Reviewing a book is new territory for us at Wealth Sigma but we understand the importance of doing so. One reason that comes to mind is that a book review remind us of why we chose to read the book many months down the line. Another reason is the lessons we have learnt from reading the book is captured without having to go back to read 300 plus pages.
Reading What it Takes as we will call it was a unique experience with a lasting positive impact on our perception and understanding of Stephen Schwarzman, Blackstone as a business, how it got started and how it does its business.
Now we do not expect every aspect of that story to be told in detail in this book and we do not expect everything written to be as it is or how it happened however what we see written is sufficient in its own way.
Many times while reading this book, we had to pause and let the lessons sink in . There was a lot of pausing. There was a lot to learn and the method of delivery was simple and direct without any superfluous language and sometimes this is what is needed.
Early Life
What it Takes begins with an account of how Stephen and his partner flew to Boston to meet the Endowment Team at MIT, to raise money for Blackstone. They were not met with success initially and but they had to knock on a few more doors.
Working his way backwards, the first section of the book covered briefly, aspects of his life that led to that moment. His family, his schooling and his work life and involvement serving his country and how relevance of these experiences led to this point.
We are introduced to his early life as the son of Jewish migrants, the store his parents had and his father’s lack of interest in expanding it bigger into something he felt it could be; perhaps as big as Beds Bath and Beyond.
The recurring theme here was Going Big and he shared examples of where he had to think differently from the people around him, and make bold decisions.
His sports coach had a positive impact on his life through the challenges he was put through, and the coaching method he practiced under.
At Yale university he was found himself in a new environment with its own set of rules however he managed to find a way to get things (that have been in place for a long time) changed and that benefited many students.
Career and Military Experience
His education put him in a good place to have the option to pursue a career. There are notable moments in his career and these are some of the ones we have highlighted.
- He sought advice from experienced people and that helped in different ways. It allowed him to build a relationship, have an outside perspective on the decisions he was looking to make and have someone he was accountable to.
- Another important aspect of his career is that he was placed in the deep end early on; he had to sink or swim in more than one case, he had more than a gulp of water but he made it. Having responsibilities early on tested what he knows and was some sort of proving ground for what he had learnt from speaking with people and his formal education.
- His experience in the army showed the importance of speaking up especially when there was a need for it. Once again, he experienced something that could be done differently and spoke up. In an environment like the Army where you are expected to do as you are told, speaking up and asking questions was and is a brave task.
He continues with being involved in a wide variety of deals, and these helped improve his knowledge, experience and relationships.
How Blackstone Began
The decision to start Blackstone was not one taken lightly from what we see and it had its own challenges despite Stephen’s education and career experience.
There were hurdles as one would expect in this process, choosing whom you will like to work with and what strategy to initially employ due to the lack of sufficient capital were important decisions that had to be made.
Observing the details of the KKR deal provided insight to how the Blackstone could work and what the possibilities are. Choosing the right type of people – 10s as they would be described was another critical decision that needed to be made. The right people will take the initiative to grow the business.
Raising money for the fund was the next big step; Stephen had an idea of how he wanted to go about it while Peter his partner had yet another. The process of raising money was challenging and required a lot of travelling often times presenting his vision to different audiences and having a lukewarm reception at best. This was something they experienced in the early days.
The other highlights in this section is his divorce and how that impacted him. Beyond that, the business expanded to other locations, added more clients and new business lines.
Giving Back and Rules for Life and Work
The latter part of the book shares details on situations where he has given back in some form or the other. The creation of the Schwarzman Scholars in China, providing support to the U.S government during the 2008 recession and looking to find common ground during the negotiation with China during the Trump administration are examples covered here.
The book ends with 25 rule for work and life which we have put together and share here.
What We Think
Often time too much emphasis is placed on smaller things rather than the bigger picture, and the important ‘things’ within that frame that matter. Seeing the bigger picture allows you have context to your accomplishments and context is important. Context helps define ‘the why’ in any undertaking.
From what we see, Stephen saw the big picture. It is not quite clear at which point he saw this; perhaps at University or when he started his job however when he did, it made a difference in what he thought was important when it came to taking the right steps in the direction that will lead to his ultimate goal.
It is safe to say learning and spending time with people who were more experienced than he was allowed him to gave an idea of things beyond his daily work and helped in the process of having context to his achievements.
This allowed him to strive for something bigger, better and just more than a promotion. His education was an important foundation on which to build the empire that was once a dream and it is worth noting a good education isn’t necessarily a guarantee for notable accomplishments in life.
Think about it, for many decades people have walked into the doors of Lehman Brothers and everywhere else Stephen worked yet not many of them decided to start their own firm or do something beyond 9 to 5 – from what we know. It may have changed, but you get my drift.
Being the child of a migrant in any society is not easy but it presents its unique challenges and opportunity. Watching your parents hustle to make a living reminds you of the price that has been paid for the opportunity you have and that alone can motivate you.
A reminder of the limited opportunities parents who are migrants were exposed to, can also serve as a reminder of the opportunities that are available for their children if they are aware of it and take the right steps.
Stephen’s parents had a store and seemed to be happy with just that however he wanted more. This is also something migrant parents do not necessarily understand. They are happy for you to just get along, get a job, a house, a family and call it a day – at least some of them are. But no! The hunger and drive for success or something more is too great and seeing what your parents can accomplish with the little they know can literally propel you to even higher heights of achievements because you know better, you should do better.
My personal favourite part of this book is as follows:
“If you want to work at Lazard, I’ll make you a job offer right here on the spot. But I advise you not to take it”
“Why”
“Because at Lazard, there are two types of people: masters like me and slaves like you would be. I don’t think you’d be happy being a slave. You should go work at Lehman Brothers, let them train you, and then come here to Lazard as a master”
A sermon can be taught on the few lines you have just read and this is what we mean by context; being a master in what you intend to do and realising that everything you do up to that point, is training and preparing you.
It is important to remember that once you see the bigger picture, it becomes easier to make certain career and relationship decisions. We consider being a master here as being in control of what you want to do and how you go about doing it. Your current job no matter how small should and is preparing you to be a master if you can see the bigger picture.
It is not about shouting down at people or having may titles before and after your name. It is about the conscious pursuit of your goals, destiny and whatever you want to call it and paying the price to accomplish that despite the hardship.
It is not about the next bonus, promotion or office politics or anything of that sort. It is about knowing what you intend to accomplish, acquiring the skills you need, forming deep and meaningful relationships and pursuing excellence all the way.
Your background, upbringing, relationships, skills or the lack of, and experiences have, and are preparing you for a moment such as this or in future so do not take your current experiences lightly and do not quit. By all means change the method but the goal should remain the same.
