PRISM Honors Veterans Day with An Inside Look at Companies Started by American Heroes
All Gave Some and Some Gave All. Thank You to Our United States Veterans.
As political tensions swirl over the recent election that has divided the people by party, it’s important to remember that ultimately, all citizens of this country, are Americans. We are Americans who are provided freedoms and liberties that have been fought for by American men and women that include some who have even made the ultimate sacrifice. Today we honor our heroic soldiers, and we thank them for their service.
For over 100 years Americans have been remembering and honoring our Veterans on this day. On November 11th, 1919, President Woodrow Wilson commemorated our country’s first Armistice Day. This holiday originally was created to honor the Veterans of World War I. However, by 1954 after World War II and the end of the Korean War, November 11th became known as Veterans Day which was intended to honor American Veterans of all wars.
In honor of those who have served for our country, PRISM MarketView would like to highlight a few companies and celebrate the successful Veterans who started them.
Two American Kids in the Heartland
The global grocer, Walmart Inc. (WMT) got its start thanks to two brothers in Rogers, Arkansas by the names of Sam and Bud Walton. Bud served as a bomber pilot for the US Navy in the Pacific and Sam was a former US Army intelligence officer who served between 1942-1945. In 1945, Sam bought his first Ben Franklin variety store which after five years, became the top Ben Franklin franchise in the state. By 1960, Sam owned nine Ben Franklin variety stores that were annually generating over a million dollars in business. Sam Walton stated, “By then, I knew that the discount idea was the future.” So, in 1962 Sam and Bud Walton opened the first Wal-Mart Discount City, in Rogers, Arkansas.
Today Walmart operates as the largest retail company in the world with over 10,500 stores and clubs in 19 countries. Company revenue has been over $600Bn since 2022 with about 240M customer visits per week. Most recently, Walmart announced its multi-event deals experience that kicks off today and runs through Cyber Monday. Walmart shares are up 59% YTD.
Living The American Dream
The energy company who owns and operates oil and gas pipelines and terminals, Kinder Morgan (KMI) was founded by Richard Kinder and William Morgan. The true ‘American Dream’ can be depicted in Richard Kinder’s story who came from Girardeau, Missouri and was the son of a schoolteacher and life insurance salesman. Upon graduating with a law degree from the University of Missouri in 1968, Kinder received a draft notice and enlisted in the US Army where he served in Vietnam as a US Army Captain and became a ‘JAG’ or a Judge Advocate General officer. After four years in the Army, Kinder left and began his career that started with a big investment fall through which led to filing for bankruptcy in 1980. As he looked to get back on his feet, Kinder took a job with the Florida Gas Transmission energy company, later known as Enron. By 1990, Kinder built a vast and deep understanding of gas-industry regulation and was a tough, disciplined manager with tenacity and the will to succeed which led him to become Enron’s President and Chief Operating Officer. In 1996, he left the company and started Kinder Morgan.
Today Kinder Morgan is one of the largest energy infrastructure companies in the country and is the largest independent transporter of petroleum products in North America. With over 80K miles or pipeline and over 180 terminals this “Run for Shareholders. By Shareholders.” company recently reported a strong Q3 with a 2% dividend increase to shareholders and EPS that was up over 17% since the prior year. In the release, Kinder, who is now the company’s Executive Chairman stated, “With war continuing in Ukraine and conflict escalating in the Middle East, the centrality of energy security to national security has never been more clear. We are proud to be part of a sector that provides that energy security to our fellow citizens, and increasingly allows allies to forego dependence on those who use energy as a geopolitical weapon.” Shares of Kinder Morgan are up 52% YTD.
From Semper Fi to The World On Time
Transportation company, FedEx (FDX) was founded by Frederick Smith who upon graduating from Yale, was commissioned as a Marine Corp officer where he would serve two tours in Vietnam. During his tenure, Smith earned a Bronze Star, Silver Star, and two Purple Hearts. Only two years after Smith left the Corps where he spent much time observing how the military was getting things from Point A to Point B, he started Federal Express claiming, “I wanted to do something productive after blowing so many things up.” So, in 1971, Smith founded the Federal Express in Little Rock, AK and on April 17th, 1973, FedEx began operations in Memphis, TN with 389 team members. That night, 14 aircraft delivered 186 packages to 25 U.S. cities.
Today, FedEx is the world’s largest transportation company who on average now delivers 5.58M packages per day and has an estimated annual revenue of $88Bn. The company’s success Smith still credits to our US Marine Corps mentality, “Much of our success reflects what I learned as a Marine. The basic principles of leading people are the bedrock of the Corps. I can still recite them from memory, and they are firmly embedded in the FedEx culture.” Recently, FedEx reported it has completed its first-ever roundtrip deliveries on its FedEx Panda Express as it transported pandas from Atlanta, GA. to China and from China to Washington, D.C. Shares of FedEx are up 15% YTD.
Sailing In the USA
The Sperry Top-Sider shoe who is now owned by private company Aldo Group was invented by First Class Seaman of the US Naval Reserve, Paul A. Sperry. Although Sperry only served for one year from 1917 -1918, his love for sailing remained with him. After a slip overboard, Sperry worked long and hard to design a non-slip shoe that was inspired by the grooves on a dog’s paw after observing their ability to run down icy hills without slipping. By 1937, Sperry applied for a US patent for his non-skid sole and by 1939 the Sperry Top-Sider was acknowledged as one of the official shoes of the US Navy who negotiated the right to manufacture the shoe for its sailors. This significant increase in production led to Sperry selling to the US Rubber Co in 1940.
After about 40 years, the Stride Rite Corporation bought Sperry and Keds from US Rubber and about 30 more years later in 2007, Payless ShoeSource acquired the brand. This acquisition did not last long when in 2012, Wolverine Worldwide (WWW) purchased Payless and other brands for $1.23Bn. Most recently at the start of this year, Wolverine announced the sale of Sperry to Authentic Brands Group who is licensing the brand to Aldo Group for North America.
Once again, PRISM would like to say thank you to all the men and women who have served for this country we appreciate your heroism and sacrifice.
