Baruch: My Own Story

by Bernard M. Baruch

Baruch: My Own Story is the memoirs of Bernard M. Baruch, a man whose life spanned the late nineteenth century and over half of the twentieth century. Given the time period, he is a man who has seen much having met seven presidents, witnessing two wars and working on Wall Street for a time. In these memoirs, Baruch has tried to set forth the philosophy through which he had sought to harmonize a readiness to risk something new with precautions against repeating the errors of the past.

Genres: Biography, Finance, Business, History, Economics, Memoir, Nonfiction

337 pages, Hardcover

First published February 1, 1993

About the author

Bernard Mannes Baruch, the "Park Bench Statesman," made his fortune on Wall Street, but his greatest challenge and his greatest satisfaction were his service to his country as an economic adviser during both World Wars I and II and as a confidante to six presidents.

Bernard Mannes Baruch was born August 19, 1870, in Camden, the son of Simon and Isabelle Wolfe Baruch. His father was a German immigrant who came to America in 1855 to avoid Prussian conscription. He was 15 years old and knew only one person in America, Mannes Baum, the owner of a general store in Camden, who was married to an aunt of Baruch's mother.

Young Simon Baruch worked for Baum as a bookkeeper and, with Baum's help, taught himself English. Mrs. Baum persuaded her husband to send Simon to South Carolina Medical College and the Medical College of Virginia in Richmond.

He became a renowned surgeon chief on Robert E. Lee's staff during the Civil War. It was Mannes Baum who gave Simon the uniform and sword he wore when he joined the Third Battalion, South Carolina Infantry, in 1862.

Bernard's mother, Isabelle, was the daughter of Sailing Wolfe, a young merchant and planter of Winnsboro, and Sara Cohen, daughter of Rabbi Hartwig Cohen of Charleston. Baruch's family moved to New York when he was about 10 years old. While his remarkable accomplishments came in New York, Washington, and abroad, his roots were always in South Carolina. Seventy years after he went to New York, he still had not relinquished a trace of his Southern accent.

Baruch graduated from City College of New York in 1889, and his first job was as an office boy earning $3 a week. He ran errands in the banking and financial district and became enamored of the potential Wall Street held. He became a runner for a brokerage house and invested all his effort and time in learning the business, eventually becoming a broker and then a partner in the firm of A. A. Housman and Company. His earnings and commissions afforded him the opportunity to buy a seat on the New York Stock Exchange, and by the time he was 30 years old, he had become a millionaire.

Baruch left Housman to open Baruch Brothers, in partnership with one of his brothers, Hartwig "Harty" Baruch. In succeeding years he lost his fortune and made it back several times.
In 1907, he and Harty bought H. Hentz and Company, an international commodity firm with offices on Wall Street and in Paris, London, Berlin, and other cities. By 1910, Bernard Baruch had become one of Wall Street's financial leaders.

When Woodrow Wilson was re-elected president and war was looming, he called on Baruch for advice because of the latter's understanding of the nation's economy and industrial resources. Baruch was chairman of the War Industries Board, which controlled the industrial establishment of the country for three years. With the end of the war imminent, he helped President Wilson negotiate the peace agreements in Paris.

When Baruch joined Woodrow Wilson's War Industries Board, he had left H. Hentz and Company to speculate on his own. His two other brothers, Sailing and Herman, joined H. Hentz and Company as managing partners. Herman Baruch, a doctor and banker, later became ambassador to Portugal and Holland.

After World War I, Baruch continued as an adviser to Presidents Harding, Coolidge, Hoover, Roosevelt, and Truman. He often conferred with officials on a bench in Washington's Lafayette Park because of the privacy and relaxed atmosphere. Thus, he became known as the "Park Bench Statesman."

In 1905, he had bought Hobcaw Barony, a 17,000-acre plantation about three miles by water from Georgetown in South Carolina. It originally was part of the barony granted Lord Carteret by King George II. Baruch would permit no telephone lines to be strung to Hobcaw. The plantation was his retreat for the hunting season and the month of May each year.

Baruch took great pride in his Souther

Reviews

[Max · Rating 5 out of 5]

Review: My Own Story by Bernard Baruch

Randomly picked this up from a used book store, wondering if this is the Baruch Plan Baruch (it is!). Really impressive how far he got in terms of general wisdom, skill in investing, rationality, good governance, diplomacy, as well as interpersonal skills. Also full of cool anecdotes, from his family background, Wall Street 1890-1910, and from DC politics from the first World War on. Some notes:

Personal Background & Character

I was surprised by how openly he wrote about being a shy mother's boy lol.

"As a child I was shy and sensitive, something of a mamma's boy. I always sat at Mother's right at the dinner table, and i remember how fiercely I fought for this privilege. When I married, I asked my wife to sit where my mother would have sat-with me to her right."

He seemed to have really good memory, which probably was really useful throughout:

"I could rattle off the routes of all the principal railroads in the United States and what commodities and products gave them their main source of revenue. Nor did I have to consult an atlas to know which railroads would be affected by drought in one part of the country or floods in another, by the discovery of some new mine or the opening of some new territory for settlement."

He systematically analyzed his failures to learn from them.

"I began a habit I was never to forsake-of analyzing my losses to determine where I had made my mistakes. This was a practice I was to develop ever more systematically as my operations grew in size. After each major undertaking— and particularly when things had turned sour-I would shake loose from Wall Street and go off to some quiet place where I could review what I had done and where I had gone wrong."

Wall Street and his investment strategy

He was a fairly good sceptic, doing on-the-ground inspections for his important investments (hiring relevant experts to join him), learning about the ins-and-outs of the business, focussing only on the industries he specializes in (mainly railroads, and tobacco and some mining stuff)

"A market without bears would be like a nation without a free press"

Some principles:

"Being so skeptical about the usefulness of advice, I have been reluctant to lay down any "rules" or guidelines on how to invest or speculate wisely. Still, there are a number of things I have learned from my own experience which might be worth listing for those who are able to muster the necessary self-discipline:
- Don't speculate unless you can make it a full-time job.
- Beware of barbers, beauticians, waiters-of anyone-bring-ing gifts of "inside" information or "tips." [Unskilled traders love insider information and massively over index on them]
- Before you buy a security, find out everything you can about the company, its management and competitors, its earnings and possibilities for growth.
- Don't try to buy at the bottom and sell at the top. This can't be done-except by liars."

He wrote up a pretty nerve-wrecking first-person retelling of the short squeeze panic of 1901, where he was fairly centrally involved and could relay a bunch of behind-the-scenes. Financial crises are scary.

He was sceptical about timing the market:

"Some people boast of selling at the top of the market and buying at the bottom—I don't believe this can be done except by latter-day Munchausens. I have bought when things seemed low enough and sold when they seemed high enough. In that way I have managed to avoid being swept along to those wild extremes of market fluctuations which prove so disastrous."

His three specific factors when evaluating companies:

"In evaluating individual companies three main factors should be examined. First, there are the real assets of a company, the cash it has on hand over its indebtedness and what its physical properties are worth. Second, there is the franchise to do business that a company holds, which is another way of saying whether or not it makes something or performs a service that people want or must have. Third, and most important, is the character and brains of management. I'd rather have good management and less money than poor managers with a lot of money."

While he doesn't say this, my impression is that him being a very trustworthy and nice-to-be-around person gave him a lot of access to useful information, advice, capital, access to deals, etc. E.g. this became very apparent through his very close association with the Guggenheim family.

Kinda interesting, Baruch thinks that the counterfactual impact of financial giants like Harrimann and JP Morgan is not very remarkable, the big story is the on-the-ground growth of the US economy. I felt like he was giving too little credit to the role of the finance industry providing credit.

He was also involved in a small group that invested in Congolese rubber companies from King Leopold II's, making more humane treatments of the workers a condition for investing.

It also generally struck me how much of a Wild West Wall Street was back then. While Baruch emphasizes that markets back then already were fairly reasonable, he also writes about e.g. how he individually could calm the market by being a counterparty to panicking sellers. I suspect a bunch of his experience would transfer nicely to prediction markets.
Public Service & War Efforts

His business experience prepped him well for helping during WWI (btw he describes it as just going up to Woodrow Wilson and telling him that he wants to help lol):

"In the decade before World War One, I invested in companies which sought to develop new sources of supply for such varied materials as copper, rubber, iron ore, gold, and sulfur. Always restless by nature, as soon as one of these enterprises reached the dividend-paying stage, I usually got out and searched about for another. The knowledge I acquired through these investments was also to prove of enormous value when Woodrow Wilson named me to the Advisory Commission of the Council of National Defense after the outbreak of World War One."

Calling on businessmen's patriotism went a long way back then.

He was the nitrate tzar in WWI, a stressful experience:

"A committee of munitions manufacturers came to Washington to ask how they were going to get the nitrates which were needed to fill their contracts. I assured them the nitrates would be supplied.
When the meeting broke up, Charles MacDowell, who headed our chemical division, asked me, "Chief, what are you going to do to make good on that promise?"

"I don't know, Mac," I confessed. "But I couldn't let them go out of here thinking the government couldn't do any-thing."

The next few days were among the most trying I ever have experienced. I couldn't sleep or eat. Even when I drank a glass of water my throat choked up. I believe I came as close to giving way to panic as I ever have been in my life. While dressing one morning I looked at my pale, drawn face in the mirror, and said aloud, "Why, you coward. Pull yourself together and act like a man."

What happened next made me wonder whether there wasn't some special Providence looking after me. I forced myself to eat breakfast and went down to my office. I had not been there long when a Naval Intelligence officer came in with several intercepted cables which revealed that the Chilean government had its gold reserve in Germany and had been trying in vain to get the German government to release this gold reserve.

At last I had something to work on."

He bought a gigantic resort in South Carolina, that was amazing for hunting and through this had myriad of highly influential guests, among others Woodrow Wilson stayed there a whole month during WWI.

Rationality in governance

He talks about prioritization and about common sense and thinking carefully through the total of the situation, and gives two examples of notable predictions he made (predicting rapid economic growth after WWII):

"To be able to exercise sound judgment, one must keep the total picture in focus. Our better educators are coming to realize that what is needed is not a familiarity with specialized detail but this ability to see our varied problems as parts of one interrelated whole. Almost nothing in our world stands alone. Everything tends to cut athwart of everything else."

"Mankind has always sought to substitute energy for reason, as if running faster will give one a better sense of direction. Periodically we should stop and ask ourselves if our efforts are focused upon the crux of the problem-the things that must be settled if there is to be a manageable solution-or it we are expending our energies on side issues which cannot yield a decision, no matter what their outcome."

Kinda sad (and noteworthy) that people probably say since forever that schools are bad for teaching children to think:

"Sadly, the dominant trends in education seem to be operating to aggravate this neglect. Instead of teaching young people to think, too many of our schools assume that their task is done if students are kept interested. But information cannot serve as an effective substitute for thinking."

The Law of Distraction:

"How often have we been struck by the petty bickering that people engage in when confronted with the gravest sort of crisis. I doubt that this bickering reflects a lack of awareness of the seriousness of a situation. Rather I think it reflects what might be termed the law of distraction-that when men find themselves baffled and frustrated by some problem, they create some distraction to run after."

International Relations & Peace

Unfortunately this part of his life was supposed to be written up in the second part of his autobiography, which he never finished. But he still gave away some of his thinking in the last few chapters.

He emphasized that alliances must be built on mutual interest.

"Accommodation to mutual needs remains the best basis for all agreements between nations. We have relied too heavily on the formal wording of treaties and have neglected to do what needs to be done to strengthen the structure of mutual interests which alone can support an enduring alliance."

"One cannot buy the friendship of other nations. 'Friends' acquired in such a way are quick to take offense over any-thing. Where there is a true basis of mutual interest, however, nations will make excuses for one another's failings and overlook one another's shortcomings."

Kinda interesting what he thought were the two priorities to prevent WW3:
- Prevent nuclear proliferation
- Prevent German reunification

[Mary]

It is a really good story about this man, how he grew up, what influenced him, the people he met, how he became involved in the financial arena (Wallstreet) during the early 1900's.

[Peter Pactor · Rating 5 out of 5]

This is the third biography of Bernard Baruch that I have read, and it is clearly the best of the three. There was additional information than what was included in the other two books, but there was also information in the other two that wasn't contained in this book.

What I found so enticing about this particular volume was the clear, elucidating manner in which he wrote. He not only presented a variety of information, but also he expressed himself in such a way, that I could hear the man talking. His kindness, humanity and logical thought were expressed both in his words and his tone.

Best of all for me, he offered sound advice for individuals, organizations and nations.

I found the book so interesting and appealing that I had difficulty putting it down. This book, in my opinion, is one that should be read by people of all ages and interests.

[Claudia · Rating 2 out of 5]

This book contains some interesting historical facts and some clear recommendations about the importance of ethical behavior. I learned how sulphur is mined by the Frasch method, how copper mining in Utah began and how to develop from a 19-year-old office boy to a 35-year-old millionaire. The reason this book just didn’t do it for me (It took me 10 months to finally sit down and plow through the second half) was due to my lack of interest in high finance and the ins and outs of stock market trading. I read a review that said to skip the first and last 80 pages if you were reading for information on the stock market. I only enjoyed the first and last 80 pages.

[Ethan J · Rating 2 out of 5]

没细看，有干货的感觉就三四页，其他都是自传性质的回忆录。

[Sy. C · Rating 5 out of 5]

An underrated classic. Baruch understood the importance of knowing not only the facts, but also appreciating how investor psychology will receive, interpret, and interact with, those facts.

[Dianne · Rating 5 out of 5]

I have read this interesting memoir twice. I read about Bernard Baruch in a newspaper article and downloaded the book through Open Library. Bernard Baruch (1870 - 1965) was born in South Carolina. He became a financier on Wall Street, making his fortune eventually but not without losses. He eventually became a consultant to 7 presidents, starting with the War Industries Board during WW1 and, towards the end, with a presentation to the UN on behalf of the US urging the importance of a nuclear arms policy (some things never change). The fascinating part about this book is how Baruch meanders from topic to topic, like his first automobiles, which, on occasion, he shipped to Europe to drive as there were no speed limits. New York’s limit, at that time, was 10 mph. While on Wall Street, he was deeply involved in the railway sector, a major component at the turn of the century. He also describes, in interesting ways, his efforts to help develop the rubber, copper, sugar and coffee industries. He also describes his adventures, efforts and visitors at his beloved second home, Hobcaw, a 17 000 acre former plantation near Pawley’s Island S.C. He comes across as a very modest, honest and astute gentleman, who had seen so much, starting with his father’s role in the Civil War as a physician. He describes big pictures very well, asserting that the role of important countries is to develop a positive, interconnected global strategy. It’s quite amazing how his statements still resound today.

[Salvatore DeRosalia · Rating 5 out of 5]

I recently enrolled at Baruch College in NYC which is what led me to want to learn more about the school's namesake. :"My Own Story" was a great read that flowed well and helped inspired me to be the best version of myself I can be. This was the first book in a two part series written by the great Bernard Baruch. The second is "The Public Years", which I have also read.

It covers his humble beginnings, begin born in the South and then moving to NYC in 1879. Moves onto his schooling at City College, where Baruch College now stands. Covers his speculating/investing days and starts to dip into his public affairs work.

With both of these books (part 1 & 2), it really gives you a good glimpse into how we got to where we are today as a country.

I highly recommend Baruch: My Own Story.

[Lester Nathan · Rating 3 out of 5]

This volume covers the early and middle years of Baruch's life. I learned some interesting stories about the business world of the early 20th century, especially the battles between Edward Harriman and JP Morgan over the major railroad lines.
Baruch's early years and stories about his father were also good sections.
Baruch admits to being a speculator in the stock market which is how he became so wealthy. He also writes about some of his mistakes, but he was able to get past them.
Chapter 21 deals with the American Negro. While Baruch appears to have been very tolerant and unprejudiced, with the passage of more than 65 years, the writing is outdated and which one reason I rate the book 3 stars.

[Payson Hunter · Rating 5 out of 5]

For readers with an interest in finance and markets, this book is #2 on the required reading list immediately behind #1 The Intelligent Investor, and just ahead of #3 Security Analysis.
My favorite quotes from the book:
-"My years in Wall Street and business, in fact, became one long course of education in human nature...I found myself confronted with this same eternal riddle - how to balance the nature of things in this world in which we live with the nature of mankind."

[Harsh Thaker · Rating 5 out of 5]

At one side there are investors but here is a legend in its own right who not only became first among equals among the speculators but due to its character, intelligence and honesty became close confidant of the President’s of the USA. Some of investing thinking can be found in Buffet & Lynch. One of the best books on Wall Street.

[Gerald Greene · Rating 4 out of 5]

Intensely interesting book. He experienced the wild years of little or no oversight from the SEC, but navigated safely with his integrity intact. This is a must read for anyone who has traded stock and has been tempted with the idea of speculating.

[Lee Boyd · Rating 5 out of 5]

Great read!

[JV · Rating 4 out of 5]

Quite good but the last few chapters are very dated - written in 1965.

[Jeremy Lee · Rating 5 out of 5]

Where you came from is not as important as where you’re going.

[Guneet Chatha · Rating 5 out of 5]

“Those who mind , don’t matter and those who matter don’t mind”. A great read on both history and philosophy

[Thomas Grimes · Rating 2 out of 5]

Was slow and didn’t include as much stock trading as I’d hoped.

[Payson Hunter · Rating 5 out of 5]

This is one of the pillars of investment finance and should be read by anyone interested in markets, investing and leadership character. The author was a contemporary of Benjamin Graham who authored "The Intelligent Investor" and mentored Warren Buffett. What sets Graham and Baruch apart is that, although known to each other, Baruch made his money and kept it, while Graham suffered an 80% loss of capital in the decline of the markets that preceded the great depression.
When asked how he made so much money on the stock market, Baruch responded: "I made my money by selling to soon".

[Rosa Ramôa · Rating 4 out of 5]

"A arte de viver está menos em eliminar nossos problemas do que em crescer com eles".
(Bernard M. Baruch)

[Dan · Rating 4 out of 5]

Great autobiography of a true patriotic American filled with the American dream.

[Alan Sheinwald · Rating 5 out of 5]

This is truly a great book.