Hetty Green: Celebrating Women's History Month
The Wizard of Finance: Lessons for Investors from Hetty Green
Women's History Month has its origins in 1981, when Congress passed a resolution designating the week of March 7, 1982, as "Women's History Week." President Reagan was called upon to issue a proclamation inviting Americans to observe the week with appropriate ceremonies and activities. Over the next five years, Congress continued the tradition by designating one week each March as Women's History Week. Then in 1987, it was expanded to the entire month of March as Women's History Month, celebrating women's achievements and contributions throughout U.S. history.
One such remarkable woman was Hetty Green, known as The Wizard of Finance, whose investment acumen and legacy offer timeless lessons.
Hetty Green: The First "Witch of Wall Street"
Henrietta Howland Robinson, better known as Hetty Green, was born in New Bedford, Massachusetts, in 1834. As a child, she lived with her grandfather and, due to his poor eyesight, began reading him stock quotes and commerce reports. By thirteen, she was managing the family’s bookkeeping.
In 1865, after her father’s death, Hetty inherited a large fortune, including a trust fund that paid her income but didn’t allow her control over the principal. That same year, her aunt died, leaving another significant estate—again, as a trust. Believing the entire estate was rightfully hers, Hetty challenged the will in court. After a five-year legal battle, she settled for $600,000—worth over $12 million today.
Her Investment Philosophy: Contrarian and Value-Driven
Hetty Green earned the nickname "Witch of Wall Street" for her unorthodox and contrarian investing style. She preferred deep-value investments, buying assets when they were deeply undervalued and out of favor, and holding them until the broader market recognized their worth.
Two of her famous quotes summarize her approach:
"I buy when things are low and nobody wants them. I keep them until they go up and people are crazy to get them. That is, I believe, the secret of all successful business."
"Before deciding on an investment, I seek out every kind of information about it."
Her early investments included Civil War bonds, real estate, and railroads—assets many others avoided at the time.
Hetty’s Legendary Frugality
Hetty Green was infamous for her thriftiness. Rumors claimed she avoided using heat or hot water, wore a single black dress, and chose undergarments that wouldn’t show wear, so they could be used longer. She responded to criticism with a shrug, once saying, "Just because I dress plainly and do not spend a fortune on my gowns, they say I am cranky or insane."
But her frugality didn’t stop her from becoming one of the wealthiest women of her time. She was a shrewd lender as well, reportedly financing the City of New York on several occasions. During the Panic of 1907, she wrote the city a $1.1 million check in exchange for short-term bonds. At one point, she was New York City’s largest individual lender. However, due to high property taxes, she moved her primary residence to Hoboken, New Jersey.
A Lasting Legacy in Finance
Hetty Green passed away on July 3, 1916, at the age of 81. At the time of her death, she had amassed a fortune estimated between $100 million and $200 million—equivalent to approximately $2.5 to $4.5 billion today. Her reputation earned her several notable titles:
The Wizard of Finance
The Richest Woman in America
The World's Greatest Miser (as listed by the Guinness Book of World Records)
Despite her wealth, Hetty was a champion of financial literacy for women. She believed all women—rich or poor—should understand finance and be able to manage their own affairs.
A few of her empowering quotes for women:
"It is the duty of every woman, I believe, to learn to take care of her own business affairs."
"A girl should be brought up so as to be able to make her own living."
"Whether rich or poor, a young woman should know how a bank account works, understand the composition of mortgages and bonds, and know the value of interest and how it accumulates."
Final Thoughts
Hetty Green’s life may have been controversial, but her unwavering discipline, sharp mind, and pioneering spirit offer timeless lessons. Her story is a reminder that patience, research, and financial independence are essential for any successful investor—regardless of the era.
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