Thomas Rowe Price, Jr.

Thomas Rowe Price, Jr. followed a very simple business principle: “What is good for the client is also good for the firm”. Rather than charge a commission, as was then the practice in the securities business, Mr. Price charged a fee based on the assets under management.

Mr. Price first entered the world of Wall Street Investing in the 1920’s. By 1937 he founded his investment firm, T. Rowe Price. Between 1937 and 1971, when he sold his firm to his former employees, Price gradually developed a theory that investing was superior to speculating.

Mr. Price is best known for developing the growth stock style of investing. Although he was trained as a chemist, he had a passion for investing. Mr. Price believed that investors could earn superior returns by investing in well-managed companies in fertile fields whose earnings and dividends could be expected to grow faster than inflation and the overall economy. The core of Mr. Price’s approach, proprietary research to guide investment selection and diversification to reduce risk, has remained part of the firm’s principles.

Price received a bachelor's degree in chemistry from Swarthmore College.