#59 Howard Hughes The Definitive Biography of the First American Billionaire

In this episode, David, the host of Founders podcast, delves into the enigmatic life of Howard Hughes, the first American billionaire. Hughes, a film director, producer, aviator, and entrepreneur, amassed a fortune and became the subject of fascination due to his wealth and secretive nature. Despite his lack of a private diary, Hughes's 8,000 pages of memos, letters, and notes, along with recently declassified FBI and CIA files, offer a glimpse into his complex psyche. David discusses Hughes's life, from taking over his father's company, Hughes Tool Company, to his ventures in Hollywood and aviation, highlighting his obsessive-compulsive disorder and eventual descent into reclusion and mental illness. The episode also touches on Hughes's manipulative business practices, including bribery and crony capitalism, contrasting his public persona with his private struggles. David expresses his frustration with Hughes's contradictory character and his impact on the history of entrepreneurship.

• Howard Hughes was a multifaceted individual with roles as a film director, producer, test pilot, inventor, investor, and entrepreneur.
• Considered the richest man in America, his wealth was in the billions when millionaires were scarce.
• Hughes crafted a facade that obscured his true self, which required extensive research to uncover.

"He was a film director, a producer, a test pilot, inventor, investor and entrepreneur. And for most of his life, he was considered to be the richest man in America."

This quote highlights the many roles and the significant wealth of Howard Hughes, painting a picture of his public persona and success.

• The story of Hughes was pieced together through the efforts of numerous professionals and close associates.
• Hughes' own writings, including memos and letters, were pivotal in understanding his personal thoughts.
• Declassified FBI and CIA files, as well as legal documents, provided additional insights into Hughes' life.

"To unravel his story required the help of hundreds of journalists, lawyers, doctors, investigators, archivists, librarians, acquaintances and lovers, each contributing pieces of the grand puzzle of Hughes."

This quote describes the extensive and collaborative research process that was necessary to construct a comprehensive narrative of Howard Hughes' life.

• The book aims to dismantle the facade Hughes built and explore his complexities.
• It is positioned as a unique biography that offers an authentic look into Hughes' life, one that he could have only told himself.

"The result of years of research, this book tears away the facade that Hughes worked his entire life to create, and reveals a man so complex that during his life, he remained in an illusion, even to the few who knew him best."

This quote emphasizes the depth of the biography in revealing the true complexities of Hughes, suggesting that even those closest to him did not fully understand him.

• There is a disconnect between the public's extensive exposure to Hughes and their understanding of him.
• Despite the abundance of stories, there remains a sense of not truly knowing Hughes.

"Yet with all that we have read or heard, we have the vague feeling that we don't really know all there is to know about this man."

This quote captures the public's frustration and the enigmatic nature of Hughes, despite the widespread information available about him.

• David's podcast, "Founders," focuses on understanding the individuals behind companies and extracting useful ideas from their experiences.
• The podcast often highlights positive lessons, but in Hughes' case, it will also discuss what not to do or emulate.

"Every week, I read a biography or an autobiography or a book about somebody that's built a company, and I just try to understand the person behind it, pull out ideas that we can use in our own lives."

This quote outlines the podcast's goal of deriving actionable insights from the lives of entrepreneurs and business figures.

• Hughes suffered from mental illness, specifically obsessive-compulsive disorder, but refused further diagnosis.
• His wealth enabled him to have private doctors who did not prioritize his care, leading to a decline in his mental and physical health.

"Howard Hughes suffered, especially later on his life, from severe mental illness."

This quote introduces the topic of Hughes' mental health struggles, which significantly impacted his later life.

• The focus of the podcast will be on Hughes' life up to about the age of 40, before his decline.
• Hughes' early life showed signs of entrepreneurial tendencies and a passion for aviation.

"I'm going to focus on his early life because I think that's important, because up until about time, he's from 19, when he takes over his father's company, to about 40."

This quote indicates the podcast's intention to concentrate on the formative and more productive years of Hughes' life.

• Howard Hughes Sr. was a significant figure in his own right, having built a highly successful company.
• The book "Hughes" also explores the life of Howard Hughes Sr., shedding light on his contributions and influence on his son.

"The book that I really wanted to read, the person that I think is overlooked, who is extremely important because he built one of the most successful companies ever, is his father, Howard Hughes senior."

This quote acknowledges the importance of Howard Hughes Sr. and the desire to learn more about his entrepreneurial journey.

• Howard Hughes Sr. invented a revolutionary drill bit, leading to the establishment of Hughes Tool Company.
• The company's success was built on leasing the drill bits rather than selling them, ensuring a continuous revenue stream.

"Hughes Tool company was founded in 1908... and without this invention, we would never know the name of Howard Hughes, Jr."

This quote links the success of Hughes Tool Company to the legacy of Howard Hughes Jr., suggesting that the company's achievements were foundational to his future endeavors.

• At 19, Howard Hughes Jr. gained control of his inheritance and became the sole owner of Hughes Tool Company.
• He strategically removed the "disabilities of youth" through the court to assert his independence.

"Howard began a detailed and organized effort to take control of both his life and his money."

This quote highlights Hughes Jr.'s strategic thinking and determination to take charge of his life and assets at a young age.

• Hughes Jr. discovered his passion for aviation early on, which would shape his future endeavors.
• Despite poor academic performance, his focus on aviation was unwavering.

"As for his son, he was exhilarated and inspired by the sensation of flying, and he knew he had found his calling in life."

This quote captures the moment Hughes Jr. identified his passion for aviation, setting the stage for his future achievements in the field.

• Hughes Jr. was given an extravagant allowance, which may have contributed to a sense of entitlement.
• His wealth allowed him privileges and opportunities that were uncommon for his age.

"His allowance was $5,000 a month at a time when $5,000 represented the median annual income for the average family of four."

This quote illustrates the extraordinary level of financial support Hughes Jr. received from his family, highlighting the potential impact on his character development.

• Howard Hughes was known for his bizarre personality and a history of joyful holiday celebrations with his family.
• As an adult, he ceased celebrating holidays, which may hint at childhood trauma or other personal issues.
• Hughes was adept at understanding the importance of appearances and was manipulative, convincing a 19-year-old Ella Rice to marry him against her will due to family pressure.
• After moving to California, Hughes neglected his wife Ella, sending her back to Houston and ignoring her, indicating a disregard for others' emotions and opinions.

"The adult Hughes celebrated none ever again. He starts doing that really early, so who knows? We can't really psychoanalyze this guy, but that sounds like some kind of childhood trauma or who knows what it was, actually?"

This quote emphasizes the shift in Hughes's behavior from a traditional family man to someone who abandoned familial celebrations, possibly due to unresolved personal issues.

• Hughes convinced Ella Rice to marry him through manipulative means, reflecting the societal norms of arranged marriages in Houston at the time.
• He moved to California, effectively abandoning Ella by sending her back to Houston and ignoring her desperate attempts to contact him.
• His behavior towards Ella and others was dismissive and self-centered, treating people like tools or actors in his personal play.

"When Hughes neither arrived in Houston nor telephone, Ella sent telegrams, several dozen of them, each one more desperate than the last, attempting to understand how their honeymoon had dissolved into, first, separate bedrooms and then separate states."

This quote illustrates the breakdown of Hughes's marriage with Ella, highlighting his neglect and lack of communication, leading to their eventual divorce.

• Hughes initially failed in the movie business but was motivated to succeed to prove his uncle wrong.
• He met actor Ralph Graves on a golf course and impulsively financed a film with $40,000, a decision that resulted in a costly failure with the film "Swell Hogan."
• Through this experience, Hughes learned the importance of being involved in production, taking copious notes and questioning the methods of those on set to educate himself.
• Despite his initial failure, Hughes's subsequent films were successful, earning significant profits and winning awards, proving his doubters wrong.

"When Graves, this is the actor, told Hughes that he needed $40,000 for the film budget, the gullible texan never flinched as he took out his checkbook and gave the actor the entire amount."

This quote shows Hughes's naivety and willingness to invest heavily in the film industry without prior experience, which eventually led to a significant learning experience.

• Inspired by Charles Lindbergh's transatlantic flight, Hughes developed a passion for aviation.
• At 21, Hughes pursued flying, hiring a pilot to teach him, and began to take control of every aspect of his projects, reflecting his attention to detail and desire for control.
• His management style was hands-on, often leading to conflicts with directors and employees, culminating in Hughes taking over directorial roles himself.

"On May 20, 127, Charles Lindbergh successfully piloted the first nonstop, solo transatlantic flight in his single engine plane. It was a flight that captivated an envious Hughes, who eagerly sought details of the journey and forced him to squarely face his last goal."

This quote captures Hughes's ambition to excel in aviation, setting the stage for his future achievements and the development of his controlling management style.

• Hughes experienced several plane crashes, the first during the filming of "Hell's Angels," resulting in a coma and serious injuries.
• His wife Ella's concern for his well-being and suggestion to hire another director for "Hell's Angels" led to a rift in their marriage, ultimately leading to divorce.
• Hughes's reaction to criticism or suggestions was to eliminate those individuals from his life, a trait that extended to his professional relationships as well.

"Trapped inside the cockpit, he was pulled to safety by his crew and rushed to a hospital, where he was in a coma with a crushed cheekbone and numerous lacerations."

This quote highlights the severity of Hughes's first plane crash and the physical consequences he faced, which also impacted his personal life and marriage.

• Hughes believed that everyone has a price and operated under this principle, engaging in crony capitalism and bribery to achieve his goals.
• His business dealings often involved bribing politicians, manipulating contracts, and evading taxes through questionable means, such as setting up sham companies.
• Hughes's behavior has implications for the perception of capitalism and the importance of distinguishing between ethical entrepreneurship and crony capitalism.

"Hughes had learned from his father that every man has his price. So one of his most, Hughes'most famous quotes is that every man has his price. If that wasn't true, men like me wouldn't be able to exist."

This quote encapsulates Hughes's cynical view on human nature and his justification for engaging in unethical business practices, which he believed were necessary for his success.

• Hughes's obsessive-compulsive disorder and addiction to painkillers, exacerbated by his plane crashes, led to a decline in his health and appearance.
• He worked nonstop, neglecting rest, sleep, and proper nutrition, which took a toll on his physical well-being.
• Despite his deteriorating health, Hughes continued to work at an unmatched pace, producing multiple films simultaneously and refusing to delegate responsibility.

"He'd work for, like, 48 hours of time, not eat, not sleep. Very erratic behavior."

This quote illustrates Hughes's extreme work ethic and disregard for his health, contributing to his rapid aging and physical decline.

• Hughes experienced financial difficulties in 1932, becoming broke and deeply in debt due to the Great Depression's impact on his businesses.
• Unfamiliar with the state of his finances, Hughes was forced to economize when he realized he could no longer spend freely.
• His reaction to financial troubles was to retreat from the public eye and the film business, leading to a brief period of employment as a copilot with American Airlines.

"Hughes ended 1932 facing an even bigger devastation. He was out of money, totally broke. Moreover, he was deeply in debt."

This quote conveys the severity of Hughes's financial crisis, marking a significant turning point in his life and forcing him to confront the reality of the economic downturn.

• The end of Prohibition in 1933 led to an unconventional turnaround for Hughes Tool Company, which began brewing beer to offset losses from the depression.
• The success of the beer and the rebound in the oil industry helped return the company to profitability, although Hughes played no part in this recovery.

"With the end of Prohibition in 1933, they're naming this guy that was running Hughes tool in Houston. His name is Colonel Kudell. Colonel Kudell had opened the golf brewing company inside part of the tool company in an effort to offset the business falloff from the depression."

This quote details the unexpected means by which Hughes Tool Company regained profitability during the Great Depression, highlighting the ingenuity of those managing the company in Hughes's absence.

• Howard Hughes is often seen as a legendary figure, but the reality of his contributions is complex.
• He founded Hughes Aircraft company, which was successful, but he wasn't actively managing it.
• Hughes' success was partly due to bribing officials for preferential treatment.
• The engineers at Hughes Aircraft were responsible for the actual technology and experimentation.
• Hughes took risks as an aviator and had ideas about product development, but others did the work.

"It's hugely successful. But to the degree that I would say that he's responsible for the success, in the sense, is the degree to which he bribed officials to get preferential treatment."

This quote highlights that while Hughes Aircraft was a successful company, Hughes' role in its success was not straightforward, as it involved unethical practices such as bribery.

• Hughes caught syphilis and worked tirelessly on the D-2 plane, focusing on its aerodynamics and test flights.
• His work schedule was intense, with little time for socializing, and he often worked continuously for long hours.
• During World War II, Hughes redirected his energy to creating a flexible ammunition line for fighter planes, which is still in use today.
• Despite having the option to lead a leisurely life, Hughes chose to reinvest profits into real technology.

"He worked 48 hours straight without sleeping or eating, leaving the darkened basement of the office."

This quote exemplifies Hughes' intense work ethic and his dedication to his projects, often at the expense of his health and social life.

• Henry Kaiser was a prolific industrialist who revolutionized shipbuilding during World War II.
• Kaiser and Hughes partnered to create the Hercules plane to transport heavy machinery by air instead of by sea, which was vulnerable to enemy attacks.
• Hughes Aircraft had excess engineers, making it an ideal partner for Kaiser's ambitious project.
• Despite initial communication difficulties, the partnership between Kaiser and Hughes was eventually formed.

"Henry J. Kaiser... revolutionized the shipbuilding industry with an assembly line that was capable of building an entire military vessel in four and a half days."

This quote provides context on Kaiser's innovative contributions to the war effort and his capacity to conceptualize and execute large-scale projects, which led to the collaboration with Hughes.

• Hughes was possessive over projects and people, with an inability to let go of control.
• He experienced a plane crash that led to a significant change in his behavior, becoming more isolated and shedding material possessions.
• His behavior became increasingly erratic, with signs of strain and a nervous breakdown.

"Once he has become involved with a project or a person, he cannot let them get away from his control."

This quote from Faith, Hughes' girlfriend, encapsulates Hughes' obsessive nature and need for control, which was a self-destructive element of his character.

• Hughes survived multiple plane crashes, with the fourth crash being particularly severe and leading to his addiction to codeine.
• He was investigated by the government for misuse of funds, leading to a cat and mouse game to avoid subpoena.
• Hughes' celebrity status allowed him to charm the public and use his influence to sway opinions.

"Morphine injections were administered at the first sign of discomfort."

This quote indicates the beginning of Hughes' dependence on pain medication following his plane crash injuries, which would eventually become a full-blown addiction.

• Hughes was investigated for not delivering on government contracts during the war.
• He used his celebrity status and public support to challenge the government's accusations.
• Hughes' testimony before a Senate committee was a spectacle that garnered public applause and support.

"Senator Brewster told me, in so many words, that if I would agree to merge TWA with Pan am and go along with his scheme for community american airline, there would be no further hearings in this matter."

This quote reveals the political maneuvering behind the scenes, with Senator Brewster allegedly offering to drop the investigation if Hughes complied with a merger beneficial to Pan am, which Hughes resisted.

• Despite his descent into reclusiveness and odd behavior, Hughes' companies continued to perform well.
• He managed his empire through intermediaries, while his personal life became increasingly eccentric and isolated.
• Hughes' approach to problems often involved using money to find solutions, reflecting a belief that everything had a price.

"Every man has its price, Hughes said. If they didn't, people like me couldn't exist."

This quote reflects Hughes' cynical view of the world and his reliance on financial influence to navigate challenges, often crossing into corruption.

The detailed study notes encapsulate the complex figure of Howard Hughes, highlighting his intense work ethic, innovative contributions during World War II, obsessive personality traits, decline into drug addiction, and controversial battles with the government. Despite his personal struggles, Hughes' impact on aviation and technology remains significant, with his companies thriving even as he retreated from the public eye.

• Howard Hughes exhibited extreme behavior, living in a darkened hotel suite, avoiding sunlight, and delighting in his power.
• He spent a significant portion of his life naked, watching movies repeatedly, and consuming only milk and chicken.
• Hughes' doctor, Dr. Verne Mason, suggested declaring him incompetent due to his deteriorating mental state.
• Despite the doctor's concerns, those around Hughes did not act, likely due to their economic interests in maintaining the status quo.
• Hughes was surrounded by people who indulged his requests to profit from him, indicating a lack of genuine concern for his well-being.

"At this time, he's living in a darkened suite at Beverly Hills hotel, doesn't let sunlight in, and he says, as far as Hughes was concerned, it was the triumph of leverage coercion, and he delighted in the power." "So the doctor says, noah, I think it's time has come for you to have Howard declared incompetent."

These quotes illustrate Hughes' state of living—seeking darkness and power—and the concern expressed by his doctor about his mental capacity, suggesting the need for a legal declaration of incompetence.

• Hughes reflected on his relationship with his father, noting a lack of warmth and a forceful nature in their interactions.
• He admitted to not being as loved or skilled in winning people over as his father was.
• Hughes expressed a profound interest in science rather than people, which he identified as a defining aspect of his character.

"My father never suggested that I do something, Hughes told writer Dwight Whitney in the 1940s. He just told me he shoved things down my throat and I had to like it." "I guess what I am tremendously interested in is science."

Hughes' quotes reveal his perception of his father's influence and his own personal interests, highlighting the contrast between his father's interpersonal skills and his own scientific inclinations.

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The quotes stress the importance of audience support for ad-free content and the perceived value of investing in high-quality, trustworthy content.

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These quotes highlight the host's dedication to note-taking and the distinction between self-improvement through learning from others and self-help, emphasizing the practical application of entrepreneurial insights.

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These quotes convey the host's belief in the transformative power of entrepreneurship and the equalizing effect of the Internet on business opportunities.

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These quotes are part of the host's appeal to the audience, underscoring the value of the podcast and the benefits of supporting it.