An Old Yarn in the Fabric of Berkshire Hathaway
During the first half of the 1800s , New Bedford , Massachusetts was the epicenter of the lucrative whaling industry . Much like venture capital-backed companies today , whaling voyages were risky endeavors . The average voyage lasted nearly four years and few ships produced returns worthy of the risk . The most successful whaling investors performed exhaustive due diligence and spread their risk over many voyages . The goal was to gain exposure to an occasional blockbuster , which would offset subpar returns and total losses . Hetty Green ’ s ancestors , the Howlands , were among the most successful whalers in the nation . Hetty ’ s patience and relentless due diligence practices were undoubtedly shaped by her upbringing .
In 1869 , the tide in New Bedford began to shift . That August , Colonel Edwin Drake drilled the world ’ s first oil well in Titusville , Pennsylvania , thus providing Americans with a cheap alternative to whale oil . Many New Bedford residents searched for new investments to diversify their exposure to whaling . New England ’ s textile industry was thriving at the time , making it an attractive prospect .
In 1888 , a New Bedford resident named Horatio Hathaway entered the textile industry by forming the Hathaway Manufacturing Company . The original partners contributed $ 400,000 of capital . Despite Hetty Green ’ s reputation for maintaining a sparse wardrobe — she was known to wear a simple , black dress until it was threadbare — she contributed $ 25,000 to the venture . Over the next 67 years , Hathaway Manufacturing operated as a successful , but little-known , producer of cotton textiles . In 1959 , the company merged with Berkshire Fine Spinning Associates to form Berkshire Hathaway . Then , in 1964 , an up-and-coming investor named Warren Buffett acquired Berkshire Hathaway . The textile business proved unrewarding to Buffett , but the namesake survived . Buffett and his business partner , Charlie Munger , used Berkshire Hathaway as an investment vehicle , and their performance over the subsequent 60 years established them as two of the greatest investors in US history . Unknown to nearly all Americans is the fact that Hetty Green sewed one of the first threads into the canvas of this American masterpiece . disciplines for students who wish to follow their career passions . Thirty-seven hospitals and faith-based organizations provide aid to those seeking physical healing and spiritual guidance . Individuals seeking to adopt Hetty ’ s practice of self-education can visit four libraries which provide free or inexpensive access to invaluable resources . Finally , seven organizations dedicated solely to service of the public good remind us of Hetty ’ s commitment to uphold her civic duty .
Hetty Green ’ s character and accomplishments remain largely unknown today because she was misunderstood by both peers and historians . The hope is that shining a light on her extraordinary life and legacy will allow others to adopt the values that fueled her success and honor a tragically misunderstood American hero .
Bethany Bengtson is a Fordham MBA and has a decade of experience as an analyst under Apollo Global Management , KPMG Capital and Publicis Groupe . Her work has been featured in the Wall Street Journal , Boston Globe , Harvard Business Review , Atlanta Journal-Constitution and Columbia ’ s School of International Affairs .
Mark Higgins , CFA , CFP ® is a financial historian , experienced institutional investment advisor and frequent contributor to Financial History magazine . His book , Investing in US Financial History ( Greenleaf Book Group , 2024 ), recounts the full financial history of the United States from 1790 to 2023 .
Courtesy of Berkshire Hathaway
Sources Carpenter , Frank G . “ A Chat with Hetty
Green .” The Saint Paul Globe . July 18 , 1897 .
Green , Hetty and Montgomery C . McGovern . “ Words of Wisdom from the Wealthiest Woman in America .” Woman ’ s Home Companion . February 1900 .
“ Hetty Green ’ s Son and Heir Trained by Her .” The New York Times Magazine . July 9 , 1916 .
Hodges , Leigh M . “ The Richest Woman in America .” The Ladies Home Journal . June 1900 .
Schroeder , Alice . The Snowball : Warren Buffett and the Business of Life . New York : Bantam . October 2009 .
Sparkes , Boyden , and Moore , Samuel T . The Witch of Wall Street : Hetty Green . New York : Doubleday . 1935 .
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