Black Jack as a business rescue (history)

[Julien_Olynpic]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

[Oshosondy]

1. Do you believe this story?

There is possibility that it is true. But I can not believe it.

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

I can never do the same. I will look for a better way than to lose more money. The probability of losing more money is higher if I gamble with the money.

3. What would you do if you lost and was there any alternative solution?

I can not do it, not to talk of losing.

[Fivestar4everMVP]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

To your first question, it's a yes, the story is completely true, I think I am actually one of the first persons to post about this story on this forum way back 2020 or 2021, can't possibly go back to my post history to dig that out now, but I will do it some other time when I have good time.

To your second question, to be honest with you, I wouldnt dare do such or take such risk while my eyes are clear.
But on the other hand, faith can make people do crazy things attimes, and also think of it this way, maybe he had no choice, not having another choice or alternative can push you to do what you have to do regardless of the possible result of the outcome, imagine if he hadn't gambled with that money? The company would have gone bankrupt, and if he had gambled and lost it, the gamble also would have gone bankrupt, so, instead of allowing the money to lay there and waste, I think risking it was the best option, and thank God it paid off for the company.

[alani123]

Would be banned from a Vegas table turning in high stakes and utilizing a lot of strategy. In casino rules black jack it is possible to count cards to minimize the chances of losing. Of course it's very boring and also very easy to notice from the side of the casino. So to win 1k on a 25k initial deposit, ok maybe.

But to win like 10 times your initials is indeed too much. I don't think this story is realistic but nevertheless funny. Probably though a complete fwvricstion. Most big companies were started by men who were already rich, but just don't like to admit it it's not an achievement to be born rich.

[_act_]

But to win like 10 times your initials is indeed too much. I don't think this story is realistic but nevertheless funny. Probably though a complete fwvricstion. Most big companies were started by men who were already rich, but just don't like to admit it it's not an achievement to be born rich.

If he used $5000 deposit to win $27000. That is 5.4 times of the initial deposit and not 10 times of the initial deposit. But I also do not believe in something like this because even if it is true, it will only encourage people to gamble and think they can do it too but what will happen to them most are losses.

[Dave1]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

This topic has been discussed here already, How Fedex turned CEO turned company around after a gambling session.

[bakasabo]

For me this looks more like a movie script, because that whole story has that feeling of a happy ending. In modern reality this is totally unreal. A companies bookkeeper would gone nuts if founder withdraws cash from company's bank account, and brings back x5. Such company would have lots of questions and troubles from tax authorities. Since FedEx is rather young company, I doubt that such scheme was available to perform in 70s, specially in States. Just imagine, FedEx, founded in 1970s, already make aircraft deliveries, and cant cover $5k debt.

[Dr.Bitcoin_Strange]

1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

The story might be true or not, but there's no evidence that confirms the authenticity of the story. Probably this story was just made up (I guess) to serve as a motivator for gamblers to feel as if they can archive such great success too. 

Well, regardless of whether the story is true or not, I personally don't like to take this kind of high risks that I am fully aware that the result is not certain, and I don't take risks where my whole asset will get liquidated without me having control over it, to at least stop losing at some point, just like trading. 

Secondly, even if I have to take this kind of risk, I wouldn't do it when I don't have a means to source income again or when I don't have a plan B. 

[ralle14]

1. Do you believe this story?

I've heard crazy gambling stories, so i'll easily believe it's true after hearing it for the first time.

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

I don't have the guts to gamble the fate of my company and it only takes one bad bet to make things worse.

3. What would you do if you lost and was there any alternative solution?

If I somehow gambled the company's funds, i'll have to find a way to pay it out of my pocket, and for the alternative solution, i'll probably try to negotiate with someone.
 

I think I am actually one of the first persons to post about this story on this forum way back 2020 or 2021, can't possibly go back to my post history to dig that out now, but I will do it some other time when I have good time.

Thanks to the thread starter history in the profile page I quickly found the thread you created back in August 2022.

[un_rank]

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

Gambling with the pressure of an entire company and needing to multiply you stake 5 times over will end badly 99% of the time. Statistically, it is a terrible choice to make for anyone, and not a gutsy or bold one.

I'll find alternative solutions without considering visiting a casino.

- Jay -

[Ruttoshi]

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

I wouldn't think of doing the same, talk more of doing it because it is a 50-50 chance. Fredrick Smith has the gut and that brought him luck not smartness.

3. What would you do if you lost and was there any alternative solution?

There is no alternative solution for those who will do the same rather than putting themselves into dip shit because you will wrath in jail. Gambling is not a solution to financial problem.

[Yatsan]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

The story could be true and all but I would probably not do the same thing. However, this doesn't make him a bad example if ever this story is true simply because it worked for him. Life is full of risks indeed and on this instance he succeeded embracing the risk and placing his bet. But as we all know, such thing won't happen to all of us no matter how we wanted to win; only our luck and fates could tell. Keep in mind that he's running a business and if I were him I can't risk that much given that the goal is to save the company. This is just becoming a huge thing because he won but what if he lost? For sure things would be over on his end which is why this is not advisable. Practically, it would be much better to just use the money to start another business that at least would surely generate money for him to recover; this is how a real businessman would think in such situation. But still, congrats to him that he's saved by his luck.

[shield132]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

That story is published on Foxbusiness, I think it's real and not a made-up story from Frederick Smith because there are really many similar cases. For example, one of my friends deposited 1K USD on Bustabit in 2016 and won 7K USD, it helped him to finally cover the house loan or else he would be kicked out of his house. This is purely playing with the luck, it's like playing a Russian roulette. I can't say if I'd risk or not. I think that if I am completely hopeless and have no other way to earn money to save the company, I would risk and play in a casino but if I have a more stable situation, e.g. can take a loan or etc, I wouldn't risk playing with luck. I would more likely risk trading with high leverage.

[bitbollo]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

1 The story can be also legit I would not surprise there is at least a part that is true
2 of course I would Say no. But these are things that you can really answer only when you are involved.
3 a loss should be already one of the options since I should be not surprised by that event. Sincerly I will Just avoid all these chain of bad events and adopt the most conservative apporach.

[Casdinyard]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

Heard about that too one too many times even. With some gambling addicts using it as an excuse why they should keep gambling despite losing all.

I keep telling people that if the FedEx guy lost all his money back then gambling in Las Vegas, he's not toast, he's not a gambler for instance, and he's great at creating stuff especially anything that's business-related, so it would be easy to imagine him being able to create another mind-blowing business idea in the future that would allow him to get back up his feet, and of course he's going to get funding for this because what he may lack in money, he would make up with connections.

So it goes without saying that no, I wouldn't do the same thing if I have a dying business, there's this thing called angel investors that are literally on the prowl as long as you know where to look for them, and that's a better option than gambling the entire future of your business on one night.

[serjent05]

1. Do you believe this story?

The event of winning at the casino might be true but the following story is a bit exaggerate, IMO.  There is this practice of  known people to fabricate story or exaggerate stuff to get the sentiment or attention of people.  So I am somehow hesitant if the experience of winning on the casino really made the company to recover.

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

No, rather than playing in a casino, I would rather sit and brainstorm on how to solve the company problem.

3. What would you do if you lost and was there any alternative solution?

If the fund is lost in gambling,  the only alternative solution is to shut down the company or borrow money from a financial institution.  Selling company shares is an option too but I doubt there will be interest in a failing company.

[wheelz1200]

Today I read an interesting story that is more like a myth. And this semi-myth is associated with the FedEX company, gambling and the founder of this company, Frederick Smith. Unfortunately, I have no way to verify this fact, but maybe someone who knows the history of this corporation well will write about the accuracy of these facts. As legend has it, early in its history, when FedEX was a small company, its business fell on hard times. The moment came when the company's debt began to amount to $24,000 and this amount was needed in order to pay the debt for fuel. However, the company only had $5,000 on its balance sheet. Frederick Smith withdrew this money and went with it to Las Vegas to play Black Jack in a casino. The story goes that Smith won $27,000 at the casino and paid all expenses. In this regard, as usual, I have several questions:
1. Do you believe this story?
2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?
3. What would you do if you lost and was there any alternative solution?

Never heard this story so unsure any of the truth to it.  In terms of would I gamble for the life of my company.  I guess it depends if that is the last and final straw.  Usually there are outlets to help out with an amount that small but again who knows. If you lost it was only $5k to begin with.  Like I said there are loans, personal people you could borrow from, angel investors, etc etc.

[acroman08]

1. Do you believe this story?

I've heard the story before, but as to whether I believe it or not, I am not really sure since there is really no way of knowing whether the owner of Fedex is telling the truth or not.

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

NO! Based on the story that I remember, the guy got extremely lucky. Despite his success story, what he did was extremely risky and stupid.

3. What would you do if you lost and was there any alternative solution?

I'd probably take a loan.

[Wexnident]

~

Pretty sure it's a well known thing. Idk the origin but it probably came from the FedEx owner and well, I see no reason why he'd lie I mean it's not like it helped the company grow or something, ultimately it was a story that ended up being famous AFTER everything was done with and Fedex has grown to what it is today.

I mean as a last desperate measure I guess? I mean it's not like I can do anything else really. Not to mention that iirc they were on a timelimit of sorts as well? And if I lost I guess that's just that. File for bankruptcy, pay for anything that I need and can, work my ass off to pay the rest, and maybe start over if I still have the will.

[Poker Player]

1. Do you believe this story?

I thought I had read that story on the forum and now I see that it is true.

To your first question, it's a yes, the story is completely true, I think I am actually one of the first persons to post about this story on this forum way back 2020 or 2021,

But if you search online you will see it right away:

How Fred Smith rescued FedEx from bankruptcy by playing blackjack in Las Vegas.

2. Regardless of whether this is true, would you do the same? That is, if your company was on the verge of bankruptcy, would you bet the remaining money on casino games?

I doubt very much that I would find myself in such a situation, but for the sake of the plot, if the same thing happened to me as to the protagonist, I would probably do the same. I don't usually play casino games because of the EV-, but that EV- is a long-term certainty. In the short term you can have a stroke of luck that saves you from ruin as in this case.

3. What would you do if you lost and was there any alternative solution?

If there was an alternative solution to begin with, I wouldn't have gone to the casino to gamble what little I had.