Ever since Warren Buffett reshaped Berkshire Hathaway Inc. from a struggling textile enterprise into a worldwide investment powerhouse, he has been propelling people to millionaire status and, in certain instances, even billionaire heights.
Buffett frequently acknowledges the role of luck in his successes — a viewpoint that is evident in the story of Harold Alfond, a man whose ascent from poverty to billionaire was fueled by his determination, innovation and willingness to take risks.
Alfond started with little, but he was determined to succeed. He invested $1,000 in a deserted shoe factory and that investment turned into $3.5 billion.
Don’t Miss:
- Gamers are selling their old gaming items for millions. Learn why everyday gamers and investors are claiming a stake in their side hustle and how they invested over $1.2 million in this startup.
- The biggest disruption to smartphones in 15 years is here. See how this company is Giving Users An Opportunity To Make Up To $1200 A Year
Alfond was born in 1914 into a working-class Russian-Jewish immigrant family in Swampscott, Massachusetts. The Great Depression cast a shadow over his childhood, and he was forced to start working at age 14 in a shoe factory to help support his family.
Alfond quickly learned the shoemaking business, and he was eventually promoted to superintendent of the factory.
In 1939, Alfond had a chance encounter with a hitchhiker who told him about an abandoned shoe factory for sale. Lacking funds for the $1,000 asking price (about $17,000 today), he partnered with his father to buy the factory. This marked the beginning of the Norrwock Shoe Co.
In 1944, Alfond sold Norrwock Shoe Co. to Shoe Corporation of America for $1.1 million. The company liked his skills and kept him as its president for 25 years.
In 1956, Maine Sens. Margaret Chase Smith Owen Brewster, a former governor, asked Alfond to help create jobs in Dexter, Maine. In 1958, Alfond bought an empty woolen mill in Dexter for $10,000 and started Dexter Shoe Co.
Alfond was clever when it came to business. He had the idea to open stores that sold flawed goods directly to customers — no middlemen involved. This was a new concept and turned out to be a big success.
He also found a way to reuse old inventory and created outlet malls. These innovative ideas worked well and helped Alfond build a big and profitable company. By 1990, the Dexter Shoe Co. had more than 80 outlet stores, making $250 million in revenue every year and providing jobs for thousands of people.
In 1993, Buffett came into the picture. He bought the Dexter Shoe Co. for $443 million. Opting for Berkshire Hathaway stock instead of cash, Alfond’s decision significantly increased his wealth. By the time of his death in 2007, his 1.6% ownership of Berkshire Hathaway translated into $3.5 billion. According to Forbes, the Alfond family reached a net worth of $4.8 billion in 2015 and became one of the richest families in the world.
But Alfond’s story is about more than money. Even though Dexter faced difficulties, like competition from other countries that led to its decline, Alfond’s legacy of giving back is remarkable. His Harold Alfond Foundation donated over $100 million to various causes from 1950 to 2003, leaving a lasting impact on sports, healthcare and education.
His foundation has supported a wide range of causes, including scholarships for Maine students, the construction of new schools and hospitals, the development of cancer treatment centers, funding research into Alzheimer’s disease and promoting arts and culture in Maine.
In 2007, the Harold Alfond Center for Cancer Care was established from a $7 million donation, illustrating his dedication to noble causes.
The Harold Alfond Foundation also offers a $500 college scholarship to every newborn Maine resident — an investment in education from birth.
Read Next:
- Johnny Depp's Lesser-Known Talent Rakes in $3.6 Million in Just a Few Hours And It Could Make You Rich Too
- This former Google engineer thought real estate investing was too expensive and time-consuming, so he created a better approach. Thousands of investors are now using his platform to buy shares of investment properties for truly passive income.
Photo: Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
