They are often in control of natural resources and man made structures. They act slowly and certainly, which frustrates many around them, and inevitably these characteristics may be the source of many of their challenges when it comes to wealth creation.
One of the world?s most successful Lords, John D Rockefeller said when reflecting on his life, "How well I remember the words of my mother, wilful waste makes woeful want!"
Rockefeller became a billionaire in the oil industry without needing to own a single oil well. Mittal has become a billionaire in the steel industry without needing to own a single mine. Whether commodity lords or land lords, they have the patience and diligence to collect and crank up every cent of cash flow they find.
Lords don't have time for politics or niceties. They would rather deal with simple legwork than fancy footwork. When Rockefeller began buying up other refiners in the 1800's he did not wine and dine them, but instead said simply, "If you refuse to sell, it will end in your being crushed." And as he knew his numbers, he was right.
They also prefer to keep to themselves, and those who have not yet found their wealth have often failed to see their analytical skills, risk aversion and need for control as their greatest strengths. When momentum grows, many Lords also cannot resist their tendency to micro-manage, which cash flow responds well to but which people do not.
They have the ability to consistently generate cash flow without the need for either innovation or timing, weathering market conditions and acquiring the competition until they are dominating entire industries.
Lakshmi Mittal, Andrew Carnegie, John D Rockefeller, Jean Paul Getty and Sergei Brin.
Like Carnegie before him, Lakshmi Mittal has risen to dominate the steel industry. His focus has been clear, saying "Management teams need to be more bottom-line driven. As management, we need to be aware of all of the opportunities existing for further consideration, restructuring and forming new alliances."
Lords are data based; they love the detail, and are renowned for their thrift. They ask "How?" "How will this be built?" "How shall we ensure this happens?"
They are controlling and cautious, and see distinctions that others miss. However, they have little patience with social niceties and can struggle in presenting complex ideas.