Early Life and Education
Charles Robert Schwab Sr. was born in Sacramento, California, on July 29, 1937. His father was a lawyer and district attorney. Schwab worked various jobs during his youth, including as an ice cream salesman and a caddie. He graduated from Stanford University in 1959 with a Bachelor of Arts in Economics and earned a Master of Business Administration from Stanford Graduate School of Business in 1961.
Rise to Success
Schwab began his career with Investment Indicator, an investment newsletter launched in 1963. In 1971, he founded First Commander Corporation, a conventional broker-dealer securities business. The company was renamed Charles Schwab & Co., Inc. in 1973. A pivotal moment came in 1975 when the U.S. Securities and Exchange Commission deregulated the securities industry, allowing Schwab to offer discount brokerage services. This strategy revolutionized the industry and made investing more accessible. Schwab opened his first branch in Sacramento, CA, in September 1975.
Key Business Strategies
Schwab's key strategies included offering low prices and efficient order executions, which helped the company become the largest discount broker. He invested heavily in technology, including the BETA mainframe system, to automate transactions and recordkeeping. In 1995, Schwab launched its first website, Schwab.com, and started offering online trading.
Philanthropy
Charles Schwab is involved in philanthropy through The Charles and Helen Schwab Foundation, which supports organizations focused on education, poverty prevention, human services, and health.