Early Life
Charles Robert Schwab Sr. was born on July 29, 1937, in Sacramento, California. He grew up in Woodland, California, before moving to Santa Barbara at age 12. In his youth, he worked various jobs, including as an ice cream salesman and a caddie. He attended Santa Barbara High School and was captain of the golf team. Schwab graduated from Stanford University in 1959 with a Bachelor of Arts in Economics and earned his Master of Business Administration from Stanford Graduate School of Business in 1961.
Rise to Success
Schwab's career began with the investment newsletter, Investment Indicator, in 1963. In 1971, he incorporated First Commander Corporation to offer traditional brokerage services. The company's name changed to Charles Schwab & Co., Inc. in 1973. A pivotal moment arrived in 1975 when the U.S. Securities and Exchange Commission deregulated the securities industry, allowing firms like Schwab to set their own fees. Schwab seized the opportunity to offer discount brokerage services, opening the first branch in Sacramento, CA, in September 1975. This strategy was a major success, and Schwab quickly became the largest discount broker in the United States.
Key Business Strategies
Schwab's business model was built on the principle of putting the client first. He focused on providing low-cost, efficient services, along with 24/7 access to services, and the one-stop mutual fund supermarket. The company expanded its offerings to include a wide range of financial products and services, catering to retail investors, independent advisors, and institutional clients. Schwab’s strategic focus on client acquisition and retention has driven consistent growth.
Philanthropy
Schwab is involved in philanthropy through the Charles and Helen Schwab Foundation. The foundation supports education, housing, and employment initiatives that aim to improve the economic well-being of marginalized communities. In 2024, the Charles Schwab Foundation granted $15.4 million and provided financial literacy programs benefiting 1.8 million youth.
