By 1973, A Vietnam Vet’s Logistics Company Was Down To Its Last $5,000. The Former Marine Took The $5,000 To A Vegas Blackjack Table And Made Enough To Keep The Company Going. Five Decades Later, FedEx Founder Fred Smith Had Built A $5.3 Billion Fortune

Federal Express was down to its last $5,000, according to Roger Frock’s account. The money belonged to the company. It was the company’s last cash, and none of it was Fred Smith‘s personal money. Smith took it to Las Vegas anyway.

The trip paid for one week of jet fuel. For the rest of his life, Smith refused to call that week the moment that counted.

A Decorated Marine Builds an Airline From Scratch

Smith served in the Marine Corps from 1966 to 1969 as a platoon leader and forward air controller in South Vietnam. He served two combat tours, was honorably discharged as a captain and was decorated with a Silver Star, a Bronze Star and two Purple Hearts.

He founded Federal Express on June 18, 1971, using a $4 million inheritance. Operations began on April 17, 1973, with 14 Dassault Falcon jets and 389 employees. On the first day, the company delivered 186 packages across 25 US cities. Over its first two years, it lost $30 million.

According to Memphis magazine, paychecks during this stretch were sometimes postdated, and pilots occasionally paid for fuel with their personal credit cards.

What Happened After General Dynamics Said No

Fuel companies required Federal Express to pay in advance every Monday. In Frock’s account, that weekly advance came to $24,000. After the board of General Dynamics (NYSE:GD | GD Price Prediction) declined to put in more money, Smith flew to Las Vegas instead of going home.

Frock, who was then senior vice president of operations, describes what came next in his book Changing How the World Does Business. In Frock’s account, the company’s balance that Monday was $32,000. Frock recalls asking where the money came from and Smith answering, “I knew we needed money for Monday, so I took a plane to Las Vegas and won $27,000.”

Frock writes in the same book that he replied, “You mean you took our last $5,000? How could you do that?” As Frock tells it, Smith answered, “What difference did it make? Without the funds for the fuel companies, we couldn’t have flown anyway.”

One Week of Fuel and Nothing More

The money paid for one week of jet fuel. When the headline says the money kept the company going, it means that one week. The money bought time and little else. What carried the company through the following months was investor goodwill, employees who agreed to put off cashing their payroll checks, and later funding.

Smith’s own view was that the money played a minor role, though he took it as an omen that things would get better. He also said business school graduates would not recommend his move as a financial strategy.

A Date Nobody Has Pinned Down

The year of the trip remains uncertain. Frock places it in mid-July but does not name a year. Some accounts put it in 1973, and at least one puts it in or around 1974. The headline uses the earlier year.

From a Monday Fuel Payment to a Global Network

From that week, the company grew into FedEx (NYSE:FDX), which today offers a broad portfolio of transportation, e-commerce, and business services to customers around the world. Smith died in Memphis on June 21, 2025, at age 80. FedEx said the cause was natural. At the time of his death, Forbes estimated his net worth at $5.3 billion. About five decades separate that week of jet fuel from that fortune.

A Legend Its Subject Kept Shrinking

The most repeated story about Smith is the one he worked hardest to cut down to size. He called the $27,000 an sign and nothing more. The company survived the months that followed through delayed paychecks, patient investors and new money, and Smith never gave that credit to the Las Vegas trip.

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