NEIL: HOME DEPOT OPENED THE ITS
FIRST DOOR 40 YEARS AGO.
THINK OF WHAT WAS GOING ON THEN.
A RECESSION AND LONG GAS LINES.
KEN LANGONE JOINING US
EXCLUSIVELY TO REFLECT ON THAT
SAYING THEY WERE DIFFERENT
TIMES.
MIDDLE OF A RECESSION, LONG GAS
LINES AGAIN.
>> BAD TIMES.
BAD TIMES.
>> NEIL, WE COULDN'T GET A
BANKER TO GIVE US A LINE OF
CREDIT.
WE HAD NO MONEY.
KEN RAISED TWO MILLION DOLLARS.
WE WERE OPENING FOUR STARS FOR
TWO MILLION DOLLARS.
WHICH CAN'T BE DONE.
WE HAD NO MONEY.
NO BANK IN ATLANTA WOULD GIVE US
MONEY.
KENNY'S FRIEND ALL OVER IN
CHICAGO, IN FACT ONE MEMBER OF
THE BOARD, HIS FATHER WAS THE
BIGGEST BANKER IN DALLAS.
>> BARRY COX.
>> HIS FATHER WAS AN INVESTOR.
WOULDN'T GIVE US A LOAN.
NEIL: WHAT DIDN'T THEY LIKE BIT?
>> NO CREDIT.
WE HAD AN IDEA.
ALL WE HAD.
THE CONCEPT DIDN'T MAKE SENSE.
WE GOT INVESTORS TO GIVE US
LETTERS OF CREDIT WE WERE ABLE
TO USE TO GO TO BERNIE'S FRIEND
RUTH FLEMING AT SECURITY PACIFIC
BANK.
WE TOOK THE LCs, GOT A
3 MILLION-DOLLAR LINE OF CREDIT.
NEIL: YOU OPENED UP STORES.
YOU WERE HANDING OUT DOLLAR
BILLS TO GET THEM TO COME IN.
>> YEAH.
NEIL: DID THAT BRING MUCH
TRAFFIC?
>> NO BECAUSE THEY LEFT THE AIR
OUT OF THE PAPER.
IF ANYTHING COULD GO WRONG, IT
WENT WRONG.
IT WAS AJC, A DOUBLE TRUCK,
DOUBLE PAINED, THEY LEFT IT OUT.
NEIL: YOU LOOKED LIKE A FOOL OUT
THERE?
>> WE WENT OUT ON THE HIGHWAY TO
HAND MONEY OUT.
PEOPLE DIDN'T EVEN KNOW WHO WE
WERE.
SO, BUT I CALLED THE, THE
PUBLISHER OF THE PAPER AND I
DIDN'T SCREAM AT HIM.
I SAID, YOU JUST PUT A KNIFE
THROUGH MY HEART.
NEIL:
>> THE GUY SAID WHY?
YOU LEFT THE AD OUT.
FOR THAT HE GAVE US BACK OF THE
FIRST PAGE FOR THREE YEARS.
YOU COULDN'T BUY.
NEIL: THAT IS GOLD.
YOU WOULD BE RELENTLESS, POLICE
PEOPLE LEAVING HOME DEPOT, IF
THEY DIDN'T ANYTHING, YOU WANT
TO KNOW WHAT WAS GOING ON?
>> I USED TO SPEND MY TIME
OUTSIDE THE STORE, THEY WOULD
LEAVE WHAT DIDN'T YOU FIND.
YOU DIDN'T HAVE SUCH AND SUCH.
GIVE ME YOUR ADDRESS AND I WILL
HAVE IT TOMORROW OR TONIGHT.
BUY IT AT COMPETITOR, KNOCK THE
PRICE DOWN BY A THIRD, MAKE SURE
THE STORE HAD IT AT THAT PRICE.
NEIL: INCREDIBLE.
>> WHEN YOU START A BUSINESS,
THIS HOME DEPOT IS PROBABLY THE
POSTER-CHILD FOR CAPITALISM.
WHEN I HEARD HERE BERNIE SANDERS
TALKING ABOUT SOCIALIZE, THIS
COULD NEVER HAPPEN IN A
SOCIALIZED -- NEVER HAPPEN.
NEIL: BUT IT HAPPENED IN A
PRETTY DIFFICULT ECONOMIC
PERIOD.
>> INTEREST RATES WERE 21%.
NEIL: RIGHT.
>> AND WORSE.
NEIL: WHY DID YOU CHOOSE THEN TO
DO THIS?
>> BECAUSE I GOT FIRED.
NEIL: I UNDERSTAND.
HE DIDN'T CHOOSE T WAS FATE.
WE GOT FIRED.
>> WE DIDN'T KNOW JIMMY CARTER
WOULD BE IN THE WHITE HOUSE.
NEIL: IF YOU KNEW WHAT YOU WERE
DEALING WITH IN THE ENVIRONMENT,
DID YOU EVER SAY, MAYBE WE HAVE
TO POSTPONE THIS UNTIL WE'RE OUT
OF THE RECESSION?
>> NO, NEVER, NEVER.
PEOPLE NEEDED PRODUCT.
PEOPLE STILL HAD THE BUILD
HOUSES.
PEOPLE STILL HAD TO FIX THINGS.
WHAT WE STARTED TO THE DO IT
YOURSELF CRAZE IN AMERICA.
IN AMERICA.
THAT WAS A BIG DEAL.
NEIL: BUT DID YOU KNOW THAT WAS
COMING AT THE TIME.
>> IT WAS SOMETHING ELSE.
BECAUSE WHERE THE WORLD WAS.
WE WERE ABLE TO GET LEASES FROM
JCPENNEY WHICH WAS HERE ON
SIXTH AVENUE RIGHT UP THE
STREET, WE WERE ABLE TO GET
LEASES ON FOUR STORES IN
ATLANTA.
NEIL: TREASURE ISLAND WAS ONE OF
THEM.
>> THEY WERE SHUTTING THEM.
THEY WERE SHUTTING FOUR TREASURE
ISLANDS.
PART OF THE DEAL WAS, YOU
REMEMBER THIS?
WE FAV, WE WERE GOING TO GIVE
JCPENNEY WARRANTS AS PART OF THE
RENT.
NEIL: WOW.
>> FOR 10% OF THE COMPANY.
NOW TWO DAYS BEFORE THE CLOSING
I'M CALLING THEM, HEY, WE HAVE
PAPER WARRANTS.
THEY'RE A NUISANCE.
WE DON'T WANT THEM.
KEEP THEM.
>> SECURITY PACIFIC BAKE ALSO
DIDN'T TAKE ANY WARRANTS.
NEIL: IDIOTIC MOVES.
>> IT WASN'T IDIOTIC.
YOU HAVE TO UNDERSTAND AT THE
TIME, IF YOU LOOKED AT IT, YOU
KNEW THE BUSINESS, YOU WOULD SAY
THIS IS A FAILURE.
THERE IS NO WAY THEY COULD
SUCCEED.
HOW DO YOU SELL PRODUCT AT A
THIRD LESS THAN EVERYBODY ELSE?
HOW DO YOU HAVE QUALIFIED PEOPLE
ON THE FLOOR OF THE STORE.
HOW DO YOU HAVE INVENTORY THAT
IS FIVE TIMES WHAT EVERYBODY
ELSE HAS.
NEIL: HOW DID YOU DO THAT?
THERE WERE BIGGEST COMPETITORS.
>> VOLUME.
VOLUME.
NEIL: YOU DIDN'T HAVE VOLUME.
>> BUT WHICH EXPECTED IT.
NEIL: IN THE BEGINNING YOU HAD A
LOT OF EMPTY BOXES, ON THE
SHELVES.
>> BUT THAT WAS INVENTORY.
WE HAD NO COMPETITORS REALLY.
NEIL: I THINK THEY WERE IGNORING
YOU.
>> THEY DIDN'T THINK IT WOULD
WORK.
SEARS ROEBUCK WAS THE
COMPETITOR.
THEY WERE THE BIGGEST
COMPETITOR.
I USED TO FOLLOW THEM ON RETAIL
ANALYSTS ON WALL STREET.
I WOULD GET UP AND I WOULD SAY,
LOOK WE'RE A A GNAT ON THEIR
REAR ENDS, JUST IGNORE US.
THEY REALLY DID.
NEIL: EVERY VISIONARY COMPANY
STARTS OUT THAT WAY.
>> WE OFFERED KROGER 10% OF THE
COMPANY FOR $2 MILLION WE HAD
GOTTEN STARTED.
THEY CAME BACK AND SAID, YOU
CAN'T HAVE LOW PRICES, HIGH
SERVICE AND WIDE ASSORTMENT,
STILL MAKE MONEY.
THAT WAS IT.
THEY WALKED AWAY.
THEY DIDN'T DO THE DEAL.
THAT WAS THEIR REASON.
MICROSOFT WAS THE SAME WAY.
PEOPLE DIDN'T BELIEVE.
NEIL: ABSOLUTELY.
>> THEY COULD HAVE OWNED THE
COMPANY, IBM.
THEY DIDN'T.
THEY GAVE THEM THE TECHNOLOGY.
WE HAD THE SAME THING.
NEIL: IF YOU WERE STARTING IN
ENVIRONMENT LIKE WE ARE TODAY,
MUCH LOWER TAXES, MUCH MORE
STABLE ECONOMIC ENVIRONMENT,
WHAT DO YOU THINK?
>> FIRST OF ALL IT WOULD BE VERY
DIFFICULT TODAY.
NEIL: YEAH.
>> THE GOVERNMENT IS REALLY
WORKING AGAINST YOU.
ONE OF THE THINGS KENNY AND I
WERE TALKING ABOUT IN THE CAR
COMING UP HERE, WHEN WE, BEFORE
WE WENT PUBLIC, I MADE A
COMMITMENT TO PEOPLE THAT I
HIRED.
I SAID LOOK, IF WE'RE
SUCCESSFUL, WE HAVE A PUBLIC
OFFERING, EVERY SINGLE PERSON
WORKING HERE WILL GET STOCK IN
THE COMPANY.
AND ARTHUR AND I LIMITED OUR
SALARIES.
NEIL: RIGHT.
>> WE TOOK NO OPTIONS.
WE'RE THE ONLY COMPANY I KNOW
OF, NO OPTIONS.
WE NEVER TOOK AN OPTION, EVER,
EVER.
I COULD BE AS RICH AS WARREN
BUFFETT TODAY.
BUT I WOULD RATHER HAVE EVERY
ASSISTANT MANAGER, EVERY
MANAGER, SECRETARIES --
NEIL: YOU NEVER PAID MINIMUM
WAYNE.
>> NEVER ONCE PAID A MINIMUM
WAGE.
>> NEVER MINIMUM WAGE.
BUT EVERY SINGLE ONE OF THEM,
LOOK WE HAD A GREAT STORY TODAY,
THERE WAS A GUY WORKING FOR US
36 YEARS.
HE SPOKE TO GREG MINEAR.
I'M RETIRING.
HE SAID, WHY ARE YOU RETIRING?
THE TRUTH OF THE MATTER MY
DIVIDENDS ARE WORTH MORE THAN MY
SALARY.
MAKING MORE MONEY ON DIVIDENDS
THAN MY SALARY.
NEIL: YOU MADE A LOT OF
MILLIONAIRES.
>> BY THE WAY THE CORNERSTONE OF
OUR BELIEF FROM DAY ONE WAS
PEOPLE IN THE STORE.
WE ALWAYS BELIEVED IF THIS WAS
GOING TO WORK, WE HAD TO GET THE
RIGHT PEOPLE, MOTIVATE THEM,
AFTER WE GOT THEM, WE HAD TO
RESPECT THEM.
AND WE DO.
>> AND YOU DO.
REASON WHY I MENTIONED IT,
YOU'RE BOTH BILLIONAIRES.
YOU HAVE FREIGHT SUCCESS.
THERE IS THE PUSH FROM THE
BILLIONAIRE'S CLUB.
HEARD A GROUP WANTS HIGHER
TAXES, GEORGE SOROS, CHRIS
HUGHES, FACEBOOK COFOUNDER, HOST
OF OTHERS.
DESCENDANTS OF FAMILY EMPIRES,
ABIGAIL DISNEY, PRITZKER, THEY
SAY TAX US MORE.
WHAT DO YOU THINK OF THAT.
>> WELL THEY TRUST THE
GOVERNMENT MORE THAN I DO.
NEIL: RIGHT.
>> I CAN'T TELL YOU HOW MUCH
MONEY WE'VE GIVEN AWAY.
MY FOUNDATION ACTUALLY HAS GIVEN
AWAY OVER $2 BILLION.
I WOULD RATHER GIVE IT AWAY THAN
HAVE SOME CONGRESSMAN GIVE IT
AWAY.
WE BUILT HOSPITALS.
WE GUILT THE GEORGIA AQUARIUM
WHICH YOU HAPPENED TO BE AT.
NEIL: BEAUTIFUL.
>> THE CARDIAC UNITS, STROKE
UNITS.
NEIL: LANGONE MEDICAL CENTER.
>> NYU.
WE DO BETTER WITH OUR MONEY THAN
THE GOVERNMENT.
WHY WOULD I WANT THE GOVERNMENT
TO HAVE IT?
ANYTHING THEY TOUCH --
NEIL: DO YOU GET ANNOYED, BIG
OL' TARGETS, NOT SPECIFICALLY ON
YOU, THE RICH, ALL THESE
DEMOCRATIC CANDIDATES, TO A MAN
OR WOMEN THEY SINGLE OUT NICE
LIKE YOU, THIS IS WHAT HAPPENED
TO CAPITALISM.
>> WAIT A MINUTE.
WHAT HAS HAPPENED TO CALL --
CAPITALISM.
TWO, THREE, FOUR OF US, HUMBLE
ORIGINS.
EVERYONE OF THE FOUR OF US.
HIS FATHER WAS A PLUMBER.
ENORMOUSLY SUCCESSFUL
FINANCIALLY.
LOOK WHAT WE'VE DONE.
BUT I HAVE A DIFFERENT POINT.
I HAVE NO TROUBLE PAYING MORE
TAXES PROVIDED IT IS USED TO
REDEEM THE FUTURES OF THE YOUNG
PEOPLE TODAY.
WHAT THE HELL AM I DOING?
WHAT IS BERNIE DOING GETTING
SOCIAL SECURITY?
WE SHOULDN'T GET A CHECK.
FIX IT.
MAKE THAT HAPPEN.
NEIL: BUT IT DOESN'T HAPPEN?
>> WHY?
BECAUSE THEY HAVEN'T GOT THE
GUTS IN WASHINGTON.
NEIL: BERNIE SANDERS IS OUT
TODAY WITH A PLAN THAT WILL TAX
WALL STREET TRADES, PENNIES ON
THE DOLLAR, BUT IT'S A START TO
PAY FOR AMONG OTHER THINGS,
COLLEGE DEBT, FREE COLLEGE DOWN
THE ROAD.
>> DON'T BRING UP BERNIE
SANDERS.
THAT IS A RED FLAG IN FRONT OF
ME.
HE IS THE ENEMY OF EVERY
ENTREPRENEUR THAT WILL BE BORN
IN THIS COUNTRY AND BEEN BORN IN
PAST.
NEIL: HE REPRESENTS HALF THE
CANDIDATES VIEWS.
>> WE DON'T HAVE, OUR KIDS
TODAY, DON'T LEARN WESTERN
CIVILIZATION.
THEY DON'T LEARN HISTORY.
HISTORY REPEATS ITSELF.
YOU SEE THINGS HAPPENING OVER
AND OVER AGAIN.
NEIL: IF HE BECAME PRESIDENT
WHAT WOULD YOU GUYS DO?
>> MOVE TO AUSTRALIA.
>> WHAT COULD HE DO?
HE CAN'T DO ANYTHING TO US.
HE WILL AFFECT MY GRANDCHILDREN.
LET ME BRING UP ONE THING.
NEIL: SURE.
>> BERNIE SANDERS TALKS ABOUT
SOCIALIZED MEDICINE.
MY FOUNDATION NOW IS WORKING ON
ONE ISSUE, THAT IS TAKING CARE
OF THESE VETERANS, KIDS WHO
FOUGHT IN AFGHANISTAN, IRAQ.
YOU KNOW THAT 20 A DAY COMMIT
SUICIDE.
20 EVERY SINGLE DAY.
WHAT IS BERNIE SANDERS DOING
ABOUT THAT?
WHY DOESN'T HE SHUT IS MOUTH AND
DO SOMETHING ABOUT THESE KIDS?
THEY GO TO THE VETERANS
ADMINISTRATION.
THEY CAN'T TAKE CARE OF IT.
THE PROOF IN THE PUDDING IS, 20
A DAY ARE COMMITTING SUICIDE.
IF IT WAS MEASELS, THE CDC, THE
WORLD WOULD BE IN AN UPROAR BUT
IT IS KIDS THAT PUT THEIR LIVES
ON THE LINE, THAT ARE TREATED SO
BADLY, I DIDN'T HEAR ONE SINGLE
CANDIDATE TALK ABOUT IT.
BY THE WAY, TRUMP IS FULLY
SUPPORTIVE OF THIS.
HE HAS DONE SOME THINGS THAT
COULD FIRE PEOPLE, THAT HAVE
DONE THE WRONG THING AT THE
VETERANS ADMINISTRATION.
THE VETERANS ADMINISTRATION IS
WHAT MEDICAL CARE IS GOING TO BE
LIKE IN THE NIGHT IF BERNIE
SANDERS IS ELECTED.
NEIL: YOU MENTIONED THE
PRESIDENT.
LET ME GET YOUR TAKE.
THE PRESIDENT SAID IF I'M NOT
REELECTED EXPECT A MARKET CRASH,
WHAT DID YOU THINK OF THAT?
>> I DON'T KNOW ABOUT THAT BUT
LET ME GO BACK TO BERNIE
SANDERS.
BELIEVE IT OR NOT CHAVEZ IN
VENEZUELA CAME INTO POWER
THROUGH DEMOCRATIC PROCESS.
IF THE PEOPLE IN AMERICA TODAY,
THE FELLOWS WITH THE HARD HATS
ON, IF THEY WANT TO KNOW WHAT
THE FUTURE HOLDS FOR THEM
FOLLOWING BERNIE SANDERS, GO TO
CUBA, GO TO VENEZUELA, GO TO
RUSSIA, GO TO EASTERN EUROPE.
GUESS WHAT?
IT DOESN'T WORK.
IT NEVER WORKED.
AVERAGE VENEZUELAN LAST YEAR
LOST 34 POUNDS.
THERE IS NO FOOD DOWN THERE.
NEIL: LOOK THEY HAD A LOT OF
RICHES TO BEGIN WITH.
>> ONE OF THE WEALTHIEST COUNTRY
IN THE SOUTHERN HEMISPHERE.
IT WAS SITTING ON A HUGE POOL OF
OIL.
NEIL: LATEST EXAMPLE.
BUT, DONALD TRUMP HAS SAID,
THESE ARE THE CAST OF CHARACTERS
THAT THEY ARE REPLACING, THIS IS
WHAT YOU HAVE TO LOOK FORWARD
TO.
HE ALSO SAID WALL STREET WOULD
BE SO STUNNED BY THE
ALTERNATIVE, THAT IT WOULD
CRASH.
>> I HAVE LEARNED AFTER 60
SOMETHING YEARS IN THE BUSINESS.
DON'T GUESS THE MARKET.
MARKET WILL DO WHAT IT WANTS TO
DO.
I HOPE TO GOD FOR SAKE OF ALL OF
US, THAT TRUMP IS WRONG.
WHEN WE CHANGE STRUCTURE OF
NATION, THAT IS RISKY GAME.
THERE IS A GOOD SHOT WE HAVE
SEVERE ECONOMIC DOWNTURN IF
AMERICAN PEOPLE GO IN THAT
DIRECTION.
THAT IS WHAT HAPPENED IN