Lessons From Our Forerunners

Gary and Jim Milgard are the best businessmen in American history that you have never heard of.

The two brothers took a small family-owned glass shop in Tacoma, Wash., and methodically turned it into the best and likely most profitable window company in the U.S. during their tenure, which began in the 1950s.

I met the Milgards in 2000 when they hired Morgan Stanley (MS - commentary - Trade Now) to sell their company and I was assigned to manage the day-to-day aspects of the divestiture process. Gary and Jim made an immediate impression on me and in nine short months gave me a veritable lifetime of lessons for which I am in perpetual debt to them.

The Milgards quite literally embodied the fulfillment of the American Dream. Enormous, self-made success combined with deep-rooted humility and gratitude. Not only great capitalists, Gary and Jim were men cut from Madison's image: virtue and self-interest working in tandem to create a superior outcome for them and the families of their employees.

As the divestiture process progressed, I would call Gary routinely and provide him with weekly and sometimes daily updates. It was during these calls that Gary invariably provided valuable words of wisdom and I started taking notes in a business journal that I have kept over the years. Whether Gary noticed or not, the more he shared with me, the more I called him. I was like a sponge trying to soak up as much insight as possible from him.

Gary sadly passed away four years ago this month. As we go into the Fourth of July weekend and celebrate the accomplishments of American patriots, I have pulled out some of my Milgard notes out of the vault to share with you.

Whatever your business, your people should be your first order of business. Fairness to your employees creates more opportunities for all. It also avoids unnecessary, negative consequences of mistrust and greed. When our corporate titans are paid ungodly amounts of money, they set the standard for their organizations and the seeds are sewn for a culture of greed at nearly every level. We are living with the consequences of a bitter harvest of massive, unbridled greed. There truly is no loyalty among thieves.

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Jim Gulbrandsen is a managing partner of Silvertree LP. Gulbrandsen was previously a portfolio manager at Wasatch Advisors, in Salt Lake City. He began his Wall Street career at JPMorgan and later joined Morgan Stanley's mergers and acquisitions department in New York. Gulbrandsen left Morgan Stanley and successfully managed a fundamental-based long/short equity hedge fund in San Francisco. He received a bachelor of arts in economics from Brigham Young University. Gulbrandsen is an outdoor enthusiast and enjoys competitive road cycling and skiing. He is fluent in Portuguese and Spanish. Any comments written by Mr. Gulbrandsen, whether general in nature or specific to individual stocks, do not constitute investment advice to readers.

Comments made by Gulbrandsen do not represent investment advice in any form. Positions disclosed, long or short, may change at any time and without any notice.