Back in 1848, in Northern California, a worker helping to construct Sutter’s Mill made the discovery of a lifetime: There was gold in them there hills.
The news excited folks all around the country – and beyond – sparking a rapid mass migration to the American west, one of the largest in our nation’s history. It’s estimated that around 300,000 people moved to California between 1848 and ‘55: the era that has since become known as the California Gold Rush.
But some folks took a different approach; one that would prove to be much more lucrative. The people who became the wealthiest of the Gold Rush era were storekeepers, hoteliers, and suppliers of tools, clothing, food, and alcohol.
This idea of being the one who sells ‘the picks and shovels’ became a business proverb of sorts. And it certainly still applies today.
This post originally appeared at InvestorPlace.