Catching Lightning in a Bottle: How Merrill Lynch Revolutionized the Financial World

by Winthrop H. Smith Jr.

The fascinating story behind the company that revolutionized the financial world Catching Lightning in a Bottle traces the complete history of Merrill Lynch and the company's substantial impact on the world of finance, from the birth of the once-mighty company to its inauspicious end. Throughout its ninety-four year history, Merrill Lynch revolutionized finance by bringing Wall Street to Main Street, operating under a series of guidelines known as the Principles. These values allowed the company to gain the trust of small investors by putting the clients' interests first, driving a business trajectory that expanded capital markets and fueled the growth of the American post-war economy. Written by the son of Merrill Lynch co-founder Winthrop H. Smith, this book describes the creation and evolution of the company from Charlie Merrill's one-man shop in 1914 to its acquisition by Bank of America in 2008.

Author Winthrop H. Smith Jr. spent twenty-eight years at the company his father co-founded, bringing a unique perspective to bear in telling the story of the company that democratized the stock market and eventually fell from its lofty perch.

Learn why the industry initially scoffed at Charles Merrill's "radical" investment ideas Discover the origin of the Principles, and how they drove operations for nearly a century Find out why the author left a successful Wall Street career, and why it was such a smart move Examine the culture and values that built Merrill Lynch into one of the world's most successful and respected companies Revolutionary vision is rare, and enduring success is even more so. When a single organization demonstrates both of those characteristics, it is felt throughout the world. Discover the fascinating story behind Merrill Lynch and the men who built it from an insider's perspective in Catching Lightning in a Bottle.

Genres: Nonfiction, Business, History, Finance

605 pages, Kindle Edition

First published December 5, 2013

Reviews

[Bryon Brandt · Rating 5 out of 5]

This book is a very good reminder that no matter how good what you have is and how long it has been that way, mind it carefully, and don't take it for granted that it will always stay that good.

Merrill was the Visionary and Lynch was the Realist AND
Merrill recommended that The Business Needed Both

Merrill CEO Bill Schreyer said: “I’ve Never Met a Rich Pessimist.”

It was impossible to talk with that man for ten minutes
without realizing that
he knew as much about your problems and
was as honestly anxious to solve them
as yourself.


What would you buy for a Beautiful Baby Girl,
if you only had $50 to invest.

Downsizing and Cutting Expenses.
The Employees of the Firm were its Most Important Asset.
So they were mindful to Cut Fat and not Muscle.

I don’t need Bean Counters,
I need People Who Think
and have Strong Analytical Skills.

Ask Strong and Probing Questions.

You had to turn from Sales, What Do We Have To Sell?
to Marketing, What Do Customers Want To Buy?


He believed we could do anything,
even if we didn’t have an Exact Road Map on How To Get There.

Do you have any idea of what you’d like to do in the firm,
once you are through with the Training Program?

We related to Those on Whose Shoulders We Now Stood.

Tough, but never Rough.

The 9 Merrill Lynch Principles – established by Charlie Merrill in 1940,
dubbed The 10 Commandments. Distilled into 5 major Elements.
1) Client Focus
2) Respect for the Individual
3) Teamwork
4) Responsible Citizenship
5) Integrity

These principles were posted everywhere.
When making Boardroom Decisions, we’d ask:
Does this comply with these Principles?
The Devil is in the Details. How Would This Actually Work?

b00k - When Genius Failed: The Rise and Fall of Long-Term Capital Management
by Roger Lowenstein

Apparently Stan O’Neal never learned the most important Rule of Leadership, as he made his way up the Corporate Ladder.
A Company Is Only As Good As the People Who Work For It.
And the CEO’s many job is to
Create an Environment In Which They Can Thrive.
Teamwork was Expected and Rewarded.
Looking Back it is Shocking to See
How Quickly Merrill Lynch Had Changed.
Before O’Neal we had a very sound Risk Management System.
Toxic Assets that would lead to Merrill’s Demise.

Corporate Cultures Take a Long Time to Create,
But They Can Be Cracked Much Faster.

Stories maintained the Culture and Created a Bond between the Founding Partners and those who worked for the Company 80 years later.

We were proud of our Founders, our Leaders, our Colleagues.
But most of all, we were Proud of Our Principles.

This is the Story of Failed Leadership.

It is heartbreaking to see what Greed and the Absence of Principles did to one of the finest companies in America.
Where is Accountability?

Never let an Accountant or a Lawyer lead Merrill Lynch.
You need Broad Thinkers.
Merrill Lynch made many Mistakes over the years,
and Learned From Them.
Sacred Obligation to …. And this is why we loved Mother Merrill.

Client Focus.
Teamwork.
Respect for Everyone.
Community Involvement.
Integrity.
Youngest son Cameron – as a Candidate …
On Your Shoulders Rests the Good Name and Reputation of the Firm.
The interests of the Customer Comes First. – 1946 Training Class.
We are well pleased with you.
We look to you to provide the Leadership that will make Merrill Lynch a better firm in the years to come.

[Tadas Talaikis · Rating 3 out of 5]

That was too long and somewhat religious, I have mixed feelings. On the other hand, maybe to create something you need to be fanatic of The Firm. So, how do Merill Lynch revolutionized the FinTech I din't get from this book. Maybe except it started to democratize investing education, wasn't very clear, especially when I'm not from the U.S., never been there and know almost nothing about them and how they compare to other giants. It shows how they're out of reality, no analytics found whatsoever or exact details what they were doing for 40 years (except advertising). Jumps over time. Whatever, mixed, 2.5.

[Julien · Rating 2 out of 5]

这本书并不是一部好的历史书，事实上作者也没打算写成一部史书。窃以为，作者列出这些美林证券历史，最终都是为了抨击搞垮这家公司的那位领导人。
作者是美林证券早期管理者的后代，对此公司的感情不仅有职业的，更有私人的。这种复杂的感情出现在本书的各个方面，已经上升到精神层面，某种意义上干扰了我的阅读。作者并不是美林公司早期的参与者（那是他爸爸），那一段历史我相信作者也是从其他渠道转述而来。
另外，美林证券的故事并未在成书之时结束，后续还在美国银行旗下继续了好多年，直到后来美银放弃“美林”这个商标。这段历史并不在本书中出现，也不知道何时才能有机会了解。
因此，若是想跟我一样了解这家公司的故事，这本书虽然可以满足需求但无奈写得太长。我花了足足十天的空余时间才读完，而且数次想要放弃。

[M Thomas · Rating 4 out of 5]

This history of Merrill Lynch is extremely well-written by the son of CEO #2 and a former executive. He accurately celebrates the company's pioneering achievements and scope. He does somewhat exaggerate their competence and underplay the importance of nepotism. The vilification of Stan O'Neal is wholly warranted.

There are more than a few typos, confusing millions and billions, for example, or referring to British stocks as "gilts" when those are the bonds. Given the author's background, this is astonishing.

[Monzenn · Rating 4 out of 5]

Part of me is a bit miffed that this is such a positive book. Every page I turn it's about extolling this virtue that the bank maintained, or about this temptation that the bank refused to indulge in because principles. Oh but when it came to the O'Neal era, all bets are off.

On the other hand: (1) the book was written by the founder's son, and (2) you have to give some parting good news for one of the fallen in the Global Financial Crisis. I never faulted an autobiography / corporate history book for its slant (well obviously it will have a slant), and anyway the content was generally good - props for the lots of pages about bank operations, not a thing I typically see in banking books.

So all in all while I kept on rolling my eyes (even commenting at times whether I was reading a compilation of internal documents and investor relations media), the book was a good read.

[Melinda · Rating 3 out of 5]

This book was ok. I think I may have enjoyed it more if I hadn't read so many other accounts of the GFC and the banks behind it. Think it had made me feel negatively towards this company (and others)....even though this book was largely about Merrill Lynch history and how it revolutionised investing and banking...and was only later taken over by very greedy and unscrupulous people!

[Martin Rice · Rating 5 out of 5]

Absolutely outstanding! I learned so much - every Merrill Lyncher should read this.

[Andrey · Rating 5 out of 5]

Great book, recommended to anyone who's interested in investment banking or corporate governance. Thanks, Win.

[Gavin Lee · Rating 2 out of 5]

感觉全篇都是在记录事件和事实，且每谈到一个关键人物，都要追溯其生平的方式让阅读体验直线下降。作者是创始人后代，但书中内容似乎在一位拔高其父辈的贡献，到接近结束的时候一直在攻击美林的一位掌门人，让人觉得这是在清算报复，而且篇幅太长了。