An inspiring Story FW..

Rags to Riches...

Rose Blumkin was born in Russia in 1893. She was poor. She got on to a peanut boat and landed in Seatle illegally. She was rescued by Redcross. She could not speak English and she had never been to a school. She moved to omaha as there were more jews so that she can talk with them. She struggled for 16 years to save $500. She started a company in 1937 with that $500 by selling used clothing. She competed against people with all kind of advantages. She did not go out of her competence and she cared her customers. The retailers in Omaha pressurised furniture and carpet manufacturers not to sell to Mrs.Blumkin. But by using various strategies she got the merchandise and sold still cheaper. The retailers filed many cases on her and drawn her to court for violation of trade laws. She won all the cases after demonstrating to the court that she could profitably sell carpet at a huge discount from the prevailing prices by selling $1400 worth of carpet to the judge himself. She sold cheap with not more than 10% profit and it took her long time but she built the largest home furnishing store in U.S. in a town like Omaha which had only 7,00,000 people. Today Nabraska Furniture mart generates over $100 million of sales annually out of one 2,00,000 sq.ft store. No other home furnishings store in the country comes close to the volume. That single store also sells more furniture, carpets and appliances than do all omaha competitors combined.

Warren Buffett tried to buy it but failed a few times. One day he went to the shop and asked Mrs. Rose Blumkin whether she intend to sell and if so what is the price. She said that she is willing to sell for $60 million. Buffett on the spot accepted and the deal closed. She continued as CEO of that company on Buffett`s requset and she was the CEO till she was 103 years old, till a year before her death. Buffett called her Mrs.B and rates her as the best CEO of all the companies he had invested or owned. As per his words Mrs.B was at the stores in her tenure for 7 days in a week from opening to close and probably made more decisions in a day than most CEO`s do in a year.
She disassociated from the company for a short time due to differences with his sons and started a carpet dealing company in the next building. She continued to get her customers and was doing well. Warren Buffett was compelled to sign a non compete agreement with her. She has the guinness record for signing such s an agreement at the age of 90+. She was convinced to take the fort again and she did a commendable job till she retired herself at the age of 103. Buffet had to convince the board to relax the retirment of age of 100 to make her to continue beyond 100. Her 100th Birth day was celebrated on december 3rd 1993. She accepted with a condition that it has to be in the shop and only after shop was closed for business. Buffett in his usual jovial manner says that the candles costed more than the cake.

She was granted a honourable doctorate in commercial science by Newyork University ( Not one day in her life spent in a school room prior to her receipt of doctorate ). Previous recepients are: Clifton garcin Jr, CEO of EXXON group, Walter Wriston,CEO of CITICORP, Frank Cary CEO of IBM and Tom Murphy CEO of General Motors.

Now Mrs.B is the personal trade mark of Nabraska furniture mart now.
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Hats off to her fortitude...