Sir John Ellerman, 1st Baronet

John Ellerman
Born	1862 Kingston upon Hull, England
Died	1933
Residence	Mayfair, London, England Eastbourne, East Sussex, England
Occupation	Shipowner
Net worth	£37 million
Children	Sir John Ellerman, 2nd Baronet Bryher

Sir John Reeves Ellerman, 1st Baronet, CH (1862–1933) was an English shipowner and investor, believed to be the richest man in England. An accountant by training, he learned to identify underpriced companies and acquired them, often as sole stakeholder. His shipping interests were combined into the giant Ellerman Lines, and he also invested in newspapers, breweries, coal and prestige London property. Despite his huge wealth, his personal life was notably modest and private.

Ellerman was born in Kingston upon Hull, the only son of a Lutheran ship broker and corn merchant who had emigrated to England from Hamburg, Germany in 1850, and an English mother. His father died when he was nine, leaving an estate of £600. Ellerman spent part of his childhood in France and briefly attended King Edward VI School in Birmingham. Ellerman did not get on with his mother and lived independently from the age of fourteen, when he was articled to a Birmingham chartered accountant. After passing his articles he moved to London, where he turned down a partnership in one of the leading firms of the day to found his own practice, J. Ellerman & Co, in the City of London in 1886. He was one of the first important British businessmen with a professional qualification in accountancy. He was also one of the first businessmen to use modern accounting methods to identify underpriced companies that should be well suited for takeover.

From 1890 Ellerman began to create major business groups by buying up established businesses, typically ones which had a good product but were in managerial decline after the death of the founder. Most of these businesses flourished under his management. He raised funds from other investors where necessary, but held large stakes personally. The first of these groups was the Brewery and Commercial Investment Trust which appreciated by 1,300% in nine years.

In 1892 Ellerman made his first move into shipping by leading a consortium which purchased the Leyland Line from the late Frederick Richards Leyland, one of the largest shipowners in Britain. In 1901 Ellerman sold this business to J.P. Morgan for £1.2 million, who immediately folded it into the International Mercantile Marine Co.. Ellerman, however, immediately began to buy other shipping lines, and in 1902 he combined his interests into Ellerman Lines. He continued to expand the business, making inroads into the South African, Atlantic and Indian routes while buying rival lines on a regular basis.

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