Rose Blumkin

Rose Blumkin (December 3, 1893 – August 9, 1998) founded the Nebraska Furniture Mart in 1937.[1] She was a renowned businesswoman. 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 Schedrin, 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.

Blumkin immigrated to the United States in 1917. She could not speak English.[2] In 1919, she moved to Omaha, Nebraska, where the Blumkins started a used clothing store.[1]

Career

Blumkin opened the Nebraska Furniture Mart in 1937, selling used furniture.[4] 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.[5]

Blumkin grew the business to become the largest indoor furniture store in America. This caught the attention of Warren Buffett. In 1983, the year Buffett's company purchased a 90% share of the Nebraska Furniture Mart for $60 million.[4][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.[6] 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.[7]

Death

Blumkin is buried in the Golden Hill Jewish Cemetery.

See also

References
  1. 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. Buffett, Warren (1984-03-14). "Warren Buffett's 1983 letter to Berkshire Hathaway shareholders". Berkshire Hathaway. Retrieved 2020-05-26.
  3. "Jewish Heroes and Heroines in America". Retrieved 5 May 2015.
  4. Schroeder, Alice (2009). The Snowball: Warren Buffett and the Business of Life. A&C Black. ISBN 9781408807323.
  5. Fox, Michelle (2019-03-01). "Warren Buffett's model for aspiring business managers — a retail legend known as 'Mrs. B'". CNBC. Retrieved 2020-04-06.
  6. Briggs, Roy (1997). "Oral History Interview. Interviewer Roy Briggs; Interviewee Rose Blumkin". Home Furnishings Hall of Fame. Retrieved 2020-05-26.
  7. Linder, Karen (2012). The women of Berkshire Hathaway lessons from Warren Buffett's female CEOs and directors. Hoboken, N.J.: Wiley. ISBN 9781118227411.
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