How Blackjack Saved FedEx From Bankruptcy

In the fast-paced world of overnight deliveries, FedEx stands out as a global powerhouse, delivering over 3 billion packages annually to 220 countries. However, the journey to success was far from smooth for founder Frederick Smith. In the early days, facing financial desperation, Smith turned to an unconventional source: gambling in Las Vegas.

Back in 1962, while studying economics at Yale University, Smith penned a last-minute paper on the automation of society and goods transportation. Despite uncertain academic results, this paper became the foundation of FedEx's revolutionary concept. In 1971, armed with $4 million of inheritance and $80 million in loans, Smith founded the company with a vision to transport small, essential items by plane for efficiency.

The initial years proved challenging, with rising fuel costs pushing FedEx into millions of dollars of debt. Rejected funding pitches added to the turmoil, bringing the company to the brink of bankruptcy. When funds dwindled to a mere $5,000, Smith took a daring leap—flying to Las Vegas to play blackjack with the company's last resources.

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