Growing Rich - Arabictrader.com

KIRK KAZANJIAN
property and casualty insurance stock prices began to go through the
roof. As usual, Davis was among the first to recognize this trend, and
he profited handsomely from it. Davis didn’t really have an investment
management arm at his brokerage firm. Instead, he earned a commission
each time a client bought stocks (based on his uncanny recommendations).
But he didn’t become a multimillionaire from the commissions
he generated. His real money was made by picking winners
for himself. The commissions were just icing on the cake.
SERVICE IN SWITZERLAND
Once more, timing was everything. In 1968, President Nixon tapped
the elder Davis to become U.S. ambassador to Switzerland. It was a
post for which he was well qualified because of his long history and
connection with Switzerland. He went to school there and had made
many connections both as a student and a reporter. He and his wife
moved to Bern, where they lived for six years.
As ambassador, Davis left his fortune behind in New York and no
longer followed the stock market very closely. But some of the biggest
insurers in the world are in Switzerland, including Swiss Re and Zurich
Insurance. Of course he monitored their progress. Nevertheless, investing
had become little more than a sideline. When he returned to the
United States in 1974, he discovered his net worth had dramatically
fallen, due in large part to the stock market crash of 1973-1974. He
decided to focus on rebuilding his personal fortune. For the next 15
years, he worked harder than ever, analyzing stocks, closely monitoring
his holdings, and making sure always to keep his eye on the ball.
Although he served as chairman of the Heritage Foundation, a conservative
Washington think tank, investing was once again the passion
that ruled his life. This hard work paid off. He continued to build his
fortune, which grew from about $20 million in 1974 to some $400
million by 1990, at which time he became ill and began funneling
money into son Shelby, Jr.’s mutual funds.
THE RUSSIAN EXPERT
Shelby Cullom Davis and Company, the firm, still exists today.
Kathryn Davis continues as its only partner and, at 92, is the oldest
female member of the New York Stock Exchange. Kathryn has never
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