What Ty Cobb can teach us about investing

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He was arguably the greatest baseball player of his era and one of the least loved of all time. Opponents thought he was a dirty player who would do anything to win, even if that meant injuring an opponent. His teammates were just glad they did not have to play against him.

He was born in Narrows, Georgia and is remembered in some circles as “The Georgia Peach.” Tyrus Raymond Cobb set almost 100 Major League Baseball records during his career and still holds the record for the highest lifetime batting average of any player ever. Despite that, Cobb is often remembered more for his temper than his on-field heroics. They say Cobb loved to intimidate opponents by sliding into a base with his feet up and jamming the spikes on his cleats into their lower leg. He once beat and choked a black man who tried to touch him. When the man’s wife attempted to intervene on her husband’s behalf, Cobb choked her too. He was also known for attacking hecklers in the stands. In 1912, in New York, Cobb got suspended for nearly beating a handicapped heckler to death. The man was missing one hand and three fingers on the other, but he repeatedly called Cobb a racial slur. When Cobb charged into the stands and jumped on top of the man, beating him with his fists, surrounding fans attempted to pull him off with pleas that the man had no hands.

Cobb responded, “I don’t care if he got no feet.”

Cobb made his Major League debut in 1905, less than a month after his mother had shot and killed his father. He was 18 years old. Apparently, Cobb’s father suspected his mother of cheating on him and he snuck past her bedroom window one day intent on catching her in the act. Cobb’s mother said she saw a shadowy figure outside of her bedroom window and was just defending herself. Mrs. Cobb was acquitted in March of the following year. That same year, her son signed his first baseball contract to play for the Detroit Tigers earning $1,500 per year. He would go on to play for 24 seasons, 22 of those for the Tigers.

Cobb was crafty. He once noticed a throwing peculiarity in an opposing first baseman. He would wait two years to exploit that weakness and score a game-winning run. He crowded the plate against legendary fireballer Walter Johnson forcing him to pitch outside. Johnson, nicknamed “The Big Train,” threw so hard that it made Cobb flinch, but, according to Cobb, he had a weakness. He was scared he might hurt an opponent, so when Cobb dug in, Johnson got timid and threw outside.

Ty Cobb did not like Babe Ruth. He did not care for the way Ruth played the game.

Anyone can hit a home run if they try,” the Detroit star sneered. “It’s a brute way to approach the game.”

Ruth received more publicity than Cobb and once commented anyone could hit “those dinky singles.” Not only was Ruth a bigger star, to make matters worse, Ruth was paid significantly more — $80,000 in 1930, which was big money in those days. When a reporter asked Ruth if he deserved to make more than President Hoover, Ruth responded, “Why not? I had a better year.”

Cobb, who never made more than $40,000 a year while playing for the Tigers, seethed.

When it came to money, Cobb would have the last laugh. He may not have earned the same salary as Ruth, but he was smarter about how he spent it. Ruth was famous for squandering money on booze, fast women and even faster living.

Early in his career, Cobb began to invest some of his earnings into a fledgling company from his home state of Georgia. Every year, he bought more shares. He believed in the company and its product. The company prospered and so did Cobb. Of course, the name of that company was Coca-Cola, a name more associated with the state than the “Georgia Peach.” Eventually, Cobb would own more than 40,000 shares of Coca-Cola stock as well as four different bottling plants. He spent his retirement travelling and playing polo. He also liked to hunt and fish, just like any other Georgia boy. His other passion was buying and trading stocks and bonds. In addition to Coca-Cola, he would acquire a big position in General Motors.

Cobb lived to the age of 74, and later in life he mellowed. He praised the arrival of black athletes in the game, helped Joe Dimaggio negotiate his first contract and even acknowledged Babe Ruth as the greatest hitter who ever lived. Like many wealthy Americans he also became a philanthropist. He endowed the Cobb Memorial Hospital in memory of his parents in his hometown of Narrows. It is now part of the Ty Cobb Healthcare System. He also set up the Cobb Educational Fund, which awards Scholarships to needy students in Georgia. He endowed that fund with $100,000 worth of Coca-Cola stock in 1953. To date, the Ty Cobb Educational Fund has awarded more than $18 million in scholarships to deserving students regardless of race.

It is not about much money you make today; it is how wisely you invest that money to influence the future.

                Scott A. Grant is President of Standfast Asset Management in Ponte Vedra Beach, Florida.

Standfast Asset Management, LLC, is registered as an investment adviser and only conducts business in states where it is properly registered or is excluded from registration requirements. Registration is not an endorsement of the firm by securities regulators and does not mean the adviser has achieved a specific level of skill or ability.

Content should not be regarded as a complete analysis of the subjects discussed or as personalized investment advice. All expressions of opinion reflect the judgment of the authors on the date of publication and may change in response to market conditions. You should consult with a professional advisor before implementing any strategies discussed.