Below is an address to the Students of the Curry Commercial College June 23, 1885 given by Andrew Carnegie:
1.It is well that young men should begin at the beginning and occupy the most subordinate positions. Many of the leading business men of Pittsburg had a serious responsibility thrust upon them at the very threshold of their career. They were introduced to the broom, and spent the first hours of their business lives sweeping out the office. I notice we have janitors and janitresses now in offices, and our young men unfortunately miss that salutary branch of a business education. But if by chance the professional sweeper is absent any morning the boy who has the genius of the future partner in him will not hesitate to try his hand at the broom. The other day a fond fashionable mother in Michigan asked a young man whether he had ever seen a young lady sweep in a room so grandly as her Priscilla. He said no, he never had, and the mother was gratified beyond measure, but then said he, after a pause, “What I should like to see her do is sweep out a room.” It does not hurt the newest comer to sweep out the office if necessary. I was one of those sweepers myself, and who do you suppose were my fellow sweepers? David McCargo, now superintendent of the Alleghany Valley Railroad; Robert Pitcairn, Superintendent of the Pennsylvania Railroad, and Mr. Moreland, City Attorney. We all took turns, two each morning did the sweeping; and now I remember Davie was so proud of his clean white shirt bosom that he used to spread over it an old silk bandana handkerchief which he kept for the purpose, and we other boys thought he was putting on airs. So he was. None of us had a silk handkerchief.
2. Assuming that you have all obtained employment and are fairly started, my advice to you is “aim high.” I would not give a fig for the young man who does not already see himself the partner or the head of an important firm. Do not rest content for a moment in your thoughts as head clerk, or foreman, or general manager in any concern, no matter how extensive. Say each to yourself. “My place is at the top.” Be king in your dreams. Make your vow that you will reach that position, with untarnished reputation, and make no other vow to distract your attention, except the very commendable one that when you are a member of the firm or before that, if you have been promoted two or three times, you will form another partnership with the loveliest of her sex–a partnership to which our new partnership act has no application. The liability there is never limited.
3. Let me indicate two or three conditions essential to success. Do not be afraid that I am going to moralize, or inflict a homily upon you. I speak upon the subject only from the view of a man of the world, desirous of aiding you to become successful business men. You all know that there is no genuine, praiseworthy success in life if you are not honest, truthful, fair-dealing. I assume you are and will remain all these, and also that you are determined to live pure, respectable lives, free from pernicious or equivocal associations with one sex or the other. There is no creditable future for you else. Otherwise your learning and your advantages not only go for naught, but serve to accentuate your failure and your disgrace. I hope you will not take it amiss if I warn you against three of the gravest dangers which will beset you in your upward path.
4. The first and most seductive, and the destroyer of most young men, is the drinking of liquor. I am no temperance lecturer in disguise, but a man who knows and tells you what observation has proved to him, and I say to you that you are more likely to fail in your career from acquiring the habit of drinking liquor than from any, or all, the other temptations likely to assail you. You may yield to almost any other temptation and reform–may brace up, and if not recover lost ground, at least remain in the race and secure and maintain a respectable position. But from the insane thirst for liquor escape is almost impossible. I have known but few exceptions to this rule. First, then, you must not drink liquor to excess. Better if you do not touch it at all–much better; but if this be too hard a rule for you then take your stand firmly here. Resolve never to touch it except at meals. A glass at dinner will not hinder your advance in life or lower your tone; but I implore you hold it inconsistent with the dignity and self-respect of gentlemen, with what is due from yourselves to yourselves, being the men you are, and especially the men you are determined to become, to drink a glass of liquor at a bar. Be far too much of the gentleman ever to enter a barroom. You do not pursue your careers in safety unless you stand firmly upon this ground. Adhere to it and you have escaped danger from the deadliest of your foes.
5. The next greatest danger to a young business man in this community I believe to be that of speculation. When I was a telegraph operator here we had no Exchanges in the City, but the men or firms who speculated upon the Eastern Exchanges were necessarily known to the operators. They could be counted on the fingers of one hand. These men were not our citizens of first repute: they were regarded with suspicion. I have lived to see all of these speculators irreparably ruined men, bankrupt in money and bankrupt in character. There is scarcely an instance of a man who has made a fortune by speculation and kept it. Gamesters die poor, and there is certainly not an instance of a speculator who has lived a life creditable to himself, or advantageous to the community. The man who grasps the morning paper to see first how his speculative ventures upon the Exchanges are likely to result, unfits himself for the calm consideration and proper solution of business problems, with which he has to deal later in the day, and saps the sources of that persistent and concentrated energy upon which depend the permanent success, and often the very safety, of his main business.
Painting of Andrew Carnegie, Photograph by Scotland 307, CC.
6. The speculator and the business man tread diverging lines. The former depends upon the sudden turn of fortune’s wheel; he is a millionnaire to-day, a bankrupt to-morrow. But the man of business knows that only by years of patient, unremitting attention to affairs can he earn his reward, which is the result, not of chance, but of well-devised means for the attainment of ends. During all these years his is the cheering thought that, by no possibility can he benefit himself without carrying prosperity to others. The speculator on the other hand had better never have lived so far as the good of others or the good of the community is concerned. Hundreds of young men were tempted in this city not long since to gamble in oil, and many were ruined; all were injured whether they lost or won. You may be, nay, you are certain to be similarly tempted; but when so tempted I hope you will remember this advice. Say to the tempter who asks you to risk your small savings, that if ever you decide to speculate you are determined to go to a regular and well-conducted house where they cheat fair. You can get fair play and about an equal chance upon the red and black in such a place; upon the Exchange you have neither. You might as well try your luck with the three-card-monte man. There is another point involved in speculation. Nothing is more essential to young business men than untarnished credit, credit begotten of confidence in their prudence, principles and stability of character. Well, believe me, nothing kills credit sooner in any Bank Board than the knowledge that either firms or men engage in speculation. It matters not a whit whether gains or losses be the temporary result of these operations. The moment a man is known to speculate, his credit is impaired, and soon thereafter it is gone. How can a man be credited whose resources may be swept away in one hour by a panic among gamesters? Who can tell how he stands among them? except that this is certain: he has given due notice that he may stand to lose all, so that those who credit him have themselves to blame. Resolve to be business men, but speculators never.
7. The third and last danger against which I shall warn you is one which has wrecked many a fair craft which started well and gave promise of a prosperous voyage. It is the perilous habit of indorsing–all the more dangerous, inasmuch as it assails one generally in the garb of friendship. It appeals to your generous instincts, and you say, “How can I refuse to lend my name only, to assist a friend?” It is because there is so much that is true and commendable in that view that the practice is so dangerous. Let me endeavor to put you upon safe honourable grounds in regard to it. I would say to you to make it a rule now, never indorse: but this is too much like never taste wine, or never smoke, or any other of the “nevers.” They generally result in exceptions. You will as business men now and then probably become security for friends. Now, here is the line at which regard for the success of friends should cease and regard for your own honour begins.
8. If you owe anything, all your capital and all your effects are a solemn trust in your hands to be held inviolate for the security of those who have trusted you. Nothing can be done by you with honour which jeopardizes these first claims upon you. When a man in debt indorses for another, it is not his own credit or his own capital he risks, it is that of his own creditors. He violates a trust. Mark you then, never indorse until you have cash means not required for your own debts, and never indorse beyond those means. Before you indorse at all, consider indorsements as gifts, and ask yourselves whether you wish to make the gift to your friend and whether the money is really yours to give and not a trust for your creditors.
9. You are not safe, gentlemen, unless you stand firmly upon this as the only ground which an honest business man can occupy.
10. I beseech you avoid liquor, speculation and indorsement. Do not fail in either, for liquor and speculation are the Scylla and Charybdis of the young man’s business sea, and indorsement his rock ahead.
11. Assuming you are safe in regard to these your gravest dangers, the question now is how to rise from the subordinate position we have imagined you in, through the successive grades to the position for which you are, in my opinion, and, I trust, in your own, evidently intended. I can give you the secret. It lies mainly in this. Instead of the question, “What must I do for my employer?” substitute “What can I do?” Faithful and conscientious discharge of the duties assigned you is all very well, but the verdict in such cases generally is that you perform your present duties so well that you had better continue performing them. Now, young gentlemen, this will not do. It will not do for the coming partners. There must be something beyond this. We make Clerks, Bookkeepers, Treasurers, Bank Tellers of this class, and there they remain to the end of the chapter. The rising man must do something exceptional, and beyond the range of his special department. HE MUST ATTRACT ATTENTION. A shipping clerk, he may do so by discovering in an invoice an error with which he has nothing to do, and which has escaped the attention of the proper party. If a weighing clerk, he may save for the firm by doubting the adjustment of the scales and having them corrected, even if this be the province of the master mechanic. If a messenger boy, even he can lay the seed of promotion by going beyond the letter of his instructions in order to secure the desired reply. There is no service so low and simple, neither any so high, in which the young man of ability and willing disposition cannot readily and almost daily prove himself capable of greater trust and usefulness, and, what is equally important, show his invincible determination to rise.
12. Some day, in your own department, you will be directed to do or say something which you know will prove disadvantageous to the interest of the firm. Here is your chance. Stand up like a man and say so. Say it boldly, and give your reasons, and thus prove to your employer that, while his thoughts have been engaged upon other matters, you have been studying during hours when perhaps he thought you asleep, how to advance his interests. You may be right or you may be wrong, but in either case you have gained the first condition of success. You have attracted attention. Your employer has found that he has not a mere hireling in his service, but a man; not one who is content to give so many hours of work for so many dollars in return, but one who devotes his spare hours and constant thoughts to the business. Such an employee must perforce be thought of, and thought of kindly and well. It will not be long before his advice is asked in his special branch, and if the advice given be sound, it will soon be asked and taken upon questions of broader bearing. This means partnership; if not with present employers then with others. Your foot, in such a case, is upon the ladder; the amount of climbing done depends entirely upon yourself.
13. One false axiom you will often hear, which I wish to guard you against: “Obey orders if you break owners.” Don’t you do it. This is no rule for you to follow. Always break orders to save owners. There never was a great character who did not sometimes smash the routine regulations and make new ones for himself. The rule is only suitable for such as have no aspirations, and you have not forgotten that you are destined to be owners and to make orders and break orders. Do not hesitate to do it whenever you are sure the interests of your employer will be thereby promoted and when you are so sure of the result that you are willing to take the responsibility. You will never be a partner unless you know the business of your department far better than the owners possibly can. When called to account for your independent action, show him the result of your genius, and tell him that you knew that it would be so; show him how mistaken the orders were. Boss your boss just as soon as you can; try it on early. There is nothing he will like so well if he is the right kind of boss; if he is not, he is not the man for you to remain with–leave him whenever you can, even at a present sacrifice, and find one capable of discerning genius. Our young partners in the Carnegie firm have won their spurs by showing that we did not know half as well what was wanted as they did. Some of them have acted upon occasion with me as if they owned the firm and I was but some airy New Yorker presuming to advise upon what I knew very little about. Well, they are not interfered with much now. They were the true bosses–the very men we were looking for.
14. There is one sure mark of the coming partner, the future millionnaire; his revenues always exceed his expenditures. He begins to save early, almost as soon as he begins to earn. No matter how little it may be possible to save, save that little. Invest it securely, not necessarily in bonds, but in anything which you have good reason to believe will be profitable, but no gambling with it, remember. A rare chance will soon present itself for investment. The little you have saved will prove the basis for an amount of credit utterly surprising to you. Capitalists trust the saving young man. For every hundred dollars you can produce as the result of hard-won savings, Midas, in search of a partner, will lend or credit a thousand; for every thousand, fifty thousand. It is not capital that your seniors require, it is the man who has proved that he has the business success habits which create capital, and to create it in the best of all possible ways, as far as self-discipline is concerned, is, by adjusting his habits to his means. Gentlemen, it is the first hundred dollars saved which tells. Begin at once to lay up something. The bee predominates in the future millionnaire.
15. Of course there are better, higher aims than saving. As an end, the acquisition of wealth is ignoble in the extreme; I assume that you save and long for wealth only as a means of enabling you the better to do some good in your day and generation. Make a note of this essential rule: Expenditure always within income.
16. You may grow impatient, or become discouraged when year by year you float on in subordinate positions. There is no doubt that it is becoming harder and harder as business gravitates more and more to immense concerns, for a young man without capital to get a start for himself, and in this city especially, where large capital is essential, it is unusually difficult. Still, let me tell you for your encouragement, that there is no country in the world, where able and energetic young men can so readily rise as this, nor any city where there is more room at the top. It has been impossible to meet the demand for capable, first-class bookkeepers (mark the adjectives) the supply has never been equal to the demand. Young men give all kinds of reasons why in their cases failure was clearly attributable to exceptional circumstances which render success impossible. Some never had a chance, according to their own story. This is simply nonsense. No young man ever lived who had not a chance, and a splendid chance, too, if he ever was employed at all. He is assayed in the mind of his immediate superior, from the day he begins work, and, after a time, if he has merit, he is assayed in the council chamber of the firm. His ability, honesty, habits, associations, temper, disposition, all these are weighed and analysed. The young man who never had a chance is the same young man who has been canvassed over and over again by his superiors, and found destitute of necessary qualifications, or is deemed unworthy of closer relations with the firm, owing to some objectionable act, habit, or association, of which he thought his employers ignorant.
17. Another class of young men attribute their failure to employers having relations or favourites whom they advanced unfairly. They also insist that their employers disliked brighter intelligences than their own, and were disposed to discourage aspiring genius, and delighted in keeping young men down. There is nothing in this. On the contrary, there is no one suffering so much for lack of the right man in the right place, nor so anxious to find him as the owner. There is not a firm in Pittsburg to-day which is not in the constant search for business ability, and every one of them will tell you that there is no article in the market at all times so scarce. There is always a boom in brains, cultivate that crop, for if you grow any amount of that commodity, here is your best market and you cannot overstock it, and the more brains you have to sell, the higher price you can exact. They are not quite so sure a crop as wild oats, which never fail to produce a bountiful harvest, but they have the advantage over these in always finding a market. Do not hesitate to engage in any legitimate business, for there is no business in America, I do not care what, which will not yield a fair profit if it receive the unremitting, exclusive attention, and all the capital of capable and industrious men. Every business will have its season of depression–years always come during which the manufacturers and merchants of the city are severely tried–years when mills must be run, not for profit, but at a loss, that the organization and men may be kept together and employed, and the concern may keep its products in the market. But on the other hand, every legitimate business producing or dealing in an article which man requires is bound in time to be fairly profitable, if properly conducted.
18. And here is the prime condition of success, the great secret: concentrate your energy, thought, and capital exclusively upon the business in which you are engaged. Having begun in one line, resolve to fight it out on that line, to lead in it; adopt every improvement, have the best machinery, and know the most about it.
19. The concerns which fail are those which have scattered their capital, which means that they have scattered their brains also. They have investments in this, or that, or the other, here, there and everywhere. “Don’t put all your eggs in one basket” is all wrong. I tell you “put all your eggs in one basket, and then watch that basket.” Look round you and take notice; men who do that do not often fail. It is easy to watch and carry the one basket. It is trying to carry too many baskets that breaks most eggs in this country. He who carries three baskets must put one on his head, which is apt to tumble and trip him up. One fault of the American business man is lack of concentration.
20. To summarize what I have said: Aim for the highest; never enter a bar-room; do not touch liquor, or if at all only at meals; never speculate; never indorse beyond your surplus cash fund; make the firm’s interest yours; break orders always to save owners; concentrate; put all your eggs in one basket, and watch that basket; expenditure always within revenue; lastly, be not impatient, for, as Emerson says, “no one can cheat you out of ultimate success but yourselves.” I congratulate poor young men upon being born to that ancient and honourable degree which renders it necessary that they should devote themselves to hard work. A basketful of bonds is the heaviest basket a young man ever had to carry. He generally gets to staggering under it. We have in this city creditable instances of such young men, who have pressed to the front rank of our best and most useful citizens. These deserve great credit. But the vast majority of the sons of rich men are unable to resist the temptations to which wealth subjects them, and sink to unworthy lives. I would almost as soon leave a young man a curse, as burden him with the almighty dollar. It is not from this class you have rivalry to fear. The partner’s sons will not trouble you much, but look out that some boys poorer, much poorer than yourselves, whose parents cannot afford to give them the advantages of a course in this institute, advantages which should give you a decided lead in the race–look out that such boys do not challenge you at the post and pass you at the grand stand. Look out for the boy who has to plunge into work direct from the common school and who begins by sweeping out the office. He is the probable dark horse that you had better watch.
Trading can be taxing on emotions. Hard on health. Anxiety can arrive. The good news? There is a proactive health process you should consider right along with your position sizing algorithm:
Scientists are getting close to proving what yogis have held to be true for centuries — yoga and meditation can ward off stress and disease. John Denninger, a psychiatrist at Harvard Medical School, is leading a five-year study on how the ancient practices affect genes and brain activity in the chronically stressed. His latest work follows a study he and others published earlier this year showing how so-called mind-body techniques can switch on and off some genes linked to stress and immune function.
While hundreds of studies have been conducted on the mental health benefits of yoga and meditation, they have tended to rely on blunt tools like participant questionnaires, as well as heart rate and blood pressure monitoring. Only recently have neuro-imaging and genomics technology used in Denninger’s latest studies allowed scientists to measure physiological changes in greater detail.
“There is a true biological effect,” said Denninger, director of research at the Benson-Henry Institute for Mind Body Medicine at Massachusetts General Hospital, one of Harvard Medical School’s teaching hospitals. “The kinds of things that happen when you meditate do have effects throughout the body, not just in the brain.”
The government-funded study may persuade more doctors to try an alternative route for tackling the source of a myriad of modern ailments. Stress-induced conditions can include everything from hypertension and infertility to depression and even the aging process. They account for 60 to 90 percent of doctor’s visits in the U.S., according to the Benson-Henry Institute. The World Health Organization estimates stress costs U.S. companies at least $300 billion a year through absenteeism, turn-over and low productivity.
Seinfeld, Murdoch
The science is advancing alongside a budding “mindfulness” movement, which includes meditation devotees such as Bill George, board member of Goldman Sachs Group and Exxon Mobil Corp., and comedian Jerry Seinfeld. News Corp. Chairman Rupert Murdoch recently revealed on Twitter that he is giving meditation a try.
As a psychiatrist specializing in depression, Denninger said he was attracted to mind-body medicine, pioneered in the late 1960s by Harvard professor Herbert Benson, as a possible way to prevent the onset of depression through stress reduction. While treatment with pharmaceuticals is still essential, he sees yoga and meditation as useful additions to his medical arsenal.
Exchange Program
It’s an interest that dates back to an exchange program he attended in China the summer before entering Harvard as an undergraduate student. At Hangzhou University he trained with a tai chi master every morning for three weeks.
“By the end of my time there, I had gotten through my thick teenage skull that there was something very important about the breath and about inhabiting the present moment,” he said. “I’ve carried that with me since then.”
His current study, to conclude in 2015 with about $3.3 million in funding from the National Institutes of Health, tracks 210 healthy subjects with high levels of reported chronic stress for six months. They are divided in three groups.
One group with 70 participants perform a form of yoga known as Kundalini, another 70 meditate and the rest listen to stress education audiobooks, all for 20 minutes a day at home. Kundalini is a form of yoga that incorporates meditation, breathing exercises and the singing of mantras in addition to postures. Denninger said it was chosen for the study because of its strong meditation component.
Participants come into the lab for weekly instruction for two months, followed by three sessions where they answer questionnaires, give blood samples used for genomic analysis and undergo neuro-imaging tests.
‘Immortality Enzyme’
Unlike earlier studies, this one is the first to focus on participants with high levels of stress. The study published in May in the medical journal PloS One showed that one session of relaxation-response practice was enough to enhance the expression of genes involved in energy metabolism and insulin secretion and reduce expression of genes linked to inflammatory response and stress. There was an effect even among novices who had never practiced before.
Harvard isn’t the only place where scientists have started examining the biology behind yoga.
In a study published last year, scientists at the University of California at Los Angeles and Nobel Prize winner Elizabeth Blackburn found that 12 minutes of daily yoga meditation for eight weeks increased telomerase activity by 43 percent, suggesting an improvement in stress-induced aging. Blackburn of the University of California, San Francisco, shared the Nobel medicine prize in 2009 with Carol Greider and Jack Szostak for research on the telomerase “immortality enzyme,” which slows the cellular aging process.
Build Resilience
Not all patients will be able to stick to a daily regimen of exercise and relaxation. Nor should they have to, according to Denninger and others. Simply knowing breath-management techniques and having a better understanding of stress can help build resilience.
“A certain amount of stress can be helpful,” said Sophia Dunn, a clinical psychotherapist who trained at King’s College London. “Yoga and meditation are tools for enabling us to swim in difficult waters.”
Thanks to Gary Percy for the find. My yoga? See pics on FB.
My guest today is Yaron Brook, an Israeli-American entrepreneur, writer, and activist. He is an Objectivist and the current chairman of the board at the Ayn Rand Institute, where he is the executive director.
The topic is liberty.
In this episode of Trend Following Radio we discuss:
Trading
The nature of altruism
The idea and definitions of selfishness in the context of objectivism
The power of ideas
The idea of being a victim
Schools, teaching, and political teaching
Entitlement leading to victimhood
The rise of state power, the ambitious poor, and the minimum wage
Free work and internships
Alan Greenspan
America compared to Singapore
Listen to this episode:
Listen to this podcast on iTunes. (Please leave a rating!)
Labeling trades as right and wrong, depending on the outcome, indicates some or another emotional attachment to individual events. From the perspective of a stream of trades that generate from a trading method, you might notice that you get some winners and some losers and that your long-term results aggregate the individual events.
Trend following, like any entrepreneurial endeavor, demands you to be responsible for yourself. Charles Faulkner emphasized the point: “Trend trading and even trading in general isn’t for everyone. As too few people check out what the day-to-day life of a trader is like, and trend trading specifically, I strongly recommend they find out before making a life changing commitment.”
What does “life changing commitment” involve? You commit to not wanting to be right all of the time. Most people, let’s face it, must be right. They live to have other people know they’re right. They don’t even want the success. They don’t want to win. They don’t want money. They just want to be right. The winners, on the other hand, just want to win.
If you don’t want to win–on something in life–go jump now.
Note: Charles has been one of my most popular podcast guests. He will be on soon again.
