The big players already were seeing the promise and success of affiliations, and so they all could see just how promising Schwab’s plan was. But there was an elemental piece to the puzzle that needed to be secured.
Financial Magnetism
“The financial magnetism that began, a generation ago, to attract thousands of small and sometimes inefficiently managed companies into large and competition-crushing combinations, had become operative in the steel world through the devices of that jovial business pirate, John W. Gates. Gates already had formed the 
American Steel and Wire Company out of a chain of small concerns, and together with Morgan had created the Federal Steel Company. The National Tube and American Bridge companies were two more Morgan concerns, and the Moore Brothers had forsaken the match and cookie business to form the ‘American’ group— Tin Plate, Steel Hoop, Sheet Steel—and the National Steel Company.
“But by the side of Andrew Carnegie’s gigantic vertical trust, a trust owned and operated by fifty-three partners, those other combinations were picayune. They might combine to their heart’s content but the whole lot of them couldn’t make a dent in the Carnegie organization, and Morgan knew it.
It’s All In What You Know
“The eccentric old Scot knew it, too. From the magnificent heights of Skibo Castle he had viewed, first with amusement and then with resentment, the attempts of Morgan’s smaller companies to cut into his business. When the attempts became too bold, Carnegie’s temper was translated into anger and retaliation. He decided to duplicate every mill owned by his rivals. Hitherto, he hadn’t been interested in wire, pipe, hoops, or sheet. Instead, he was content to sell such companies the raw steel and let them work it into whatever shape they wanted. Now, with Schwab as his chief and able lieutenant, he planned to drive his enemies to the wall.
“So it was that in the speech of Charles M. Schwab, Morgan saw the answer to his problem of combination. A trust without Carnegie-giant of them all—would be no trust at all, a plum pudding, as one writer said, without the plums.
Understanding The Elements
Charles Schwab understood the opportunity in a way that the others had failed to see up until this point. That is not so unlike those who fail to see the opportunity that the right wealth creation mindset holds. Think of yourself as a Schwab—as one who understands the essentials of the opportunity, and then act, just as Schwab did—taking steps, making actions, and making your dream a reality!
Sean Rasmussen
Success Communicator
SeanRasmussen.com © 2004 – 2009
{ 11 comments… read them below or add one }
Sean:
This is a great way to tell a story, some day you’ll have to explain how you set this up.
Wishing you a larger life,
BB
Hi Sean,
Charles Schwab was clearly a very intelligent man. He saw a great opportunity that others had failed to see and he knew instinctively how to bring the right people and elements together to make his vision a reality.
The formula for success seems so simple. See the opportunity and take the appropriate steps to make it happen. I think the right mindset is the precursor to seeing the opportunities that are available. That’s the key. Develop the right mindset and you will see the opportunities.
It sounds so easy and is so clear if you see it done. But it sometimes feels much more muddy …
But I agree with Jazz, the right mindset is the basis needed to see the opportunity – and also to have the creativity to figure out how to use it. And the last but main ingredient – take action! because you only can profit from an opportunity once you act on it, not just from seeing it.
Renee´s last blog ..Overcoming Procrastination
It’s about having an open mind, isn’t it? That’s when you can see opportunities when others don’t. Openness to people, possibilities and new ways of thinking.
Lina Nguyen´s last blog ..Richard Branson Business School: A day visit
Hi Lina,
I think it’s about having an open mind too. You have to open yourself up to the possibilities that life has to offer. If you want to be successful, you have to prepare your mind to find you the missing ingredient that will lead you to success.
Then, you have to be ready to act on it. It’s not enough to have an open mind. Success requires action.
Jazz Salinger´s last blog ..Sean Rasmussen – Aussie Internet Marketer Making a Difference
How many see the opportunity and don’t recognize as such or even worse don’t take the action.
The world would be a better place with a few more action takers
Gee´s last blog ..Why You Should Just Ignore Fad Diets (Part 2)
Hello Sean,
I have always believed in certain areas its not what you know, its who you know that will help (especially with getting jobs!!). But lately with educating myself and David we have learnt that power is knowledge. When we don’t know the answers we are looking for (searching for) we turn to other successful like minded people.
Charles Schwab looked outside the square by seeing a different way of what was sitting there as an opportunity and put it together. Or as they say “pulled it off”. He took the right steps that were needed and succeed like the others before him had not. Its all within our own understanding, and sometimes staring at us in the face. Its about taking action when you should or stepping back when you should. Sometimes taking massive action is all it takes
cheers
Lisa
Lisa Wood´s last blog ..My Kids Watch The Fridge
I think, too, that Lisa touched upon a clever part of the story. ‘Stepping back’ and ‘thinking outside the square’, in other circles of approaches to thought and its formation, it is sometimes called ‘detachment’. When there is something in front of our faces, we sometimes need to pull back a little to see clearly the whole picture. And that’s when it happens! Inspiration. I like it!
Jo Carey-Bradshaw´s last blog ..Empowering Mindset – Mastering Self
Hi Jo,
You make an excellent point. I guess it’s a case of not being able to see the forest for the trees. Sometimes when you take a step back or have a break from looking for a solution; the answer will suddenly appear.
I guess the subconscious is relentlessly looking for the answer whether you are consciously or not.
Jazz Salinger´s last blog ..Finding Your Passion
It is a grand thing to look at the largest scale possible but everyone here is right, it all starts with a small step, a tiny action, an accomplished task to get to where you want to be years from now.
Sarah Butland´s last blog ..You Are the Reason I Know It Will Happen
I don’t get it. If Carnegie was an example of Hill’s philosophy, why did this situation with Schwab develop? I discovered some new things in this post, Andrew Carnegie’s Skibo Castle, where Madonna and Guy Ritchie married. Also Picayune, a small coin worth 5 cents at the time.
Wal Heinrich´s last blog ..Think And Grow Rich Mindset Mastery