I have to admit that Hetty: The Genius and Madness of America's First Female Tycoon came a bit out of left field. Once again, the recommendation originated from Talking Billions, although this time it was only a passing mention during one of Bogumil's solo episodes, where he mentioned he was currently reading it. If it's good enough for Bogumil, then it's good enough for me, especially as I've been struggling a little lately to find new reads.
Despite coming across the book almost by chance, I'm glad I did. It's easy enough to find biographies of well-known individuals, but not always those whose stories sit a little further off the beaten path. That being said, given Hetty Green's status as one of the wealthiest people in America during her lifetime, it's perhaps surprising she isn't more widely known.
The book covers Hetty's life from pretty much birth through to death, providing an insight into her early years and, importantly in the context of the wealth she would go on to accumulate, the relatively comfortable inheritance she received from her father's estate, subsequently supplemented by part of her aunt's estate.
The circumstances surrounding her aunt's inheritance occupy a good portion of the first half of the book, and it's far from a straightforward story. Disputes over the estate, competing claims and questions of potential dishonesty add an interesting dimension to what might otherwise have been a relatively uneventful account of someone inheriting a considerable amount of money.
From there, much of the story follows a woman who was frugal almost to a fault. Despite continuing to amass extraordinary wealth, Hetty maintained a remarkably modest lifestyle, becoming almost as famous for her thrift as she was for her financial success. The book includes more than a few entertaining anecdotes about those who found themselves on the receiving end of her reluctance to spend money, even when doing so would have barely registered against her considerable fortune.
Her personal life provides another interesting dimension to the story. Through a complicated relationship with her husband, Hetty maintained her independence when it came to managing her own financial affairs. Her husband demonstrated considerably less sound judgement in his own investments on more than one occasion, which ultimately contributed to a challenging relationship between the two. That said, the impression I took from the book was that, despite their difficulties, there wasn't necessarily any animosity between them.
Perhaps one of the most telling examples of the financial standing Hetty achieved comes during the financial panic of 1907. The fact that she was invited to a meeting convened by J.P. Morgan, a meeting and period I've encountered in other books on financial history, as the only woman in attendance speaks volumes about the influence she had established.
At a time when women faced considerable barriers to participating in the financial world, let alone operating at its highest levels, Hetty had accumulated enough wealth, credibility and influence to find herself among some of the most powerful financiers in America. It's quite an extraordinary achievement when considered in the context of the period.
Whilst this is an entertaining read, and one I found particularly enlightening given my complete lack of knowledge about Hetty Green before picking it up, there's also a familiar investing lesson running throughout the book.
It's another example of the extraordinary power of compounding and how relatively simple principles, applied consistently over long periods, can produce remarkable results. Hetty's circumstances and personality were certainly unusual, but the underlying lessons around patience, discipline and capital preservation remain as relevant today as they were during her lifetime.
Who's It For?
If you're interested in biographies and investing, I think you'll get the most from this book. If biographies are your primary interest, there's still plenty to enjoy, although whether the financial elements sustain your attention throughout will probably come down to personal preference.
For students of history, I think it's equally worthwhile. Regardless of your interest in investing, it's hard not to appreciate the extraordinary position Hetty Green established for herself during a period when a woman achieving that level of financial independence and influence was almost unprecedented.