Early Life and Education
Michael Robert Milken was born on July 4, 1946, in Encino, California, to a middle-class Jewish family. He attended Birmingham High School, where he excelled as a student and was involved in various extracurricular activities. Milken graduated from the University of California, Berkeley, with highest honors in 1968, and went on to earn his MBA from the Wharton School of the University of Pennsylvania.
Rise to Success
Milken's career took off in 1969 when he began working at Drexel Harriman Ripley, which later became Drexel Burnham Lambert. He is credited with developing the high-yield bond market, which provided capital to smaller companies and fueled the leveraged buyout boom of the 1980s. Milken's innovative approach to finance transformed the landscape of corporate America, funding over 3,200 companies and creating millions of jobs. He became known as the "Junk Bond King" for his work in this area. By 1976, his income at Drexel Burnham Lambert was estimated at $5 million a year.
Key Business Strategies
Milken's key business strategy revolved around identifying and investing in high-yield bonds, which offered higher returns than traditional bonds but carried greater risk. He focused on assessing the potential of companies rather than solely relying on their credit ratings. This approach allowed him to provide capital to a wide range of businesses, fostering innovation and growth. He also emphasized research and understanding of financial history and credit, which he believed was the key to success in the financial markets.
Philanthropy
After facing legal issues in the late 1980s, Milken shifted his focus to philanthropy. He has founded and supported numerous initiatives in medical research, education, and public health. Notably, he founded the Prostate Cancer Foundation in 1993 after his own battle with prostate cancer. He also co-founded the Milken Family Foundation, which supports education and youth programs, and FasterCures, an organization dedicated to accelerating progress against life-threatening diseases. Milken has donated significantly to the Center for Advancing the American Dream in Washington D.C., which promotes equal access to education and healthcare.