorities: she sold the clothes and invested the proceeds in government bonds.

 

There is no great secret in fortune-making … All you do is buy cheap and sell dear, act with thrift and shrewdness and be persistent.
– Hetty Green

 

However, she started to invest seriously when she inherited an estimated $7m after her father’s death in 1865, when she was 31. This inheritance consisted of $1m outright, with the rest in a trust (managed, inevitably, by a man) from which she could draw money annually. She obtained a further $600,000 following the death of an aunt after a legal battle.

A couple of years later she married a banker and business associate of her father, Edward Green. She insisted on a prenuptial agreement to keep their finances separate. The couple moved to London  to avoid further legal troubles. While in England, she had two children;  they returned to the US seven years later.

Although Green inherited a substantial fortune, it was her subsequent investment strategy that made her the richest woman in the world.  She had a preference for conservative and long-term investments, substantial cash reserves and a cool head in a crisis. She researched companies thoroughly  and only when she was convinced of their value  did she buy or sell.

“There is no great secret in fortune-making … All you do is buy cheap and sell dear, act with thrift and shrewdness and be persistent,” she said. This will sound familiar to present-day fans of Warren Buffett.

“Hetty Green was the female Warren Buffett of her time,” wrote Janet Wallach in The Richest Woman in America: Hetty Green in the Gilded Age. “Like Buffett, she believed that financial crises presented a great opportunity for investors.”

Initially, Green used  her father’s inheritance to invest in “greenbacks” – notes printed to finance the Civil War. Timid investors were wary of these notes, issued by a still-recovering government, but Green bought boldly. She claimed to have made $1.25m from them in a year.

 

 Men work between a barge canal and railroad tracks, shoveling dirt at the Glydon Construction Camp, Minnesota
Men work between a barge canal and railroad tracks, shoveling dirt at the Glydon Construction Camp, Minnesota.

 

But she usually concentrated on hard assets, buying cheap, rarely selling and reinvesting income to compound returns. She invested primarily in railways, some railway bonds, real estate and mortgages. Railways came with  acres of land grants and mineral rights. She went where the growth was, investing in boom towns and major railheads such as Denver, St Louis and Cincinnati.

At the time of her death she owned 6,000 properties in 48 states. Among railways, hotels and office buildings she also owned cemeteries, mortgages to nearly 600 churches and almost every major crossroads in the land. She bought shrewdly on the outskirts and waited for the city to come to her.

Her interest in railways was mirrored recently by Mr Buffett. In 2009 he took control of the Burlington Northern Santa Fe railroad company for $26bn – the biggest deal in the history of his company, Berkshire Hathaway. Mr Buffett said the firm was a good asset for Berkshire to hold over the next century.

But Mr Buffett and Green also agree on the merits of substantial cash reserves. Mr Buffett said in 2015 that Berkshire Hathaway would never hold less than $20bn in cash, while Green always kept between $20m and $40m.

 

A Burlington Northern Santa Fe (BNSF) train car sits in a depot in Ft Worth, Texas
A Burlington Northern Santa Fe (BNSF) train car sits in a depot in Ft Worth, Texas.

 

In the financial panics of 1873, 1893 and 1907 she  bought up bonds, shares and real estate at deep discounts. When everyone was rushing out of the market, Green bought in.

Barry Glassman, president of Glassman Wealth Services, a US financial planning firm, said all investors could learn from her.  “[One of her lessons] is to do the opposite of what the crowd does,” he wrote in 2013. “Hetty waited many times for panic to ensue, for investors and business owners to be forced to sell, then stepped in with cash to scoop up the bargains.”

Green was not a believer in the “buy and hold” approach, however. “I never buy anything just to hold it. There is a price on everything I have,” she said. “When that price is offered, I sell.”

 

Wall Street in the late 19th century
Wall Street in the late 19th century.

 

She made her boldest move in 1907. Sensing the market was overvalued, she sold many shares and bonds and called in all her loans. When the “Panic of 1907” broke, she bought assets sold by firms on the brink of bankruptcy and profited from reorganisations and distressed investments.

She was a lender in JP Morgan’s emergency operation to save the banks in the Panic of 1907 with a cheque for $1.1m. For payment, she took short-term municipal bonds with high interest (5.5pc).

She said: “When the crash came, I had the money, and I was one of the very few who really had it. The others had their securities and their values. I had the cash and they had to come to me in droves.”

She did not take part in Wall Street’s “bear raids” – attempts by unscrupulous speculators to force the price of shares or other assets down – in the 1800s. When speculators tried bear raids on her, Green bought all outstanding stock and cornered whole sectors. She extracted a high price from speculators before allowing them to close their positions.

Green’s only liability was her husband.  When railroad bonds fell in 1884, the biggest investors in a major Wall Street bank, John J Cisco & Sons, defaulted – and they included Edward Green.

Hetty’s assets at the bank amounted to more than $500,000 in cash and more than $26m in bonds, mortgages and other securities. The bank used Edward’s wife’s assets as collateral. When Hetty refused to cover his debts and tried to move her assets to another bank, Cisco froze them.

After two weeks of fierce negotiations, she handed over $400,000 to cover his debts and the bank claimed half of her cash balance. She moved her assets to Chemical National Bank – and effectively ended the marriage.

 

John, David and Alexandra have worked on Wall Street for a combined 35 years, trading for huge firms like (now defunct) Lehman Brothers and Goldman Sachs trading the markets on behalf of high net worth individuals. After thousands of trades and hundreds of trading accounts, they are here to share the fruit of their work and knowledge with other traders. The trio divide their time between New York and London.

498 thoughts on “How to invest like … Hetty Green, the world’s richest woman

  1. Hi there! Would you mind if I share your blog with my twitter group? There’s a lot of people that I think would really enjoy your content. Please let me know. Cheers

  2. One other issue is when you are in a predicament where you don’t have a co-signer then you may really need to try to make use of all of your school funding options. You could find many funds and other grants that will provide you with funding to aid with education expenses. Thank you for the post.

  3. I used to be recommended this web site by means of my cousin. I am no longer certain whether this post is written via him as nobody else realize such certain approximately my difficulty. You are incredible! Thank you!

  4. Thanks for your article. I would also love to say a health insurance specialist also works well with the benefit of the coordinators of a group insurance cover. The health insurance broker is given a long list of benefits needed by somebody or a group coordinator. Exactly what a broker does is try to find individuals and also coordinators which will best fit those demands. Then he presents his recommendations and if both sides agree, the broker formulates a legal contract between the two parties.

  5. I love your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to create my own blog and would like to know where u got this from. thanks

  6. Untuk mereka yang ingin menguruskan badan tanpa diet, pola hidup sehat melalui olahraga teratur, tidur yang cukup, makan seimbang, hingga teknik mindfulness bisa menjadi solusi. Jangan lupakan juga faktor stres dan pentingnya hidrasi. Akar rambut yang kuat adalah kunci untuk mencegah kerontokan, dan ini bisa didukung dengan cara alami seperti menggunakan ramuan tradisional, minyak zaitun, makanan yang kaya nutrisi, pijat kepala, dan juga memperhatikan kebiasaan sehari-hari seperti penggunaan cat rambut.

  7. Hi!
    п»їInvest in binary options and watch your profits soar! With a simple and easy-to-understand platform, even novice traders can experience the thrill of financial success. Choose from a variety of assets, set your desired return, and sit back as the market works in your favor. With limited risk and high reward potential, binary options offer the perfect opportunity to grow your wealth. Start your trading journey today and see your portfolio reach new heights.

    Earn every minute without limit of $100, $500, $1,000, with a minimum bet of $1.
    Instant withdrawal!!!

    WARNING! If you are trying to access the site from the following countries, you need to enable VPN which does not apply to the following countries!
    Australia, Canada, USA, Japan, UK, EU (all countries), Israel, Russia, Iran, Iraq, Korea, Central African Republic, Congo, Cote d’Ivoire, Eritrea, Ethiopia, Lebanon, Liberia, Libya, Mali, Mauritius, Myanmar, New Zealand, Saint Vincent and the Grenadines, Somalia, Sudan, Syria, Vanuatu, Yemen, Zimbabwe.
    Sign up and start earning from the first minute!
    https://trkmad.com/101773

  8. I was more than happy to find this internet-site.I wanted to thanks in your time for this wonderful read!! I positively having fun with each little little bit of it and I’ve you bookmarked to check out new stuff you blog post.

  9. FTE – Forex Trade Signals

    Hello guys! Nice Article! Please Read!
    Если вам нужно купить что-то, то посещение оригинального веб-сайта MEGA будет правильным решением. У нас вы найдете все, что вам нужно, и сможете совершать покупки с полной уверенностью в безопасности и анонимности. Присоединяйтесь к нашей платформе уже сейчас и наслаждайтесь широким выбором товаров. Официальный веб-сайт Мега доступен по адресу: https://xn--meg-sb-yc8b.com. Для его посещения не требуется подключение к Tor или VPN. Просто перейдите на наш маркет и окунитесь в огромный магазин с безграничными возможностями. Не упускайте время и исследуйте новый мир, который ждет вас на Меге.

  10. A powerful share, I just given this onto a colleague who was doing slightly analysis on this. And he in fact purchased me breakfast as a result of I found it for him.. smile. So let me reword that: Thnx for the deal with! But yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying more on this topic. If possible, as you change into expertise, would you thoughts updating your weblog with extra particulars? It’s highly useful for me. Massive thumb up for this weblog put up!

  11. One thing I would really like to discuss is that weightloss program fast is possible by the right diet and exercise. People’s size not only affects appearance, but also the quality of life. Self-esteem, depression, health risks, and also physical abilities are affected in an increase in weight. It is possible to do everything right and still gain. If this happens, a medical problem may be the offender. While a lot of food and never enough workout are usually to blame, common medical conditions and traditionally used prescriptions might greatly add to size. Thanks for your post in this article.

  12. Hi, Neat post. There is a problem with your site in internet explorer, would check this?IE still is the market leader and a big portion of people will miss your great writing due to this problem.

  13. you’re really a good webmaster. The website loading speed is incredible. It seems that you are doing any unique trick. Furthermore, The contents are masterpiece. you have done a great job on this topic!

  14. I have noticed that clever real estate agents all over the place are getting set to FSBO Marketing. They are knowing that it’s more than merely placing a poster in the front property. It’s really regarding building human relationships with these traders who at some point will become buyers. So, once you give your time and efforts to aiding these vendors go it alone – the “Law of Reciprocity” kicks in. Good blog post.

  15. Do you mind if I quote a couple of your articles as long as I provide credit and sources back to your website? My website is in the exact same niche as yours and my users would certainly benefit from some of the information you provide here. Please let me know if this okay with you. Many thanks!

  16. Hi there, I found your blog via Google while searching for a related topic, your web site came up, it looks good. I’ve bookmarked it in my google bookmarks.

  17. 4d Lotto – Join lotto 4d and bet 4d online with ease! We offer all popular 4D betting in Malaysia such as 9 Lotto, Sports Toto, Magnum, Damacai, GD Lotto, STC4D, Sabah88, Sarawak Cash Sweep betting online anywhere anytime. Buy 4d online Now!

  18. Wow that was odd. I just wrote an really long comment but after I clicked submit my comment didn’t show up. Grrrr… well I’m not writing all that over again. Anyhow, just wanted to say excellent blog!

  19. It抯 really a cool and helpful piece of information. I am glad that you shared this useful information with us. Please keep us informed like this. Thanks for sharing.

  20. hey there and thank you on your information ?I have definitely picked up anything new from right here. I did then again expertise some technical issues the use of this site, as I experienced to reload the website many occasions previous to I may get it to load correctly. I had been brooding about if your web hosting is OK? Now not that I am complaining, but sluggish loading cases times will often affect your placement in google and can harm your high-quality rating if ads and ***********|advertising|advertising|advertising and *********** with Adwords. Anyway I抦 including this RSS to my email and can look out for a lot more of your respective exciting content. Make sure you update this once more soon..

  21. What I have seen in terms of computer memory is there are requirements such as SDRAM, DDR and the like, that must fit in with the features of the motherboard. If the personal computer’s motherboard is kind of current and there are no operating-system issues, changing the memory space literally requires under one hour. It’s among the easiest pc upgrade types of procedures one can consider. Thanks for discussing your ideas.

  22. Hi there I am so thrilled I found your website, I really found you by mistake, while I was searching on Yahoo for something else, Anyways I am here now and would just like to say thanks a lot for a fantastic post and a all round exciting blog (I also love the theme/design), I don抰 have time to read it all at the minute but I have book-marked it and also included your RSS feeds, so when I have time I will be back to read a great deal more, Please do keep up the superb job.

  23. I really like your blog.. very nice colors & theme. Did you design this website yourself or did you hire someone to do it for you? Plz answer back as I’m looking to design my own blog and would like to find out where u got this from. appreciate it

  24. Hello There. I found your weblog using msn. This is a really neatly written article. I抣l be sure to bookmark it and come back to read more of your useful information. Thank you for the post. I抣l certainly comeback.

  25. I抦 no longer positive the place you’re getting your information, however good topic. I must spend some time studying more or working out more. Thanks for great info I was looking for this info for my mission.

  26. Today, considering the fast chosen lifestyle that everyone leads, credit cards get this amazing demand throughout the economy. Persons out of every discipline are using the credit card and people who not using the card have prepared to apply for just one. Thanks for expressing your ideas about credit cards.

  27. Быстрый и надежный сервис для скачивания Пари
    2.Получи доступ к новейшим версиям Пари безопасно и просто
    3.Обновите Пари сегодня
    4.Просто и безопасно скачайте инновационное Пари
    5.Находите правильную версию Пари
    6.Доступ к удобному скачиванию Пари для вашего устройства
    7.Надежный способ скачать Пари
    8.Быстро и безболезненно скачать Пари
    9.Найдите вашу версию Пари
    10.Скачайте Пари и воспользуйтесь всеми возможностями ускорения вашей работы
    11.Используйте все возможности Пари и узнайте новые расширения бесплатности
    12.Ускорьте ваши работу, используя все возможности Пари для получения траста
    13.Скачайте бесплатное Пари
    14.Бесплатное Пари для вашего сервиса
    15.Установите Пари за несколько минут и получите доступ ко всем его возможностям
    16.Интуитивная установка Пари
    17.Лучший способ скачать Пари бесплатно
    18.Простой способ скачать Пари
    19.Пройдите шаг за шагом по простой инструк

  28. you’re truly a just right webmaster. The site loading speed is amazing. It sort of feels that you are doing any unique trick. Furthermore, The contents are masterpiece. you have done a magnificent process on this matter!

  29. |
    Incredible Properties |
    |
    |
    |
    Exceptional Residences |
    Custom Homes |
    Unique Listings |
    Elite Properties |
    Prime Bali Real Estate |
    |
    |
    Find your Perfect Home |
    Bali Real Estate for Sale |
    |
    |
    Stunning Properties |
    |
    Beautiful Homes for Sale |
    The Best of Bali Real Estate |
    Bali Real Estate }

  30. I have been surfing online more than three hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my opinion, if all site owners and bloggers made good content as you did, the web will be a lot more useful than ever before.

  31. Присоединяйтесь к восхождению в игре Авиатор
    2. Превратитесь в настоящего авиатора в игре Авиатор
    3. Покоряйте небо в игре Авиатор
    4. Пролетайте над горизонтом в игре Авиатор
    5. Детальное исследование вселенной игры Авиатор
    6. Откройте для себя игру Авиатор
    7. Научитесь летать в игре Авиатор
    8. Станьте разведчиком в игре Авиатор
    9. Наслаждайтесь невероятными полетами в игре Авиатор

  32. Bluehost: It is one of the most popular hosting providers, recommended by WordPress. They offer a user-friendly interface, excellent uptime, and 24/7 customer support.
    HostGator: HostGator is known for its affordable plans and reliable performance. They offer unlimited storage and bandwidth, a variety of hosting options, and excellent customer support. http://webward.pw/.

  33. I wanted to compose a brief comment so as to say thanks to you for these magnificent hints you are placing here. My extended internet investigation has at the end of the day been honored with incredibly good points to share with my family and friends. I ‘d believe that we readers are quite blessed to dwell in a fantastic place with many special people with very helpful methods. I feel rather happy to have encountered the webpages and look forward to some more pleasurable moments reading here. Thanks a lot once again for everything.

  34. Thanks for the strategies you discuss through this website. In addition, numerous young women which become pregnant will not even try and get health insurance coverage because they have anxiety they might not qualify. Although a lot of states currently require that insurers give coverage in spite of the pre-existing conditions. Prices on these guaranteed programs are usually higher, but when taking into consideration the high cost of health care it may be a safer approach to take to protect the financial potential.

  35. Great weblog here! Additionally your web site so much up fast! What host are you using? Can I get your associate link on your host? I wish my web site loaded up as quickly as yours lol

  36. Enjoy Real Money Gambling with Us!
    2. Play in the Best Online Casino Canada
    3. Try Your Luck Now!
    4. Get Started Now!
    5. Test Your Luck in the Best Online Casino Canada
    6. Try the Best Online Casino Canada
    7. Bet Now!
    8. Play Now!
    9. Explore the World of Online Gambling with Canada’s Best Casino
    10. Try Your Luck Now!
    11. Sign Up Now!
    12. Enjoy the Fun Now!
    13. Play Now!
    14. Get Started Now!
    15. Unlock Bonuses and Rewards with the Best Online Casino Canada
    16. Enjoy the Best Online Casino Canada
    17. Join Today!
    18. Play Now!
    19. Take Your Chance Now!
    20. Sign Up Now!

  37. Discover the Best Online Casino Canada
    2. Win Real Money Now!
    3. Experience the Thrill of the Best Online Casino Canada
    4. Win Big with the Top Online Casino Canada
    5. Join Now!
    6. Try the Best Online Casino Canada
    7. Enjoy Exciting Gambling with the Best Online Casino Canada
    8. Unlock the Rewards of the Best Online Casino Canada
    9. Explore the World of Online Gambling with Canada’s Best Casino
    10. Feel the Thrill of the Best Online Casino Canada
    11. Make Real Money Playing the Best Online Casino Canada
    12. Enjoy the Fun Now!
    13. Boost Your Bankroll at the Best Online Casino Canada
    14. Get Started Now!
    15. Unlock Bonuses and Rewards with the Best Online Casino Canada
    16. Enjoy the Best Online Casino Canada
    17. Join Today!
    18. Play Now!
    19. Win Real Money at the Best Online Casino Canada
    20. Sign Up Now!

  38. Hello! This is kind of off topic but I need some advice from an established blog. Is it very difficult to set up your own blog? I’m not very techincal but I can figure things out pretty quick. I’m thinking about setting up my own but I’m not sure where to start. Do you have any points or suggestions? Cheers

  39. One more important aspect is that if you are a senior, travel insurance regarding pensioners is something you must really think about. The older you are, the more at risk you are for getting something terrible happen to you while in most foreign countries. If you are not really covered by a number of comprehensive insurance policy, you could have some serious issues. Thanks for sharing your suggestions on this blog site.

  40. I抳e learn a few excellent stuff here. Certainly price bookmarking for revisiting. I wonder how so much effort you place to make one of these wonderful informative website.

  41. Thanks a bunch for sharing this with all of us you actually know what you are talking about! Bookmarked. Kindly also visit my site =). We could have a link exchange contract between us!

  42. Greetings. I know this is somewhat off-topic, but I was wondering if you knew where I could get a captcha plugin for my comment form? I’m using the same blog platform like yours, and I’m having difficulty finding one? Thanks a lot.

  43. I have noticed that repairing credit activity needs to be conducted with tactics. If not, you are going to find yourself destroying your rank. In order to realize your aspirations in fixing your credit rating you have to make sure that from this time you pay any monthly dues promptly prior to their appointed date. It is really significant simply because by definitely not accomplishing that, all other measures that you will decide to use to improve your credit standing will not be useful. Thanks for discussing your concepts.

  44. Greetings I am so thrilled I found your site, I
    really found you by error, while I was browsing on Google
    for something else, Nonetheless I am here now and would just like
    to say kudos for a remarkable post and a all round interesting blog (I
    also love the theme/design), I don’t have time to look over it
    all at the minute but I have book-marked it and also
    added your RSS feeds, so when I have time I will be back to read
    a great deal more, Please do keep up the awesome work.
    powered by GoToTop.ee
    https://ru.gototop.ee/

  45. Thanks for your strategies. One thing really noticed is that banks in addition to financial institutions know the dimensions and spending routines of consumers plus understand that most of the people max out there their own credit cards around the holidays. They prudently take advantage of this fact and then start flooding your inbox plus snail-mail box with hundreds of no interest APR credit cards offers right after the holiday season ends. Knowing that in case you are like 98 in the American general public, you’ll get at the possiblity to consolidate personal credit card debt and switch balances towards 0 annual percentage rates credit cards.

  46. Just desire to say your article is as surprising. The clarity in your post is simply great and i could assume you are an expert on this subject. Fine with your permission allow me to grab your feed to keep up to date with forthcoming post. Thanks a million and please carry on the rewarding work.

  47. Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

  48. Hello there, simply turned into alert to your weblog thru Google, and located that it is truly informative. I’m gonna be careful for brussels. I will be grateful should you continue this in future. Lots of other folks shall be benefited out of your writing. Cheers!

  49. I’ve been surfing online more than 4 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. In my view, if all webmasters and bloggers made good content as you did, the web will be a lot more useful than ever before.

  50. Hey there! I could have sworn I’ve been to this site before but after checking through some of the post I realized it’s new to me. Anyways, I’m definitely happy I found it and I’ll be book-marking and checking back frequently!

  51. Оптимальное решение для перевода технических текстов с английского на другие языки
    технический перевод текстов на русский язык b2bperevod11.ru.

  52. Ваша безопасность – наша забота: магазин знаков безопасности предлагает широкий ассортимент товаров
    предупреждающие плакаты по электробезопасности http://ets-diesel.ru/.

  53. Чтобы правильно произвести раздел имущества необходимо обратиться в компанию Зайцев и партнеры раздел имущества супруги оказывает профессиональные юридические услуги для людей и организаций.

  54. Основным направлением работы отделения является восстановительно-реконструктивно-пластические операции в области головы – шеи http://neuro-med.ru/partners.htm

  55. Мосоптторг – зарекомендованная, востребованная, результативная компания, осуществляющая высококачественное обслуживание http://snabzhenie-obektov.ru/ для обеспечения материалами, применяемыми в строительстве.

Leave a Reply

Your email address will not be published. Required fields are marked *