Andrew Carnegie (November 25, 1835 – August 11, 1919) was one of America’s original and most famous titans of industry, helping to usher in the Industrial Revolution and the Gilded Age. He was one of the richest Americans in history and while he was primarily known for his successful business empire, he was also famous for his significant philanthropic work.
His method came from the way up. At thirteen he was a bobbin boy in an Allegheny cotton mill for $1.20 a week. He moved to the telegraph office, learned to read Morse code by ear in the days when most operators still read the paper tape, and rose to be private secretary to Thomas A. Scott of the Pennsylvania Railroad. The railroad taught him organization, and it taught him the power of knowing costs exactly. He carried both into steel: every department kept cost sheets, every works was judged by the price of a finished ton, and partners were picked for talent and drive. The savings went back into newer plant, which is much of why Carnegie Steel could meet a competitor’s price and still make money. After the sale, he ran his giving the same businesslike way, and spent his last eighteen years at it as a second career.
The son of a Scottish weaver, Carnegie’s family immigrated to America when he was 12 years old, settling in Pittsburgh, Pennsylvania. He started out working in a cotton factory before taking a telegrapher role at the Pennsylvania Railroad. Carnegie leveraged his time at the railroad to learn about the business world and the burgeoning steel industry. He was a quick study and also began developing a network and accumulating various investments in railroads, bridges, oil, and transportation.
Carnegie eventually went all-in on manufacturing steel, pig iron, and coke, forming the Carnegie Steel Company in 1892 (although he was already a large player in steel since 1872). Already one of the richest men in the country, in 1901, Carnegie sold his company to J.P. Morgan for $480 million (approximately $16 billion in today’s money). At the time, he had surpassed John D. Rockefeller as the richest American. After the sale, Carnegie devoted himself to philanthropy, giving away a vast amount of his fortune to causes such as the endowment of more than 2,500 public libraries, creation of the Carnegie Institute of Technology, building Carnegie Hall, among many other causes.
Taking advantage of the favorable business and tariff environment of the time, Carnegie was known for his shrewd and efficient business practices. He helped pioneer vertical integration of materials and suppliers and he was fanatically devoted to controlling costs. This allowed Carnegie Steel to out-compete any would-be competitor, drive them out of business, or take them over.
Carnegie’s entrepreneurial rise to become one of the most successful businessmen and philanthropists in the world is the embodiment of the American Dream. His life and business practices are used as case studies for business leaders and politicians to this day.
Core Ideas
- Watch one basket. Put all your eggs in one basket and then watch that basket; a single business mastered deeply beats a dozen dabbled in.
- Motivate yourself. No talent cancels a man who cannot drive himself; the unmotivated must settle for mediocrity.
- Put in more than fifty percent. The average person gives his work a quarter of his capacity; the world takes off its hat to those who give half, and stands on its head for the rare soul who gives everything he has.
- Watch the costs. Know what every ton, page, and hour truly costs to produce; profits largely take care of themselves when costs are kept in hand.
- Hold surplus wealth as a trust. Give it away with your own hands while you live, and build libraries, schools, and halls that others can climb by.
Andrew Carnegie Quotes
“People who are unable to motivate themselves must be content with mediocrity, no matter how impressive their other talents.”
“The way to become rich is to put all your eggs in one basket and then watch that basket.”
— The Empire of Business (1902)
“The average person puts only 25% of his energy and ability into his work. The world takes off its hat to those who put in more than 50% of their capacity, and stands on its head for those few and far between souls who devote 100%.”
“Immense power is acquired by assuring yourself in your secret reveries that you were born to control affairs.”
“The man who acquires the ability to take full possession of his own mind may take possession of anything else to which he is justly entitled.”
Andrew Carnegie Books
“Andrew Carnegie” – by David Nasaw. The modern standard biography: the full arc from bobbin boy to steel king to the great giving, drawn from his private papers.
“The Gospel of Wealth Essays and Other Writings” – by Andrew Carnegie. His own words: the essays on wealth, capitalism, and giving, selected and introduced by David Nasaw.
“Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership that Changed America” – by Les Standiford. The double story of Carnegie and his partner Henry Clay Frick, and the partnership that built the steel empire and broke apart at Homestead.
“Andrew Carnegie and the Rise of Big Business” – by Harold C. Livesay. The concise scholarly life, brisk on the business system of costs, integration, and organization that beat the competition.
You can browse all of Andrew Carnegie’s quotes in the SAGE QUOTE LIBRARY. For additional information, quotes, and books on similarly relevant famous individuals, please visit the SAGE PROFILES page on the site. Please also visit the SAGE BOOK RECOMMENDATIONS page for many other great reads sure to add to your worldly wisdom. As an Amazon Associate I earn from qualifying purchases.
