Financial consultant Miguel Ángel Lacoma tells us this story to "know who you're selling to, lest they not be able to pay you."
The year was 1815.
The Rothschild family already had banking businesses throughout much of Europe.
Its main headquarters were in London, England.
But at that time there was a certain Napoleon Bonaparte, trying to build his empire for the second time. And the English didn't like this very much.
So England sought allies on the continent (again) to put an end to Napoleon's imperial dreams.
Holland, Prussia (of course!), Austria, and perhaps a few others joined the English to teach the French a lesson at Waterloo.
And boy, did they give it to her.
Napoleon ended up imprisoned on an island in the South Atlantic. It was his final defeat.
Before the final battle, no one knew what was going to happen. Napoleon was one of the greatest military leaders in history, and at that time he commanded a great deal of respect (not to say fear) from his enemies.
The English too.
The future of the contenders depended on the outcome of the battle, and by then European states had already begun issuing debt.
It was probably to pay for the war, but I don't know, they didn't tell me back then.
The losing side would have serious difficulties repaying its debt, so its bonds would be good for little more than starting a fire.
From London, English investors were closely following the outcome of the battle.
But of course, it was 1815 and there was no WhatsApp to immediately send the result of the battle.
A messenger on horseback from Waterloo to the English Channel. A ship to England, and once the message is disembarked, another ride on horseback to London.
In total, they say it took about 3 days for the news to arrive.
But someone was faster, the Rothschild of the day. At the time, a certain Nathan.
He had the brilliant idea of having agents in the battle who would inform him immediately by means of carrier pigeons.
A carrier pigeon apparently takes much less than three days to travel from Waterloo to London. I haven't verified it, but I imagine it's true.
The following happened.
Upon receiving the news, Nathan Rothschild put all his English debt securities up for sale.
The other investors sensed that Rothschild had inside information, and that Napoleon had defeated the coalition.
English bonds would be worthless.
So they imitated Rothschild and started selling.
The English bond plummeted.
Then, other secret Rothschild agents on the London Stock Exchange began buying the bonds at bargain prices.
After 3 days, news arrived of Napoleon's defeat.
The Rothschild family had bought virtually all the British bonds at bargain prices. Their value skyrocketed. Upwards, of course.
This is how their fortune was consolidated, and today, two centuries later, they remain one of the richest, most powerful, and most influential families in the world.
What was the key to this brilliant financial operation?
Information. Information is power, and having it can strengthen the company.
You need to know who you're selling to, otherwise they might not be able to pay you.
