In 1879, at the age of 31, Edison developed an electric lamp, which aroused the strong interest of Morgan Jr
He believes that this is an industry that can subvert kerosene lamps, and it is a super track with huge market potential!
Moreover, the industry is still in the stage from 0-1, and those who take the lead will get the biggest share of the cake.
The electric light itself is not expensive, and it is very durable, just like the business model of razor + blade, printer + ink cartridge, etc., the supporting focus of electric light + electric energy is to make money on consumables and electric energy.
Edison's problem was that his lights were powered by direct current. Soon, a competitor appeared, and the genius inventor Nikola Tesla was better than the blue, inventing alternating current.
In a commercial market where cost and efficiency are everything, the more efficient AC quickly gained the upper hand.
In 1893, the Chicago World's Fair lit up the sky with alternating current at night, and Westinghouse won an order for the world's largest hydroelectric power plant, and the era of alternating current arrived.
The Edison Electric Light Company, on the other hand, was in trouble, especially with the combined blows of the economic crisis of 1890-1893.
It can be seen that angel investment is bound to be full of risks, especially in a new industry that has never been proven before.
Faced with the unpredictable risks of a new industry, how will Jr. Morgan make decisions?
First, he took advantage of the market panic caused by the economic crisis, not only buying a controlling stake in Edison Electric Light Company and kicking Edison out himself, but also buying a number of troubled electrical companies such as Thomson Houston Electric and integrating them into General Electric Company. Under the new leadership, the talented GE quickly switched to alternating current and found success.
Secondly, he has maintained great patience and looked for opportunities to acquire Westinghouse, a leader in the electrical industry. Although in the past ten years, Westinghouse Electric has been making great progress in the field of electric power, and has launched products such as hydro generators, steam turbine generators and electric trains.
Finally, during the economic crisis of 1907, Westinghouse was left in debt due to overexpansion. Morgan Jr. was able to successfully acquire Westinghouse. He has since created RCA U.S. Radio by integrating resources such as General Electric, Westinghouse Electric, and AT&T Telegram**. Become an oligopoly in the radio industry and eat up the dividends of industry development.
Through the integration of industries such as electric light, electricity, and radio, Jr. Morgan has proved that even in the technology industry, which has the highest uncertainty in the future, the investment strategy of patience+** is completely feasible.
Morgan Jr., as the third generation of the Morgan family's financier, gradually integrated dozens of industries in the United States with his excellent investment skills in the changes at the turn of the 19th and 20th centuries, and became an important force in promoting the scale and monopoly of the American economy. He has become an unprecedented legend in the history of investment.