The Rise and Fall of Henry Blodgett: From Wall Street to Business Insider
Henry Blodgett is a well-known name in the American business and journalism world, with a net worth of approximately $50 million. He rose to prominence as the founder of the website Business Insider, now known as insider.com. However, his journey to success was not without its share of ups and downs.
Early Life and Education
Henry Blodgett was born in 1966 in Manhattan, New York City. He attended Phillips Exeter Academy, a prestigious independent school in New Hampshire, before earning his bachelor’s degree in history from Yale University. Following his graduation, Blodgett ventured into various fields, including teaching English in Japan and offering tennis lessons in San Francisco, California. His flair for writing led him to contribute to Harper’s magazine as a freelance writer, which ultimately paved the way for his career in equity research and investment.
Rise in the Financial Industry
Blodgett’s career in the financial industry took off in 1994 when he joined Prudential Securities’ Corporate Finance training program. This experience laid a solid foundation for his future endeavors. Just two years later, he transitioned to Oppenheimer and Company, where he assumed the role of a senior internet analyst. It was during this time that Blodgett made a bold prediction that caught the attention of many.
The Amazon Prediction
In late 1998, Blodgett confidently stated that Amazon’s stock price would surge from $240 to $400 within a year. This prediction was met with initial skepticism, as it seemed highly unlikely at the time. However, to the surprise of many, Blodgett’s prediction turned out to be accurate, captivating the media’s attention and solidifying his reputation as a renowned analyst.
The Downfall and Banned from the Securities Industry
Unfortunately, Blodgett’s successful career took an unfortunate turn. In 2003, he was permanently banned from the securities industry following a Civil Trial conviction for violating securities laws. Blodgett was slapped with a hefty fine of $4 million, and this incident tarnished his professional reputation. It was undoubtedly a difficult period for him.
The Acquisition of Business Insider
Despite the setback, Blodgett’s entrepreneurial spirit endured. In 2015, Axel Springer, a prominent German publishing conglomerate, acquired Business Insider for an impressive $343 million. Blodgett’s ownership stake of 5 to 10 percent in the company resulted in a pre-tax windfall of $17.34 million. This acquisition marked a significant milestone in his career and served as a testament to his vision and perseverance.
Blodgett’s journey from Wall Street to Business Insider is a remarkable one, defined by both achievements and setbacks. While his ban from the securities industry remains a stain on his professional record, his ability to bounce back and succeed with Business Insider is a testament to his resilience and business acumen.
Henry Blodgett’s story embodies the rollercoaster nature of the business world. From his early days as a freelance writer to his rise in the financial industry and the subsequent challenges he faced, Blodgett’s journey is one of perseverance and overcoming adversity. Today, Business Insider stands as a testament to his entrepreneurial spirit and the enduring legacy he has created in the realm of business journalism.