Getting Information Fast: Creating Wealth Through Insight
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Getting Information Fast: Creating Wealth Through Insight

June 28, 2023

Today, we live in an information society, but 200 years ago, Nathan Rothschild demonstrated how important information is.

Photo: Nathan Mayer Rothschild (1777-1836)

At the time, the Battle of Waterloo was taking place in what is now Belgium. It was a battle between France and the allied forces of England, the Netherlands, and Prussia. France was led by the famous Napoleon, and the British allies were led by the famous General Wellington.

Photo: Battle of Waterloo by William Sadler II

At the same time, a quiet battle was also taking place on the British trading floors. It was the investors who were fighting. The outcome of the Battle of Waterloo would move big money, because it was said that if Napoleon won, the consols would plummet, and if General Wellington won, the consols would soar.

If it was known that the government bonds would collapse, those who sold them early could avoid losses, and if it was known that the government bonds would soar, those who bought them early could make money. The winner was the one who knew the outcome of the battle earlier than others, and people on the trading floor were waiting for information on whether they should sell or buy.

Nowadays, with the development of telecommunications, information can be sent instantly via the Internet, but back then there were no Internet. The only way to get information was to wait for information from newspapers or other sources, or for people to bring information directly to us. In such a situation, Nathan used the Rothschild family's quick information transmission system to obtain a Dutch newspaper in a southern port town in England, which was the first to report the news of the British victory. This was brought to him by an agent of the Rothschilds who had jumped on a ship across the channel from a Belgian port the night before. That's what the Rothschilds are all about, isn't it?

The Rothschilds were known throughout the financial world for their excellent communication system, so everyone was watching Nathan's every move. Nathan soon returned to the London exchanges. But instead of going out to buy public bonds, he went out to sell them. Rumors spread among investors who saw Nathan's move that the British had lost, and they all began to sell at once. Bonds fell sharply, and Nathan saw this and immediately bought a lot of bonds at low prices. A short time later, the real news came that General Wellington had won, and the bonds soared.

Nathan's initial selling was a trap he had set. Nathan thus made a play, fooled everyone, and made a fortune. He was cunning and quite clever. This incident became known as "Nathan's Reverse Sellout. (Some say this incident is a myth.)

It is still the same today that people are obtaining success by getting information and acting on it before others do, even if they don't go so far as to deceive people like Nathan did.

References

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