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Quote of the Day
The character which results from wealth is that of a prosperous fool.-Aristotle
July 30th – This Day in Stock Market History
July 30th, 1863 – Henry Ford is Born.
Ford would found Ford Motor Company 40 years later, and would become one of the most famous brands in America.
But, I think it’s important to note that while Henry Ford is known for starting one of America’s most famous brands today, he “failed” several times early on.
Ford’s first company was the Detroit Automobile Company, which he founded August 5th, 1899. The company would only survive until January 1901, when the company was dissolved.
Then, Ford would launch the Henry Ford Motor Company in 1902, but leave a year later after dispute with his business partner. (The company would be renamed Cadillac Motor Company, a well known brand still today).
It would not be until June 16th, 1903 when Ford would launch the Ford Motor Company that we know today.
At its founding, Henry Ford had $28,000 to start Ford Motor Company. Today his company has a market cap of more than $38 billion!
That amounts to a compounded annual growth rate (CAGR) of 13%!
Want to see other examples of compounding interest at work? Check out our Compound Interest Calculator
July 30th, 1914 – The Dow Jones Industrial Average falls nearly 7% as fears about World War 1 escalate.
Traders on the New York Stock Exchange were rightfully on edge.
Austria had invaded Serbia, Russia was mobilizing troops on its boarder, and Germany was threatening Russia with war should it advance.
Germany would declare war August 1st.
Rumors circulated the exchange floor that the New York Stock Exchange would be closed. But on this day, exchange officials would do their best to quell the rumors.
However, that would not last. As news began to reach America of the rapidly escalating situation in Europe, traders began to panic. The next morning, July 31st, the New York Stock Exchange would not open – And would remain closed until December.
Best July 30th in Dow Jones Industrial Average History
1940 – Up 2.29%, 2.82 points.
Worst July 30th in Dow Jones Industrial Average History
1914 – Down 6.91%, 3.88 points.
Read of the Day
The 2 best books you’ll read on Henry Ford: This is a transcript of an interview with Bob Casey, an automotive historian and Curator of Transportation at the Henry Ford Museum of American Innovation. He recommends to book on Henry Ford:
- The People’s Tycoon: Henry Ford and the American Century
- “Watts’ book is the best one-volume biography of Henry Ford that I have ever read – despite all that has been written about Ford, Watts still manages to find new insights,”
- Young Henry Ford: A Picture History of the First Forty Years
- “Olson mined the Ford family and business records to create a lively, well-illustrated account of Henry Ford’s first forty years, from his childhood to the initial success of Ford Motor Company.”
Go To Next Day: July 31st, 1914: The New York Stock Exchanges closes as panic of WW1 reaches a climax –>