17th August, Rafal Tudela’s story begins at 5:35
Taking The First Step, Enjoying Chess & Earning 2 Million Dollars
“Chess teaches you to have strategic tactics,” he says “You learn to see things as a game, I rarely lose” said Rafael Tudela, billionaire oil speculator.
I came across this story on some of my favourite websites, even a book that I was reading who’s name I vaguely remember. But the story of how he made 2million dollars stuck. Two things could possibly sum up his suave way of doing business:One to take the ‘first step’ and second to have fun while doing it!
I’m not sure how accurate the story is, and there is no way to verify – but the story is indeed an amazing one, read on…
An excerpt from What They Don’t Teach You At Harvard Business School http://www.amazon.in/What-Teach-Harvard-Business-School/dp/1861975643/ref=sr_1_1?ie=UTF8&qid=1407739501&sr=8-1&keywords=what+they+dont+teach+you+at+harvard:
The author of the books talks about meeting a Venezualan oil and shipping businessman called Rafael Tudela. In the mid 1960’s Tudela owned a glass manufacturing facility and was soon about to be re-introduced into the world on oil. As a petroleum engineer by training he longed to be in the oil business.
He learnt that Argentina was looking for $20million dollars worth of Butane gas. He went to see if he could secure the contract, he found competitors such as Shell oil and British petroleum bidding for the project. At this point our middle class value system would have told us to exit, quit and continue doing what is ‘safe’.
However, Tudela’s attitude was ‘What can I do to get an edge over my competitors?’ and ‘Once I get the contract we will figure out how to get the gas, let’s take the first step’. Amazing isn’t it?
perhaps one of the most underrated skills in the world is perseverance. This is very much like trading, you need patience, perseverance and a lot of gut to keep on going no matter what.
Getting The Edge
Argentina had an oversupply of meat, and he used this to his advantage and told the Argentine government that if they let him supply $20 million of Butane to them then he will BUY $20million worth of meat. Amazingly, he got the contract.
Tudela then went to Spain who’s government was very embarrassed about closing down a major shipyard. Tudela said he will order a 20million super tanker to be built if they bought 20 million worth of meat from him.
Finally he went to America and told the sun oil company that if they charter his 20 million super tanker, he will buy 20 million worth of butane gas from them.
He made money small difference between the contracts, but my point for this story was not the fact that he made 2 million, but the mindset which is missing among so many traders.
Ask yourself this question today, what is your edge?