Rose Blumkin
Rose Blumkin at the Nebraska Furniture Mart in 1977
Born
Rose Gorelick

(1893-12-03)December 3, 1893
Shchedrin, Bobruysky Uyezd, Minsk Governorate, Russian Empire (prior to 1917). Shchedrin, Belarus (post 1991).
DiedAugust 9, 1998(1998-08-09) (aged 104)
Omaha, Nebraska
OccupationBusiness person

Rose Blumkin (née Gorelick; December 3, 1893 – August 9, 1998) was an American businesswoman who founded the Nebraska Furniture Mart in 1937.[1] Businessman Warren Buffett said of her, "One question I always ask myself in appraising a business is how I would like, assuming I had ample capital and skilled personnel, to compete with it. I’d rather wrestle grizzlies than compete with Mrs. B and her progeny. They buy brilliantly, they operate at expense ratios competitors don’t even dream about, and they then pass on to their customers much of the savings.[2]

Her credo, according to her obituary in the New York Times was "Sell cheap, tell the truth, don't cheat nobody."[1]

Early life

Blumkin was born in 1893 as Rosa Gorelick to a Jewish family[3] in Shchedrin, a village near Babruysk in present day Belarus. She was one of eight children of Solomon and Chasya Gorelick. Her father was a rabbi and her mother ran a grocery store.[1] When she was twenty, Rose married Izya (Isadore) Blumkin.[4]

Rose immigrated to the United States in 1917. She arrived in Seattle unable to communicate in English and was transferred by the American Red Cross to Fort Dodge, Iowa, where her husband was living.[2] Two years later, in 1919, the couple moved to Omaha, Nebraska where they started a used clothing store.[1][4]

Career

Blumkin opened the Nebraska Furniture Mart in 1933, selling used furniture.[5] Known as "Mrs. B.", she was in her mid-40s when she opened the business in the basement of her husband's store with an investment of $500 ($9,171.30 adjusted for inflation in 2022).[6]

Blumkin grew the business to become the largest indoor furniture store in America. This caught the attention of Warren Buffett. In 1983, Buffett's company purchased a 90% share of the Nebraska Furniture Mart for $60 million (~$158 million adjusted for inflation in 2022).[5][2]

In 1989, six years after selling 90% of her company to Berkshire Hathaway, Blumkin retired, only to come out of retirement in three months to open up a rival store. It was called "Mrs. B's Clearance and Factory Outlet" and was situated directly across the street from the Furniture Mart. It became profitable by 1991.[1] Buffett acquired the business in 1992.[1] Blumkin continued to be involved in day-to-day operations until shortly before her death at the age of 104.

Recognition

Blumkin was active as a philanthropist.[7] The Rose Blumkin Performing Arts Center is named for her. She was also a large donor to the Omaha Jewish Community Center. She received honorary degrees from New York University and Creighton University.[4]

Death

Rose Blumkin died at the age of 104 on August 9, 1998, as a result of cardiac issues and chronic bronchitis[8]

Mrs. Blumkin is buried in the Golden Hill Jewish Cemetery.

References

  1. 1 2 3 4 5 6 Feder, Barnaby J. (August 13, 1998). "Rose Blumkin, Retail Queen, Dies at 104". The New York Times. Archived from the original on February 3, 2017. Retrieved February 3, 2017.
  2. 1 2 3 Buffett, Warren (March 14, 1984). "Warren Buffett's 1983 letter to Berkshire Hathaway shareholders". Berkshire Hathaway. Retrieved May 26, 2020.
  3. ↑ "Jewish Heroes and Heroines in America". Retrieved May 5, 2015.
  4. 1 2 3 Linder, Karen (2012). The women of Berkshire Hathaway lessons from Warren Buffett's female CEOs and directors. Hoboken, N.J.: Wiley. ISBN 9781118227411.
  5. 1 2 Schroeder, Alice (2009). The Snowball: Warren Buffett and the Business of Life. A&C Black. ISBN 9781408807323.
  6. ↑ Fox, Michelle (March 1, 2019). "Warren Buffett's model for aspiring business managers — a retail legend known as 'Mrs. B'". CNBC. Retrieved April 6, 2020.
  7. ↑ Briggs, Roy (1997). "Oral History Interview. Interviewer Roy Briggs; Interviewee Rose Blumkin". Home Furnishings Hall of Fame. Retrieved May 26, 2020.
  8. ↑ "Rose Blumkin, 104, dies; was operator of Omaha Furniture Mart". The Buffalo News.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.