An In-Depth Conversation with Wilbur Ross
From his early days at Rothschild & Co. to his leadership at the Commerce Department under President Donald Trump, Wilbur Ross has navigated the intersection of finance, trade, and policy with a keen eye for opportunity. His career, marked by bold investments, controversial decisions, and strategic maneuvering offers a fascinating case study in power, resilience, and economic transformation.
Few figures in American business and politics have wielded as much influence as Wilbur Ross. A billionaire investor, turnaround specialist, and former U.S. Secretary of Commerce, Ross built a reputation for reviving failing industries and negotiating high-stakes deals that reshaped the global economy. Known for his keen ability to restructure struggling businesses and his tenure as the 39th U.S. Secretary of Commerce under President Donald Trump, Ross has left an indelible mark on global trade, corporate finance, and economic policy. He has served as either chairman or lead director to over 200 companies across 20 countries, including notable forays into the automotive sector—where International Automotive Components reached $5 billion in revenue by acquiring troubled suppliers in 17 countries—and reinsurance, where he joined the board of Montpelier Reinsurance Holdings. He was recognized by Bloomberg Markets as one of the top 50 global leaders. In 1999 President Kim Dae Jung awarded Wilbur a medal for his help during Korea’s 1998 financial crisis. Throughout his career, Ross has been instrumental in high-stakes negotiations, billion-dollar turnarounds, and policy-making that reshaped international trade.
Wilbur Ross built his fortune by investing in struggling industries that others had written off, such as steel mills and coal mines. He saw opportunity where others saw failure, turning faltering businesses into profitable ventures. Wilbur considers his investment style in distressed assets to be akin to “a phoenix that rebuilds itself from the ashes.”
Born in New Jersey, Ross attended a Jesuit prep school in New York before earning degrees from Yale and Harvard Business School. He spent two decades at Rothschild & Co., specializing in bankruptcies, before launching his own private equity firm, WL Ross & Co., in 2000. His work in the steel industry was particularly notable—under the International Steel Group, he acquired failing mills, revitalized them, and, within two years, sold the company for $4.5 billion, making it the largest steel producer in the U.S. at the time.
Despite his Wall Street pedigree, Ross maintained a humble down to earth attitude and good working relationship with labor unions. Leo Gerard, president of the United Steelworkers, acknowledged their dealings weren’t always smooth but said Ross was at least open to workers’ concerns.
A Palm Beach, Florida, resident with an art collection valued in the nine figures, Ross has been an active philanthropist and had a meaningful impact on global trade during his time as Commerce Secretary. Beyond his restructuring triumphs, he has served on the boards of the Smithsonian National Board, the Brookings Institution, and the 9/11 Museum, the Whitney Museum and the Japan Society among others.
Wilbur Ross sat down with Impact Wealth Magazine at his home in Palm Beach to discuss business, life, politics and global economic transformation.
Early Life and Education
Could you talk about your background, from your beginnings in New Jersey to studies at Yale and those early career days?
I was raised in a modest, middle-class town called North Bergen, New Jersey. My mother was a third-grade teacher, and my father was a partner in a small local law firm. Despite our simple beginnings, education and hard work were strongly emphasized in our household.
My first job was at Monmouth Park Jockey Club, where I worked as a car parker. My supervisor gathered all the young workers and taught us a dubious trick—if a patron’s car got damaged, our job was to divert their attention so they wouldn’t notice before leaving. If it was a convertible, we were to put the top up as we returned the car so they’d focus on that instead of the damage. If it wasn’t, we were to turn on the windshield wipers and blast the radio to distract them. This was my first exposure to corporate culture—albeit a rather unethical one—and it was an early lesson in the art of perception.
Between Yale and Harvard Business School, I worked as a summer trainee at the old JP Morgan. Unlike my first job, JP Morgan had a deeply ingrained sense of tradition and integrity, which left a profound impression on me. Deals at JP Morgan weren’t just about transactions; they were built on trust, long-term relationships, and a commitment to ethical finance. The firm had a culture of responsibility—one where the reputation of the institution mattered as much as financial gains. This contrast between cultures helped shape my views on leadership and business ethics, teaching me that success in business isn’t just about making money but about maintaining credibility and honor in every deal.
Mastery in Restructuring and Junk Bonds
What led you to get into distressed investing? It’s a rather unique focus compared to traditional investments.
Most investors look to put their money into thriving companies, but I was drawn to those in serious trouble. My career in distressed securities began in an unconventional way—through a rapid series of job changes early in my career. When I first joined Wall Street, my employer passed away two weeks before I even started, and the firm was immediately acquired by one of his clients. Just a few weeks later, another major change came when Jack Dorrance, the CEO of Campbell Soup, and his pension fund, which had $3 billion invested with us, questioned our new owner about holdings in Lucky Friday Silver Mines. The owner, caught off guard, turned to me for an explanation, which I provided. However, Dorrance was unimpressed by the new CEO and, soon after, moved his assets elsewhere, leading me to yet another firm—Wood Struthers.
At Wood Struthers, I was given the task of handling a venture capital fund they were trying to exit. The firm gave me two years to manage it without additional capital, litigation, or bad press. While this seemed like an opportunity, it was also a way for them to assign risk to the newest, most expendable employee—me. However, it turned out to be a great learning experience, as many of the companies in the portfolio were struggling, which forced me to understand corporate restructuring and financial workouts.
When junk bonds became a major financing tool under Mike Milken, I realized that while Rothschild, where I was then working, would never underwrite them, the inevitable failures of overleveraged companies would create significant opportunities for restructurings. I used the knowledge I had gained from my early years to help bondholders maximize their recoveries, and that eventually led me to take a more direct investment approach in distressed assets.
You have been called the ‘King of Bankruptcy’ for your expertise in restructuring failing companies. What is your strategy in operating and improving distressed organizations?
My approach to distressed companies started during the rise of junk bonds. At Rothschild, I realized that if a flood of low-quality bonds was being issued, it meant more bankruptcies were inevitable. Instead of underwriting these bonds, I focused on organizing the bondholders—mutual funds, insurance companies—so they could negotiate collectively rather than be picked off individually. I restructured companies in many industries including TWA, Pan Am, Texaco, and Federated Department Stores, A.H. Robins, El Paso Electric and Taj Mahal. The breadth of my expertise in turning around distressed assets across various sectors included the:
Steel Industry: Through International Steel Group, acquired and revitalized struggling companies such as Bethlehem Steel, LTV Steel, Weirton Steel, Acme Steel, and others—turning them into a major force in U.S. steel production.
Textile Sector: Consolidated bankrupt textile giants Burlington Industries and Cone Mills into the International Textile Group, helping to modernize and expand their operations both domestically and internationally.
Energy and Coal: By creating International Coal Group, I was instrumental in rescuing companies like Horizon Natural Resources from bankruptcy.
Automotive Components: With International Automotive Components, restructured a network of troubled automotive interior suppliers across 17 countries, growing the business into a multi-billion-dollar revenue stream.
Reinsurance: Efforts in the reinsurance market include leadership roles at Montpelier Reinsurance Holdings and creating Panther Reinsurance, the first private equity owned firm to be admitted to Lloyds.
Struggling companies often fall into a “loser’s mentality” where acknowledging failure becomes an insurmountable challenge. Typically, when a company flounders, two key issues emerge: it has expanded too quickly and taken on excessive debt. Admitting these mistakes is difficult for management, who frequently deflect responsibility and blame external factors. As a result, turning a company around often necessitates a complete overhaul of its leadership team. Another major hurdle is replacing the CEO. In many cases, the board is filled with executives handpicked by the CEO, making it hard to muster the resolve to remove a close associate. While cost-cutting measures are essential, a successful turnaround also requires driving more profitable revenue—whether through strategic shifts in business models or revamped pricing structures.
Key Investment Principles
What are some fundamental principles that guide your investment decisions in struggling companies?
Turning around a failing business isn’t just about cost-cutting; it requires fundamental changes:
- Overcoming the ‘Loser’s Mentality’ – Management in failing companies often blames external forces rather than taking responsibility. I remove leaders who have this mindset and bring in fresh talent.
- CEO Accountability – Boards rarely fire CEOs who led a company to bankruptcy because CEOs often select board members who won’t challenge them. Replacing ineffective leadership is crucial.
- Generating Profitable Revenue – A business cannot survive on cost-cutting alone. It must find new, sustainable revenue streams to rebuild.
- Altering Business Models – Sometimes, the pricing strategy or structure needs rethinking to regain competitiveness.
Tariffs and Global Trade
How do you see tariffs affecting American industries, and what lessons were learned from the Trump administration’s 1st term?
During my tenure, we utilized old trade laws from the 1970s to implement tariffs without needing Congress. These measures, upheld by the Supreme Court, strengthened Trump’s ability to use tariffs not only for trade issues but also for broader policy objectives, such as pressuring China on fentanyl trafficking and protecting key American industries.
The tariff strategy served multiple purposes: it helped revitalize industries like steel and aluminium, discouraged unfair trade practices, and signalled strength in trade negotiations. Many feared a trade war, but the reality is that countries like Canada and Mexico have economies one-tenth the size of ours. They cannot afford retaliatory tariffs on the same scale as the US is large global importer, giving the U.S. a major advantage.
Additionally, tariffs were used as a negotiation tool beyond just trade. Trump leveraged them in discussions with China to pressure them on broader geopolitical issues, such as intellectual property theft and national security concerns. One key lesson was that economic leverage—when applied strategically—could yield diplomatic benefits, deterring adversaries from taking aggressive actions.
Politics & Working with Trump
How did you first come to meet Donald Trump and what was your initial impression during those negotiations?
It all began in 1990 when the bondholders of Trump’s newly opened Taj Mahal casino in Atlantic City asked me to act as their financial advisor. The casino had defaulted on an $800 million mortgage bond without making a single interest payment. My first task was to negotiate directly with Donald Trump. He took me on a tour of the property before we sat down to talk about the bondholders’ demands.
It was quite an introduction. Riding through Atlantic City in a stretch Cadillac with flags on the front bumper felt like traveling with a head of state. As we drove the streets there were mobs of people screaming and pressing against the car saying things like “The Donald. He is here”. Trump was very confident, even flamboyant. He tried to convince me that the bondholders would be lucky to get 25 percent of par, since that’s where the bonds were trading. I made it clear we were aiming for 100 percent plus accrued interest, as well as changes to the management structure and board of directors. When we could not agree on terms I walked out on him which was a move that caught him off guard. He was shocked by my blunt style but respected it.
How did the negotiations end up resolving?
After a tense series of meetings, we eventually agreed on a “prepackaged Chapter 11” plan that allowed Trump to remain in charge of the Taj Mahal. The showmanship surrounding Trump convinced me that the casino’s value would be far greater with his star power in place than without him. The bondholders, however, secured a better return on their investment and an influential voice in the restructured entity. It was a classic case of high-stakes dealmaking under intense pressure with a positive outcome for everyone.
In what way did that early encounter shape your future relationship with Trump?
Working with him through such a complex financial crisis gave me firsthand insight into how he operates under pressure. We developed a mutual respect—he appreciated that I wasn’t afraid to be blunt, and I respected his willingness to keep negotiating until a deal was done. Over the years, we kept in contact, which is part of why, once he was elected President in 2016, he reached out and asked me to serve as Secretary of Commerce.
What’s the biggest challenge in Washington?
The biggest challenge in Washington is the deep political divisiveness, which often prevents meaningful progress. There are numerous areas where bipartisan agreement should be possible, yet political manoeuvring frequently obstructs forward movement. This dysfunction is damaging to economic policy and national strategy.
I experienced this first-hand during my confirmation process. Despite receiving a strong bipartisan vote of 72-27 in the Senate, my confirmation was delayed for nearly two months for no substantive reason. The delay was purely procedural and political, reflecting the broader issue of gridlock that plagues Washington.
In contrast, my experience in the private sector—particularly in bankruptcy restructuring—was often even more adversarial. By definition, in bankruptcy proceedings, there isn’t enough money to satisfy all parties, so negotiations are fierce. However, those disputes were rooted in financial realities. In Washington, many conflicts are driven by political positioning rather than substantive disagreements over policy.
This kind of gridlock weakens our ability to implement effective economic reforms. The administration’s focus has been on reducing unnecessary regulations, improving trade agreements, and fostering economic growth. However, to fully realize these goals, there needs to be a greater willingness in Congress to collaborate for the country’s benefit. Until that happens, many of the most pressing economic issues will continue to be hampered by partisanship rather than addressed with pragmatic solutions.
Major Business Deals
You played a pivotal role in restructuring the American steel industry, acquiring struggling companies and turning them around. What led you to believe this was a strong investment opportunity and how to get the competitive edge?
My involvement in the steel industry began with LTV Steel, where I initially served as an advisor during its first bankruptcy. However, after emerging from restructuring, the company failed to implement key strategic changes, ultimately leading to a second bankruptcy. At that point, I recognized an opportunity—not just to acquire assets at an attractive price, but to fundamentally reshape the industry.
One of the biggest obstacles was labor. The existing union contracts were outdated and inefficient, so I reached out to Leo Gerard, then president of the United Steelworkers, to negotiate a more sustainable agreement. Over dinner at an Italian restaurant in Pittsburgh, we quite literally wrote the new labor contract on the back of a napkin—a moment that would prove pivotal in the transformation of the business. The contract applied for any other steel company we acquired giving me an edge over the competition. The unions looked at me differently in part as I was the only corporate representative that would show up to the United Steelworkers Union picnic wearing my International Steel Group workman’s jacket, blue jeans and sneakers while my competitors showed up in Ralph Lauren blazers, Gucci shoes and Hermes ties.
With that agreement in place, I moved quickly to acquire LTV’s assets through an auction in Cleveland. The deal was just the beginning. We later expanded through the acquisition of Bethlehem Steel, creating a more consolidated and competitive steel company. In the end, the strategy paid off—we sold the company for $4.5 billion, a testament to the power of disciplined restructuring and decisive deal-making.
Negotiating Against Warren Buffett
You had a unique experience competing against Warren Buffett for Burlington Mills. What was that like?
Warren Buffett is arguably the most brilliant investor of all time, so it was certainly an interesting challenge. Burlington Mills was an established name in the textile industry, and I believed that with the right strategy, we could buy it and return it to profitability. However, Buffett had a similar theory—after all, he had built Berkshire Hathaway from a failing textile company, and he had recently acquired Fruit of the Loom. He knew the industry well, just as I did.
How did your and Buffett’s bidding strategies differ?
Our main difference was in how we approached the bid. Warren’s philosophy was straightforward: determine the value of something, bid in cash, and if someone overbids, let it go. But I, along with other bondholders, decided to outbid him using par bonds instead of cash. Those bonds were trading at a steep discount, so it made financial sense for us.
Buffett actually tried to challenge your bid in court, correct?
That’s right. In bankruptcy court, Warren argued that WL Ross & Co.’s bid should be disregarded because cash was more valuable than defaulted bonds. His lawyer, Bill Hayman, even put me up for cross-examination. But my response was simple: our committee owned more than two-thirds of the bonds, and we preferred equity over cash. Since it was our investment at risk—not Buffett’s—the court ultimately ruled in our favor.
Did this competition affect your relationship with Buffett?
Not at all. Warren is an easy-going guy, and even after our legal battles, we maintained a strong relationship. Years later, while serving as Commerce Secretary, I reached out to him about an opportunity with US Steel—Trump had directed me to try and save the company from collapse. I was convinced that once the company was turned around, its value would rise; at the time, the stock was trading at $8 per share before later surging to over $20, and subsequently received a $52 per share bid from Nippon Steel. Yet, after a careful evaluation, he ultimately decided not to invest. I still recall a light-hearted moment at a White House Correspondents’ Dinner when someone requested a picture of us together. Warren joked, “Let’s give them a scene of you and me fighting over my wallet!” We staged a mock wrestling match for the cameras, and afterward, he laughed, “Wilbur, it really wasn’t worth fighting over—I only had a hundred dollars in it!
Next Gen Family Leadership
Can you share an experience from your past that shaped the way you think about money and decision-making, particularly in your children’s upbringing?
One particular experience that stands out occurred when my daughter, Amanda, was eleven years old. After a family vacation, she returned home to find that her pet gerbil had fallen ill. The gerbil had been cared for at a pet shop while we were away, and it seemed that it had contracted a disease from another animal. We rushed it to the animal medical center as soon as we could, but sadly, the animal could not be saved and passed away there. The animal medical center called me to suggest an autopsy to determine the exact cause of death. At that moment, I saw an opportunity to teach a valuable lesson about money, decisions, and priorities. I told my children that an autopsy, though it might have been insightful, was ultimately an unnecessary expense—an example of how we shouldn’t waste money on ideas or actions that don’t lead to meaningful outcomes. I emphasized that while it was natural to want closure, sometimes the best decision is to accept the situation, learn from it, and move forward, rather than throwing more resources after a dead-end.
This experience, while simple in nature, became a turning point in my approach to teaching my children about the value of money and making thoughtful decisions. I often reflect on this in the context of my work, where risk and return must always be carefully balanced. In Risks and Returns, I discuss how important it is to weigh every investment decision with a clear understanding of potential outcomes—whether financial or emotional. Sometimes, the key to success lies in recognizing when to move on and not waste resources on things that no longer serve a purpose.
The lesson from Amanda’s pet gerbil wasn’t just about financial prudence—it was about teaching them the importance of rational thinking in the face of emotion. It’s a principle that has guided both my professional and personal life, and I hope it’s one that my children continue to carry with them.
Next Gen Family Leadership is a priority for many families. Can you tell us how you encouraged your children to have a great work ethic?
Encouraging a strong work ethic in my children has always been a priority for me. It wasn’t just about telling them to work hard but showing them how it’s done by leading by example and involving them in real-life business experiences. Children from affluent families should learn about hard work, money, and capitalism to avoid the common cycle of wealth lost through indolence. So, when my daughter Jessica was seventeen, we focused on finding summer jobs for her and her sister.
I didn’t want my daughters spending every summer day at the beach, so I bid on and won the local concession stand at Flying Point Beach in Water Mill, Southampton. I told them they’d be running the fast-food stand, with a stainless-steel van as their exclusive transportation and business space for the summer. We named it Tavern on the Beach, created the menu together, and although the girls wanted healthy options, I convinced them to include burgers, fries, and hot dogs. By the second week, Sabrett supplied them with logoed awnings for the food wagon and seating area. On the Fourth of July, they grossed $12,000—a significant amount for two teenagers. Tavern on the Beach was a success, and the experience taught them a lot about business.
Legacy and Philanthropy
What would you like your legacy to be as an investor and public servant?
I’m proud of my role in reshaping world trade and restricting high-tech exports to adversaries. We helped to reshore chip manufacturing in the United States and I initiated the CHIPS Acts, a subsidy program to incentivize companies to build chip fabs in the USA. The COVID-era U.S. Census was another major achievement—we had to hire 400,000 workers while managing safety measures, and we succeeded.
I also hope my book serves as part of my legacy. This book provides them with insights into resilience, strategic decision-making, and the courage to take calculated risks—essential skills for navigating today’s business world.
What inspired you to write your memoir, and what do you hope readers take away from it?
I had been toying with the idea for a long time, jotting down anecdotes from my career, but I hadn’t fully committed to writing a book. The turning point came when a publisher from Ireland, who had acquired a firm in London, encouraged me to turn my experiences into a memoir. Given my history with restructuring businesses and my time in government, I felt there were lessons that could benefit a wider audience.
To ensure the book would have real value, I sent drafts to respected leaders—Steve Schwarzman, Ken Griffin, John Paulson, Larry Kudlow, and others—asking if they’d be willing to endorse it publicly on the back cover. Their unanimous support gave me the confidence to move forward.
More than anything, I hope younger generations, particularly those entering business, find inspiration in my journey. Universities like Yale, Harvard, and NYU have integrated my book into their business curricula, which is deeply gratifying. I’ve noticed that many young professionals today are more risk-averse than past generations, often afraid of failure. I want them to understand that setbacks are inevitable but also opportunities to learn, adapt, and ultimately succeed. RISKS and RETURNS is available on Amazon and has been on the BestSeller lists of USA Today and Publishers.
