In this video, Patrick Bet-David explains the incredible story of Joseph P. Kennedy Sr. and how he built the Kennedy family’s wealth and power in the early twentieth century.
Joseph P. Kennedy was born in Boston, Massachusetts on September 6th, 1888 to Mary Hickey and Patrick Joseph “PJ” Kennedy. Patrick rose up from manual labor to working in some of Boston’s preeminent financial institutions like the Columbia Trust Company and the Sumner Savings Bank. Patrick also served in the Massachusetts House of Representatives as well as the state Senate and East Boston Ward 2.
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Joseph began his career as a clerk for Columbia Trust Company. He became president of the bank at 25 years old when he successfully organized opposition to a takeover bid, becoming the youngest bank president in America. He networked his way into getting elected to the Board of Trustees of the Massachusetts Electric Company in 1917.
Joseph did very well initially, but lost all of his profits when the Lusitania sank and war threatened the United States. This caused Joseph to backpedal and become less daring in his investments for a time. He eventually became manager of Hayden-Stone Investment bank, making a decent sum but soon noticed that the real key to making a fortune is to become an expert in one specific industry, start a business in that industry, and then sell it.
He learned this directly from his bosses, Hayden and Stone, who did it within the oil and steel industries. Joseph became determined to follow the same success model with his own firm. By 1923, he started a business managing money for clients, a kind of precursor to the hedge fund. By 1926, he made $2 million, mainly because of his skill at exploiting the highly unregulated market.
That year, he also decided it was time to take a big risk. He saved $1 million for his family but used the other million to purchase Film Booking Offices of America (FBO). He moved to Hollywood and began shuffling the finances of the studio, turning it into a shop that could rapidly produce Westerns. When the market became saturated with this model after a year, Joseph decided to cast star actress Gloria Swanson with a celebrated script writer. Swanson was in trouble financially and Kennedy promised to manage her finances if she starred in his movies. They had public spectacle of an affair and he would redo her apartment and pay for fine clothes—using her money!
In 1928, Joe merged his company with a Radio Keith Orpheum and sold his FBO stock for $5 million. In July 1929, he sold all his stock, shorting the market. The Great Depression started two months later. He began putting all his money into real estate.
While Joe was very successful, he was concerned about the effects social instability would have on America. He came to believe that Franklin D. Roosevelt was the only presidential candidate who could repair this worsening trend, and so became a major donor.
Joseph Kennedy grew so friendly with FDR that he was appointed ambassador to Great Britain in his administration. He made FDR promise that if he helped him pass the New Deal he would become first commissioner of the newly-created Securities and Exchange Commission (SEC). Joseph obtained the first license to sell alcohol in America after prohibition.
Watch the rest of the video to learn about Kennedy’s anti-interventionism during the Second World War and how his sons John and Joseph served in the military.
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
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