The Story About How an Eye Doctor made $5 Billion Dollars

If you happened to wander through Miami Beach, Florida, and encountered an older man donning a red fedora and wire-rimmed glasses, you might dismiss him as an ordinary individual, someone you’d soon forget once he was out of sight. Yet, this seemingly unremarkable man is Herbert Wertheim, an individual whose journey from modest beginnings to billions of dollars is nothing short of extraordinary. Wertheim's story is a compelling narrative of resilience and ingenuity, illustrating how someone with a background as humble as his can rise to immense financial success. Born to Jewish immigrants who fled the perils of Nazi Germany, Wertheim's early years were marked by hardship and struggle. His parents settled in Philadelphia before relocating to Hollywood, Florida, where they established a small bakery. Living in a modest apartment above their business, Wertheim faced early academic difficulties due to undiagnosed dyslexia, a condition that was poorly understood at the time. This learning challenge led to a troubled school experience, where he often faced harsh judgments and was labeled as 'dumb,' an experience he recounted with painful clarity in a 2019 interview with Forbes.

By the 1950s, as Wertheim entered his teenage years, his frustrations with the educational system and a difficult home environment, characterized by an abusive father, pushed him towards rebellion. He found solace in the natural beauty of the Everglades, where he hunted, fished, and sold his catches to locals. This period of his life also saw him hitchhiking around Florida, picking fruits to make a living. His repeated truancy eventually led him to court, where a judge presented him with a stark choice: state reformatory or enlistment in the U.S. Navy. Wertheim chose the Navy, a decision that would significantly alter the trajectory of his life. At just 17, he enlisted and was stationed in San Diego, where he discovered a new sense of purpose and capability.

In the Navy, Wertheim's aptitude for mechanics and organization shone through, and for the first time, he felt intellectually validated. His confidence soared, leading him to immerse himself in studying physics and chemistry and working in naval aviation. This period also marked the beginning of his investment journey. With the American economy recovering and the stock market flourishing, particularly in aerospace sectors, Wertheim used his Navy stipend to invest in LearJet stock. This investment was inspired by his meeting with Bill Lear, the company's founder, whose innovations in aerospace captured Wertheim's imagination. This early foray into investing ignited a passion that would define much of his future success.

Following his Navy service, Wertheim's industrious spirit continued to drive him. He took on various roles, including selling encyclopedias door-to-door, and attended Brevard Community College before pursuing engineering at the University of Florida. Despite not completing his degree, he found a new passion in optometry. While studying engineering, Wertheim worked for NASA, where his interest in visual instrumentation grew, ultimately leading him to optometry. In 1963, he seized an opportunity to formally study optometry through a scholarship at the Southern College of Optometry in Memphis. After earning his degree, he returned to South Florida and established an optometry practice, serving a predominantly working-class clientele.

Wertheim's passion for innovation did not wane. He continued to develop new technologies, working in his spare time to improve vision care. In 1969, he achieved a significant breakthrough by inventing a UV-absorbing eyeglass tint for plastic lenses, aimed at preventing cataracts. Although his initial royalty deal for this invention was marred by contract disputes, Wertheim's resolve remained unshaken. He founded Brain Power Inc. in 1970, where he continued to create and refine eyewear technologies. One notable success was a chemical formula to remove dyes from plastic lenses, a discovery he believed would make him a millionaire. This invention, along with others, solidified Brain Power Inc.'s position as a leading optical tint manufacturer, serving major companies like Zeiss, Bausch & Lomb, and Polaroid.

Over the years, Wertheim's company expanded its product range, including dyes used to diagnose and treat various conditions such as dyslexia and Parkinson’s-related dyskinesia. With over 100 patents and an annual net income of approximately $10 million, Wertheim's financial success provided him with the resources to further his investment interests. Forbes has compared Wertheim's investment strategies to those of renowned investors like Warren Buffett, Peter Lynch, and John Bogle. His approach involves investing in companies with strong patent portfolios, a practice rooted in his background as an inventor. Wertheim carefully evaluates patents and invests in companies like IBM, 3M, and Intel, adhering to a principle of buying stocks he truly believes in, even if their prices decline.

Wertheim's investment philosophy also reflects a long-term approach, exemplified by his enduring investments in Microsoft and Apple. Despite market fluctuations, he has maintained his positions in these companies, allowing his investments to appreciate and generate substantial dividends. However, not all investments have been successful, as evidenced by his experience with Blackberry and the impact of the Federal Reserve’s interest rate hikes in 1982, which led to significant losses. Nevertheless, Wertheim has adeptly used these setbacks to his advantage, employing strategies like leveraging tax losses and investing in companies with strong management.

Now in his 80s, Wertheim continues to invest and support causes close to his heart. He has signed the Bill Gates and Warren Buffett Giving Pledge, committing to donate at least half of his wealth to public education. His philanthropy is evident at institutions such as Florida International University and the University of Florida Health's Scripps Institute, where his donations have funded state-of-the-art facilities and research. Wertheim also chairs the Dr. Herbert and Nicole Wertheim Family Foundation, which supports various educational, cultural, and healthcare initiatives.

Herbert Wertheim’s story is a testament to how ingenuity, perseverance, and strategic investment can transform one's life from modest beginnings to extraordinary success. His journey from an unassuming eye doctor to a billionaire investor and philanthropist illustrates not only the potential for financial achievement but also the profound impact of giving back to the community.