The Greatest Capitalist Who Ever Lived summary

In 1956, the younger Watson’s father died. Watson, already the president of IBM, also became its CEO. From now on, he’d be in charge of plotting the company’s course. 

There were two critical questions he needed to answer. One: What purpose did IBM serve? Two: What unique products could it offer? Under the leadership of his father, IBM had developed into a cult of personality reminiscent of twentieth-century dictatorships. The company’s offices were decorated with portraits and the sayings of its “dear leader,” and employees even sang songs praising their boss. The company’s product line, meanwhile, primarily centered on electromechanical punched-card systems – a product that spoke to what Watson Sr. had thought was necessary and useful.

Innovation wasn’t anywhere close to the top of IBM’s agenda under the tenure of Thomas Watson Sr. When breathless engineers told him about the possibilities of modern computer technology, he reportedly scoffed and said that no one would find more than five Americans willing to buy a computer. IBM, in short, was deeply resistant to the computer revolution. 

That might have proved fatal. Ironically, it was Watson Jr.’s antipathy toward his father that ended up saving IBM. Gaining self-confidence through his service in the Army Air Corps during World War II, Watson returned to IBM with a vision drastically different from his father’s. Once he became CEO, he began to implement that vision. Under his tenure, IBM pivoted to computing, challenging the culture of “yes men” his father had cultivated.

The introduction of the IBM System 360 on April 7, 1964, stands as a defining moment in the history of computing. It was also undoubtedly the greatest triumph enjoyed by IBM – and its CEO. 

The 360, a series of fully intercompatible computers, forever changed the computing landscape and the way businesses utilized technology. The System 360 was as bold as it was revolutionary – getting it off the ground cost no less than $5 billion, a front-loaded investment unheard of in the tech industry at that time. 

In 1971, Thomas J. Watson Jr. stepped down from his leadership role at IBM following a heart attack, on the advice of his doctor. His departure from IBM, however, didn’t mark the end of his influential career. Watson later embarked on a journey of public service and adventure. In 1979, he was appointed by President Jimmy Carter as ambassador to the Soviet Union, a position he held until early 1981. This diplomatic role followed his earlier involvement in national defense policy as chairman of the General Advisory Committee under President Kennedy, where he advised on America’s nuclear defense strategy.

Watson’s life outside the realms of technology and diplomacy was equally dynamic. He was a passionate sailor and pilot, with a deep love for exploration and adventure. His dedication to sailing was evident in his ownership of seven sailboats, all named Palawan, with the last acquired in 1991. In one notable adventure, he sailed one of his Palawans up the northern coast of Greenland, farther than any non-military ship had previously ventured. This feat earned him the New York Yacht Club’s highest award. His exploratory spirit also led him to trace the route of Captain Cook across the Pacific.