The Guggenheim Philosophy of Increasing Capital Value
Haldeman: Since the Guggenheims took it over, they didn't take a dividend
out for the first twenty-six years. They plowed everything back
to build up the property. If you take that period of time from
the beginning until about "55 or '56--I had somebody make a
study for me--the return on the amount of money invested in
dollars (not in present value) was something like 6 percent a
year average. The Guggenheims were people like that, who would
plow back and build a business. They weren't interested too
much in the profit; they were interested in increasing the
capital value. It's a different philosophy. Today you have the
present value of money, and you want to get your cash out, get
it back in, and roll it over again. Who's right and who's
wrong, I have no comments on.
Swent: Just different.
Haldeman: It's entirely different.
Solomon Guggenheim, Presdent of Braden Copper from the time Kennecott purchased it in 1915:
Solomon Guggenheim with the model of the proposed Guggenheim Museum in 1945:
Index to Haldeman Interview
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