Jim Cramer looks back on the legacy and impact of FedEx founder Fred Smith

Key Concepts:

• Fred Smith: Founder of FedEx, Marine Corps veteran, visionary.
• Overnight Delivery: The core concept and service pioneered by FedEx.
• Venture Capital: Funding source used to start FedEx.
• Globalist: Someone who believes in the unifying power of commerce.
• American Battle Monuments Foundation: Charity supported by Fred Smith.

1. Fred Smith: The Man and His Vision

• Fred Smith, the founder of FedEx, passed away. He was a Yale graduate, a decorated Marine veteran (Silver Star, Bronze Star, two Purple Hearts), and a visionary who revolutionized mail delivery with the concept of overnight mail.
• While at Yale, his economics thesis on overnight delivery was deemed impractical by an English professor.
• After graduating, he served two tours in Vietnam, driven by a sense of duty and love for his country.

2. The Founding and Near-Failure of FedEx

• In 1971, Fred Smith started FedEx using his inheritance and venture capital.
• The company faced near-bankruptcy due to rising fuel costs.
• Smith famously saved the company by winning over $25,000 playing blackjack in Las Vegas.

3. Fred Smith's Character and Business Acumen

• The speaker knew Fred Smith for over two decades, describing him as a regular guest on his show "Kudlow and Cramer."
• He was considered the show's chief economist, trusted by both Larry Kudlow and the speaker.
• Fred Smith was described as an "admitted globalist" who believed in the unifying power of commerce.
• He recognized the need for automation and the use of robots due to labor shortages.

4. Personal Anecdotes and Admiration

• The speaker recounts attending an Eagles-Steelers game with Fred Smith, where he observed Smith's pride in his children, particularly his son Arthur Smith, the Steelers offensive coordinator.
• The speaker's wife, who is typically critical of business leaders, admired Fred Smith for his humility.
• Smith carried a picture of his Marine outfit in his wallet and spoke of the men who died for their country.
• He expressed pride in the speaker's father, a World War Two veteran, and researched his service through the American Battle Monuments Foundation.

5. Fred Smith's Legacy and Impact

• Fred Smith is remembered as someone who turned a dream into reality, creating a genuinely useful service that changed the world.
• He remained humble, always introducing himself as "someone from FedEx," not as the founder or CEO.
• The speaker emphasizes that FedEx started as a college thesis with a mediocre grade, highlighting Smith's perseverance and execution.

6. Charitable Contributions

• Fred Smith was "monumentally charitable" and supported various causes, including the American Battle Monuments Foundation.
• The speaker intends to continue donating to this charity in Smith's honor.

7. Notable Quotes and Statements

• "Most famous people put their pants on one leg at a time, just like anybody else." - Implies Fred Smith's humility.
• Regarding his service in Vietnam: "Going to Vietnam was what you did because you loved the country." - Illustrates his sense of duty.
• He always introduced himself as "someone from Fedex, not the founder, the former CEO or the CEO. Just another worker." - Highlights his humility.

8. Synthesis/Conclusion

Fred Smith was a remarkable individual who combined military service, business acumen, and personal humility. He transformed the logistics industry with FedEx, demonstrating that a seemingly impractical idea could become a world-changing reality. His legacy extends beyond business to his service to his country, his charitable contributions, and his dedication to his family. He will be remembered as a visionary, a patriot, and a genuinely good person.