One day late in 1975, Donald Trump was listening to a news report on the radio about employees at Las Vegas hotels who were taking a vote to strike. With that news, the price of shares in Hilton Hotels, which owned two hotels in Las Vegas, plummeted.
Trump was baffled.
How could the stock price of an enterprise with 150 hotels be so adversely affected by a strike against just 2 of its hotels?
Soon he came up with the answer:
The two Hilton casino hotels in Las Vegas produced almost 40 percent of the hotel chain's net profits; in comparison, the New York Hilton, which Trump had always assumed was a great success, contributed only 1 percent.
Busy trying to put up the new Grand Hyatt in Manhattan, Trump had a sobering ...