A Tribute to FedEx Founder Fred Smith

Three of us were fortunate to have studied together at Northwood University under some of the most iconic professors of our time, including Dr. V. Orval Watts, Dr. David E. Fry, Mr. Jeffrey Bennett, Dr. Robert Serum and Dr. Dale M. Haywood.

It was in Dr. Haywood’s business strategy class that we were first introduced to Frederick Wallace Smith, a name that became synonymous with entrepreneurial vision, relentless innovation, and patriotic leadership.

Born Aug. 11, 1944, in Marks, Mississippi, and passing on June 21, 2025, at the age of 80 in Memphis, Tennessee, Fred Smith left behind a towering legacy. He was the founder of FedEx and one of America’s greatest business strategists. His life reads like a classic American success story; a testament to grit, service, and vision.

Early life and education
Smith’s early years were marked by both hardship and determination. His father, James Frederick Smith, founded the Toddle House restaurant chain and the Smith Motor Coach Company, later acquired by Greyhound in 1931. Tragically, Fred’s father passed away when he was just 4 years old, leaving him to be raised by his mother with the help of his uncles. A rare bone disease left him debilitated during childhood; by age 10, he had recovered fully.

Fred attended Presbyterian Day School and Memphis University School for high school. He became a licensed amateur pilot as a teenager, an early sign of the role aviation would play in his life. In 1962, Smith enrolled at Yale University, where he earned a degree in economics in 1966. At Yale, he joined Delta Kappa Epsilon and Skull and Bones, forming friendships with future leaders like George W. Bush and John Kerry. Smith and Kerry bonded over a shared passion for aviation and often flew together.

Following graduation, Smith served as a captain in the U.S. Marine Corps from 1966 to 1969. He completed two tours in Vietnam, flying in the back seat of the OV-10 Bronco as a forward air controller. He earned the Silver Star, Bronze Star, and two Purple Hearts for his service.

Birth of an Idea
In 1971, Fred Smith founded Federal Express (now FedEx) in Little Rock, Arkansas, investing $4 million of his inheritance (roughly $32 million today) and raising an additional $91 million in venture capital. He based the company on a concept he outlined in a 1965 Yale term paper, where he proposed a centralized, time-sensitive delivery service that would function like the Federal Reserve’s check-clearing system.

Smith believed society’s growing reliance on automation and technology would create a need for rapid, reliable shipment of items such as computer parts and documents. His idea was simple yet revolutionary: centralize shipping operations and utilize an air-ground network to ensure overnight delivery.

In 1973, FedEx launched operations in Memphis, Tennessee, which became the central hub for the initial 25 cities it served. Smith’s now-famous strategy was encapsulated in a bold slogan: “Everything moves through Memphis.” Even packages traveling short distances, such as those from Midland to nearby Detroit, were routed through Memphis to maximize efficiency, reduce costs, and ensure accuracy.

Early challenges and triumphs
Fred Smith’s road to success was not without its obstacles:
1. Unimpressed professor (and investors): Smith famously received a “C” on the paper at Yale that would later form the foundation of FedEx. His professor thought the idea impractical and the writing mediocre. Investors were initially skeptical, but Smith remained undeterred.

2. Regulatory Barriers: Navigating regulations from the Civil Aeronautics Board proved difficult. Smith successfully challenged burdensome air taxi weight restrictions, enabling FedEx to grow.

3. A Bet in Vegas: In a now-legendary story, after a crucial loan was denied, Smith took the company’s last $5,000 to Las Vegas and won $27,000 playing blackjack. The winnings covered a $24,000 fuel bill, buying FedEx one more week to survive and the rest is history.

4. High Start-Up Costs: Building a national delivery network from the ground up required massive upfront investment. Each state had its own set of complex rules in addition to federal regulations, complicating expansion.

From struggle to success
Smith was a maverick, innovator and path setter undeterred by steep challenges. FedEx didn’t turn a profit until 1976, three years after launching. But in that pivotal year, it posted a $3.6 million profit. That marked the turning point for a company that would soon become a global leader.

By fiscal year 2024, FedEx had grown into an $87.7 billion enterprise with $5.56 billion in operating income and $4.3 billion in net income. The company revolutionized the logistics industry, setting the gold standard for overnight delivery and global supply chain efficiency.

At the time of his death, Fred Smith’s net worth was estimated at $5 billion. But his true legacy lies in the infrastructure, innovation, and economic dynamism he helped create.

Champion of free enterprise
Fred Smith wasn’t just a businessman, he was a vocal advocate for free enterprise and market-based solutions. He believed there needs to be some regulation and that government had a role to play, but innovation and economic growth flourish best when markets are competitive, trade is open, and entrepreneurs are free to take risks.

He supported globalization, arguing that free trade enhances competition, lowers consumer costs, and fuels innovation. His views weren’t theoretical; FedEx itself was a product of global commerce and the efficiencies it can bring.

Smith was also a founding member of the Competitive Enterprise Institute (CEI), a leading think tank focused on limited government, economic freedom, and regulatory reform. Through CEI and other efforts, he supported policy research that defended capitalism, entrepreneurship, and the principles of personal responsibility and risk-taking.

Philanthropy and patriotism
In addition to his business and policy impact, Smith was a generous philanthropist. He donated millions to causes supporting veterans, education, and environmental sustainability. He believed in giving back, especially to the nation and institutions that had shaped him.

He supported programs for wounded warriors, scholarships for military families, and investments in aviation education. His gifts were not performative; they were grounded in personal experience and deeply held values.

He supported programs for wounded warriors, scholarships for military families, and investments in aviation education. His gifts were not performative; they were grounded in personal experience and deeply held values.

Conclusion: A life worth emulating
Fred Smith not only revolutionized global logistics; he also inspired generations of business leaders. Through his philanthropy and business acumen, Smith’s unwavering belief in the power of free markets, personal responsibility, and calculated risk-taking serves as a blueprint for entrepreneurs and executives today.

His story reminds us that vision and patriotism still matter. Smith didn’t wait for the government to solve problems; he created solutions. He transformed an entire industry, helping to make the American economy more efficient and competitive in the process.

In a time when entrepreneurship can seem undervalued and free enterprise underappreciated, Smith’s life is a powerful counterexample. His commitment to country, business excellence, and personal discipline is a model worth celebrating and emulating.

We must remember that Fred Smith was more than a brilliant entrepreneur. He was a patriot, philanthropist, and relentless advocate for American invention and innovation. He built one of the most impactful companies of the 20th century from a college term paper and a clear vision.

Smith’s life is a unifying reminder of what’s possible when character, courage, and capitalism come together.

America and the world could use more Fred Smiths.

This piece — which also is co-authored by Bob Thomas, Chief Operating Officer for the Michigan Chamber of Commerce; Dr. Daniel G. DeVos, President and CEO of DP Fox Ventures and Chairman of the Board of the NBA’s Orlando Magic; and Dr. Ed McBrien, CEO of Manhattan Beer Distributors — originally was posted by the Midland Daily News.