Thomas Rowe Price: "No to chemistry, yes to investing

Old-school investor, Thomas Rowe PriceNevertheless, he was able to adapt to new conditions dictated by the times and stay afloat.

From chemist to investor

Thomas Rowe Price was born in 1898 in the state of Maryland, USA. His father was a successful rural doctor, which may have influenced Thomas to enroll in college after high school to study chemistry. However, the young man did not work in his specialty for a long time, as he realized that he was more attracted to studying companies and analyzing their financial statements.

Thomas decided to put his open analytical gift to good use by taking a job at a brokerage firm. There he was engaged in advising clients on the most attractive securities for them, as well as compiling surveys stock market. It was at Price's instigation that his firm established a specialized investment division primarily focused on , prospectingThis department did not bring instant profit, however, the owners became dissatisfied with its results. However, this department did not bring instant profit, the owners became dissatisfied with its results, so Thomas Price decided to leave the office, organizing his own business.

Thomas Rowe Price Investment Funds

His first investment fund was opened in 1950 and consisted mainly of gifts from clients to their own children, made to Price's institution and placed under his management. The fact is that the then US legislation allowed gifts of up to $ 3 thousand to anyone, and this was tax-free. Having thus collected capital for investment, the Price Foundation, despite the rather small amount of contributions, was able to effectively manage it and diversify briefcase.

The institution did well, so soon, in 1960, it was founded. second investment fundThe fund analyzes small but promising companies. Betting on them, as it seemed in the first years of the fund's existence, did not justify itself, but soon Price's second brainchild began to bring considerable dividends to his clients. In the 1970s, the famous investor, anticipating the growing inflation and rising interest rates in the country, switched to the shares of resource companies, as well as transactions with the bonds (both state and municipal) and with gold.

Thomas Rowe Price didn't live long enough to transform his T. Rowe Price Associates into a publicly traded company. However, during his lifetime, the famous investor could see with his own eyes the excellent results of the fund he managed, which was recognized as the best in the USA and demonstrated 500% net capital growth per year. T. Rowe Price Associates successfully functions to this day, continuing to bear the name of its creator.