The Unknown Story of Henry Phipps.

A motivational story about believing in your best friend.

Henry Phipps was a key figure in the steel industry and a close friend and business partner of Andrew Carnegie. Born in 1839 to modest means in Philadelphia, he grew up in a working-class environment that instilled in him a strong work ethic and a keen sense of financial prudence. Moving to Pittsburgh with his family, Phipps found work early on in the burgeoning iron and steel industry, gaining practical skills and forming connections with other ambitious young men, including Andrew Carnegie.

The two shared a vision of success, driven by the belief that steel growth would reshape America’s economy and society. Steel production was not entirely understood but these two men saw a future in the industry. In 1865, Phipps became a partner with childhood friends and neighbor Andrew Carnegie at Union Iron Mills. Andrew was known to make incredibly ambitious business decisions, while Phipps acted as a sounding board, and helped keep Carnegie in check. Andrew would swing for the fences, and Phipps would help keep him logistically efficient. This was crucially needed in the fast changing landscape of steel production.

This friend's accountability proved to be a worthwhile help to Carnegie. They juggled ideas for about year before they finalized a professional partner agreement.

In the year 1866, after a traveling expedition. Phipps and Carnegie solidified their business dynamic and partnership. Phipps grinded away for the next 20 years and proved an intelligent financier, becoming Carnegie's business partner in Carnegie Steel Company. Phipps took a career bet on Carnegie. Phipps decided his destiny was to help Carnegie succeed. It paid off big time. He became an extremely wealthy man and would eventually become the company's second-largest shareholder.

In 1901, Carnegie Steel Company was acquired by United States Steel Corporation. The buyout was orchestrated by J.P. Morgan himself. It sold for $400 million USD (roughly estimated at $13.3 billion today), of which $226 million went to Carnegie. After the deal Phipps walked away with $48 million. Henry’s share equivalent in today’s dollars was $1,780,523,294.12

KEY THOUGHT: Your network has some velocity. Always be giving value to the people around you, and they will figure out ways to return the favor. Believe and motivate your friends to become better. Relationships are extremely important. Always try to come from a place of authenticity. You might be 1-2 people away from some life changing conversations. Celebrate other people’s success. There is room for others to win.

Source: Source: (June 8, 1986). "REJUVENATING OLD MONEY". The New York Times.