John D. Rockefeller is widely considered the richest person in modern history. But how did he accrue such massive wealth? By choosing investments at the beginning of a 100-year trend.
Many investors make the mistake of investing in a company or sector once "everyone else is doing it". This type of investment strategy sometimes achieves good returns, but rarely achieves great ones.
What did Rockefeller Invest In, Anyway?
Rockefeller invested in oil & gas. Sound genius? It didn't in 1870! Back then, people were really only using oil in lanterns, so founding the Standard Oil Company - an entire company focused on oil production - sounded crazy to most! But Rockefeller saw what other investors did not - the capability of using fuel to completely change the way we powered the world. At the time, trains and boats were powered by steam, and horse-drawn carriages were the primary source of transportation for individuals. But that was all about to change...
By 1886 we had gas-powered cars, then diesel trucks by 1923, and diesel locomotives by 1924.
Rockefeller's Investment is Still Paying Off - Over 100 Years Later
Today, 153 years after Rockefeller's first big investment into oil & gas...
- oil & gas represents a $5 trillion/year industry
- gas-powered automobiles represent a $3 trillion/year industry
- diesel engines represent a $212 billion/year industry
- diesel locomotives represent a $14 billion/year industry
How to Invest Like Rockefeller
Rockefeller used one simple investment strategy - he invested in innovations that could feasibly change massive industries for over 100 years. Innovations can be products, services, components, systems, or even ways of doing things!
Sound hard? Not if you start at the end instead of the beginning! Anyone can invest like Rockefeller using this simple 2-step approach:
#1: Start at the end and not the begining
Instead of thinking about what to invest in for the next 100 years, make a list of things that haven't changed in 100 years (even 50 years will do). What companies have been around the entire time you have been alive? Are these companies still basically peddling the same product? What industries do people think will never change? What problems are these industries facing?
In 1870, Rockefeller's list may have looked something like this:
- Trains - have been running on steam for 66 years
- Boats - have been running on steam for 63 years
- People - have been traveling in horse-drawn carriages since about 3000 BC
In 2023, the same list might look something like this:
- Trains - have been running on diesel fuel for 111 years
- Boats - have been running on diesel fuel for 112 years
- People - have been traveling in gas-powered vehicles for 137 years
#2: Find an innovation that can make really big industries operate more efficiently (cheaper & better)
Fossil-fuel production completely changed the way we power the entire transportation industry. Gas & diesel fuel ultimately made transportation much more efficient. But oil & gas production wasn't the only innovation generating huge returns - the innovators, investors & companies creating gas-powered engines, planes, trains, boats & automobiles generated billions too!
Test Your Skills
Investing like Rockefeller is easy when you take a moment to use that noggin you have been carrying around your entire life! Think about what industries are using really old technology. Write them down in a list called Target Industries. Are any of these industries struggling because of the old technology? Who is providing that technology? These suppliers may be big, well-known names now, but they are probably not good investments. Write these companies & technologies in a list called The Bygones. Now all you have to do is figure out who and what might replace them! Search online for any new companies & technologies in the space. List as many as you can find. You can call this list The Rockefellers. Now learn about them. Dig deep into their solutions, for it is from this list that you have a really good chance of investing in something that will generate Rockefeller-like returns.
Where to Invest Right Now
When we present opportunities, it can pay to listen. Contact us today see the company we think will drive Rockefeller-like returns for the next 100 years: InvestorRelations@FDLDholdings.com
How it works
We only choose 1-2 private companies to work with each year, bringing our network of investors private equity opportunities they can trust. Investment opportunities are presented to investors via Zoom call (or in-person if you live near Dallas, TX or Columbus, OH). A typical presentation takes about an hour and is scheduled at a time convenient for you. Because every investor has different goals & questions, we do not schedule you at the same time as other investors unless those investors are invited by you. (You are welcome to invite anyone you'd like - such as peers, associates, investment partners, friends, spouses &/or advisors.) Each call is scheduled independently to allow for dynamic discussion during the investment overview, as well as answers to any unique questions you may have. Most of our investors listen to every opportunity, as it helps them get to know our style and approach with companies, as well as the different options available to them. Each investment opportunity is structured as an independent limited partnership, making it easy for investors to choose whether or not to participate. We have a no-pressure approach; we simply request a yes/no decision within 2 weeks of our call (funding times vary; they do not always have to happen within 2 weeks).
New to Private Equity?
Approximately 35% of the investors in each of our limited partnerships are new to private equity. Most of our new investors are business owners, professionals (doctors, lawyers, accountants, consultants, real estate agents, athletes), technical experts (engineers, scientists) and corporate executives who are specialists in fields where investment strategy was not a part of the curriculum. Individuals with these careers have historically been excluded from the PE world, and it is our passion to change that. We love educating others on the unique business strategies of the companies we work with, how the PE space works, how deals are structured, and how allocating a portion of their retirement savings to private equity (instead of 100% stocks) can generate significantly higher returns without increasing risk. "My wife and I are doctors. We have learned more about industries, business strategy, and investment strategy listening to your deal presentations than we ever did in school. It is so helpful that each company is presented as a unique investment because it allows us to really understand different timelines, types of returns, and exit strategies. We have even applied some of this to our practice! Your style and approach is so refreshing; as is your detail and diligence. For the first time in our lives, we actually feel like we are prepared for retirement." -Dr. K & Dr. H
FDLD specializes in bringing private investment opportunities to individual investors. We have a down-to-earth, no pressure approach and love introducing investors to their options in private equity.
Contact Us: InvestorRelations@FDLDholdings.com
Want more investing ideas & insights? Subscribe below.