Charles Schwab is the founder and chairman of The Charles Schwab Corporation. What began as a small discount brokerage company in the 70’s has evolved to become the nation’s largest publicly traded investment services firm, with close to $4 trillion in client assets. He is also the chairman of The Charles and Helen Schwab Foundation, a private foundation focused on education, poverty prevention, human services, and health. He is the author of several bestselling books with his latest memoir titled Invested.
Some interesting insights from this episode:
- He had to work extra hard to build his self-confidence to overcome his dyslexia and to keep up in class.
- People with dyslexia are conceptual thinkers who tend to not get lost in the weeds. Some people are very literal in learning and need to go from step 1 to 2 to 3 while dyslexics can go from step 1 to step 10.
- Seeing an inherent conflict of interest between commissioned stock brokers and the customers, he invented a new contrarian business model by paying salaries to people placing trades with a bonus tied to the overall success of the company.
- After the tech meldtown of the early 2000’s, Charles had to come out of retirement to run the company again. He had to lay off thousands of employees and get the company turned around. Sometimes founders are the only ones who can make the tough calls and drive huge fundamental changes to the business.
- He was a consummate innovator who continually pivoted, redefined the business, and opened up new markets. He knew it was important to disrupt yourself before someone else did it for you.
- When hiring, beyond skills and experience, he looks at their character and ethics and their responsibility to the customer.
- “Excellence is an ongoing pursuit. You are always striving for it but you never achieve it.”