The Man Who Broke the Bank at Monte Carlo

In a memorable scene from the movie Lawrence of Arabia, Lawrence is riding alone across the desert, as he nears some mountain cliffs he begins to sing the popular English music hall favorite, The Man Who Broke the Bank at Monte Carlo. Listening for the echo, he hears both his own voice and applause from a British major standing on the rocks.

I've just got here, through Paris, from the sunny southern shore;
I to Monte Carlo went, just to raise my winter's rent.
Dame Fortune smiled upon me as she'd never done before,
And I've now such lots of money, I'm a gent.
Yes, I've now such lots of money, I'm a gent.

It turns out there really was a man who broke the bank at Monte Carlo. His name was Charles Deville Wells, a notorious con artist, swindler, and gambler from the late Victorian era. In 1891 he defrauded investors of £4,000 in a scheme to sell musical jump ropes. He then took the money to the Monte Carlo Casino. According to Wikipedia, “In an eleven-hour session Wells 'broke the bank' twelve times, winning a million francs. At one stage he won 23 times out of 30 successive spins of the wheel. Wells returned to Monte Carlo in November of that year and won again. During this session he made another million francs in three days, including successful bets on the number five for five consecutive turns.” Breaking the bank refers to an occasion when a gambler wins more money than is on a table. The expression in French is, "faire sauter la banque." When this occurs, the table is shut down and covered with a black cloth until more money is brought out from casino count room.

I stay indoors till after lunch, and then my daily walk
To the great Triumphal Arch is one grand triumphal march,
Observed by each observer with the keenness of a hawk,
I'm a mass of money, linen, silk and starch -
I'm a mass of money, linen, silk and starch.

The casino hired private detectives to find out what system Wells used to beat their Roulette wheels. Much later he admitted he just hit a lucky streak while “doubling down” after a loss.

As I walk along the Bois Boolong
With an independent air
You can hear the girls declare
"He must be a Millionaire."
You can hear them sigh and wish to die,
You can see them wink the other eye
At the man who broke the bank at Monte Carlo.

In 1892 Fred Gilbert wrote a popular song about the event making Wells something of a celebrity. He used his new status to promote himself as a brilliant engineer with a fuel-saving device for steam ships. To “test” his new invention he bought a very large yacht and returned to Monte Carlo with his new mistress. He lost all of his money and that of his investors. He was found guilty of fraud and spent eight years in an English jail. Convictions for additional frauds netted him three more years in English jails and five in French jails. He died in poverty.

The reality of the American millionaire is far less interesting than the antics of a few crooked bankers, Wall Street hooligans, and the odd behavior of disturbed television stars. A recent survey indicates there are 8.4 million American households with a net worth in excess of one million dollars. There are roughly 115 million American households. Therefore, roughly 1 out of 14 American households would be considered millionaires. That’s a lot of millionaires. Who are these people? Turns out they are a pretty boring group.

In the famous book, The Millionaire Next Door: The Surprising Secrets of America's Wealthy, authors Danko and Stanley study the behavior of millionaires. Want to find a millionaire to study and emulate? Visit a modest suburban neighborhood. Look for well made brick houses from the 1950s or 1960s with big trees in the yard. In that neighborhood, find a self made small business owner who loves his job and his wife of 30+ years. It is likely he will be driving a car like a low mileage 10 year old Buick. For some reason these men buy cars by the pound, the cheapest decent car they can buy on a per pound basis. If he is wearing a shirt from J.C. Penny, you have hit pay dirt. J.C. Penny is the millionaires’ go to clothing store. They spend less than they make. They invest in a consistent disciplined manner over a lifetime, usually in pretty safe, boring things like blue chip stocks, low cost mutual funds, or in conservative cash flow based rental properties.

They do not buy things they don’t need with money they don’t have.

Go thou and do likewise.