How a Lucky Blackjack Bet Saved FedEx
Ever had a crazy idea that actually worked? Well, listen up because we’re about to tell you a tale that'll make your wildest bets look like child's play.
It's the '70s, FedEx is on its last legs, and founder Frederick W. Smith has a choice—file for bankruptcy or... go to Las Vegas with the company's last $5,000. Spoiler alert: He didn't choose Chapter 11! This is the story of how one man's ballsy blackjack bet saved Christmas (and overnight shipping) for all of us. It's The Hangover meets It's a Wonderful Life, and we promise it'll make you think twice about judging your friend's "crazy" business ideas!
Our story begins in the hallowed halls of Yale University, where young Fred Smith was busy delivering more than just good grades. While his economics professor might not have been impressed with his paper on overnight delivery services (he got a “C”), little did they know that Smith was about to address a gap in the market that would stamp his name in business history.
But Fred wasn't just about books and business plans. Oh no, this future tycoon was also brushing shoulders with future political heavyweights. As president of the Delta Kappa Epsilon fraternity and a member of the secretive Skull and Bones society, Smith was packaging quite the college experience. He even shared a passion for aviation with future Secretary of State John Kerry. Talk about a first-class connection!
After graduation, Smith traded his college cap for a Marine Corps helmet, serving as a platoon leader and forward air controller in Vietnam. For three years, he flew in the back seat of an OV-10, probably dreaming of the day he'd be piloting his own business venture. Two tours of duty, a Silver Star, a Bronze Star, and two Purple Hearts later, Smith was ready to deliver on his entrepreneurial dreams.
In 1971, armed with a $4 million inheritance and $91 million in venture capital (because who needs sleep when you're revolutionizing shipping?), Smith founded Federal Express. Two years later, FedEx (as it’s now rebranded) took flight, serving 25 cities with a fleet of 14 Dassault Falcon 20 jets.
[caption id="attachment_59792" align="alignnone" width="1024"]
Photo: Marine Corps Assn.[/caption]
This is where our tale takes a turn wilder than a package tumbling down a conveyor belt. Here we go: It's the early days of FedEx, money's tight, and Smith's just been denied a crucial business loan. What's a desperate entrepreneur to do? Why, take the company's last $5,000 to Las Vegas and hit the blackjack tables, of course!
In a move that would make even the most daring poker player sweat, Smith turned that $5,000 into a cool $27,000, just enough to cover the company's $24,000 fuel bill. A special delivery from Lady Luck herself! As Smith himself quipped, "No business school graduate would recommend gambling as a financial strategy, but sometimes it pays to be a little crazy early in your career." We'd say it pays a lot to be lucky, too, Fred!
Fast forward to today, and Fred’s company has transformed from a high-stakes gamble into a global powerhouse. Operating in over 220 countries with annual revenues exceeding $85 billion, it has certainly delivered on Smith's vision. From express delivery to freight and e-commerce solutions, FedEx has packaged itself into a one-stop shop for logistics.
Smith's wild Vegas venture serves as a reminder that sometimes, in business, you've got to know when to hold 'em, know when to fold 'em, and know when to run to the nearest blackjack table with your company's last five grand.
For those of you keeping score at home, your odds of winning at blackjack are a respectable 42.22%. But remember, back when Fred had his lucky streak, blackjack dealers played with only one deck per game, which no doubt gave him better odds than today.
In the words of the man himself, who's still around and delivering this legendary tale: "Actually, I won $35,000 but lost down to $27,000 and went to bed." Now that's what we call knowing when to quit while you're ahead!
It's the '70s, FedEx is on its last legs, and founder Frederick W. Smith has a choice—file for bankruptcy or... go to Las Vegas with the company's last $5,000. Spoiler alert: He didn't choose Chapter 11! This is the story of how one man's ballsy blackjack bet saved Christmas (and overnight shipping) for all of us. It's The Hangover meets It's a Wonderful Life, and we promise it'll make you think twice about judging your friend's "crazy" business ideas!
The Early Years: More Than Just Economics 101
Our story begins in the hallowed halls of Yale University, where young Fred Smith was busy delivering more than just good grades. While his economics professor might not have been impressed with his paper on overnight delivery services (he got a “C”), little did they know that Smith was about to address a gap in the market that would stamp his name in business history.
But Fred wasn't just about books and business plans. Oh no, this future tycoon was also brushing shoulders with future political heavyweights. As president of the Delta Kappa Epsilon fraternity and a member of the secretive Skull and Bones society, Smith was packaging quite the college experience. He even shared a passion for aviation with future Secretary of State John Kerry. Talk about a first-class connection!
From Campus to Combat: A Different Kind of Air Mail
After graduation, Smith traded his college cap for a Marine Corps helmet, serving as a platoon leader and forward air controller in Vietnam. For three years, he flew in the back seat of an OV-10, probably dreaming of the day he'd be piloting his own business venture. Two tours of duty, a Silver Star, a Bronze Star, and two Purple Hearts later, Smith was ready to deliver on his entrepreneurial dreams.
The Birth of FedEx: When Overnight Became Overnight Famous
In 1971, armed with a $4 million inheritance and $91 million in venture capital (because who needs sleep when you're revolutionizing shipping?), Smith founded Federal Express. Two years later, FedEx (as it’s now rebranded) took flight, serving 25 cities with a fleet of 14 Dassault Falcon 20 jets.
[caption id="attachment_59792" align="alignnone" width="1024"]
Photo: Marine Corps Assn.[/caption]Vegas, Baby! When Gambling Saved the Day
This is where our tale takes a turn wilder than a package tumbling down a conveyor belt. Here we go: It's the early days of FedEx, money's tight, and Smith's just been denied a crucial business loan. What's a desperate entrepreneur to do? Why, take the company's last $5,000 to Las Vegas and hit the blackjack tables, of course!
In a move that would make even the most daring poker player sweat, Smith turned that $5,000 into a cool $27,000, just enough to cover the company's $24,000 fuel bill. A special delivery from Lady Luck herself! As Smith himself quipped, "No business school graduate would recommend gambling as a financial strategy, but sometimes it pays to be a little crazy early in your career." We'd say it pays a lot to be lucky, too, Fred!
From Vegas Victorious to Logistics Legend
Fast forward to today, and Fred’s company has transformed from a high-stakes gamble into a global powerhouse. Operating in over 220 countries with annual revenues exceeding $85 billion, it has certainly delivered on Smith's vision. From express delivery to freight and e-commerce solutions, FedEx has packaged itself into a one-stop shop for logistics.
The Moral of the Story: Sometimes You Gotta Roll the Dice
Smith's wild Vegas venture serves as a reminder that sometimes, in business, you've got to know when to hold 'em, know when to fold 'em, and know when to run to the nearest blackjack table with your company's last five grand.
For those of you keeping score at home, your odds of winning at blackjack are a respectable 42.22%. But remember, back when Fred had his lucky streak, blackjack dealers played with only one deck per game, which no doubt gave him better odds than today.
In the words of the man himself, who's still around and delivering this legendary tale: "Actually, I won $35,000 but lost down to $27,000 and went to bed." Now that's what we call knowing when to quit while you're ahead!