Good Bad Billionaire – Diane Hendricks: Building a Fortune

Podcast: Good Bad Billionaire – BBC World Service
Hosts: Simon Jack (BBC Business Editor), Zing Tsjeng (Journalist & Author)
Date: November 3, 2025
Episode Theme: An in-depth look at the life, business journey, and impact of Diane Hendricks – the richest self-made woman in America, founder of ABC Supply, and a major political donor. The hosts evaluate her as a “good, bad, or just another billionaire” by examining her wealth, power, philanthropy, controversies, and legacy.

Episode Overview

The episode profiles Diane Hendricks, tracing her journey from humble beginnings on a Wisconsin dairy farm, through personal and business adversity, to becoming a billionaire business leader in roofing supply. Hosts Simon Jack and Zing Tsjeng dig into her entrepreneurial grit, her family values, her ambitions, and her controversial political activity – ultimately inviting listeners to weigh in: Is she good, bad, or just another billionaire?

Early Life and Formative Experiences

[03:16] – [06:26]

• Roots in Rural Wisconsin: Diane Marie Smith was born in 1947 in Mondovi, WI, later moving to a 200-acre dairy farm. As the fourth of nine daughters, she described her childhood as loving and idyllic but marked by traditional gender roles.

  “I wish every child could be as loved as I was.” – Zing Tsjeng [03:53]

• Early Ambition and Adversity:
  • Dreamed of city life, business, and independence from an early age.
  • Became pregnant at 17 and was asked to leave high school but persisted to earn her diploma.

    “…it was embarrassing, but it was ok.” – Zing Tsjeng [04:30]

  • Married, moved to Janesville, worked in factories and real estate, divorced at 21 as a single mother.
  • Held various jobs, including as a Playboy bunny, to make ends meet.

Meeting Ken Hendricks & Early Ventures

[06:26] – [11:02]

• Business & Romantic Partnership:
  • Met Ken, a roofing contractor also from humble beginnings. Their courtship began professionally — she sold homes to him and quickly became romantic partners.
  • Their blended family: seven kids from previous and current marriages.
  • Jointly invested in real estate — buying, renovating, and renting 100 houses using rental income to finance new properties, especially during the economic downturn of the 1970s.

    “It’s about holding your nerve…grit your teeth and get through.” – Zing Tsjeng [09:22]

• Family Values:
  • All children received $100, a bag of nails, and a hammer as high school graduation gifts, instilling a work ethic.
  • Work ethic extended to 17 grandchildren.

Founding and Growing ABC Supply

[11:17] – [15:13]

• Seeing an Industry Need:
  • Ken noticed the roofing supply industry’s disorganization and poor customer service. Diane and Ken aimed to create a contractor-focused distributor.

    “We felt like roofers weren’t being treated with respect. That was part of our goal: to build a company that would help the guy in the pickup truck…” – Diane Hendricks, as quoted by Simon Jack [12:16]

  • 1982: During another recession, they risked everything as collateral for a $900,000 loan to buy three struggling supply businesses, founding ABC Supply.

    “The bank explained to Ken [that entrepreneur] meant risk taker…and they didn’t do business with risk takers.” – Simon Jack [13:35]

  • Rapid expansion: 3 locations and $4M sales to 25 locations and $82M in just two years.

    “That is extraordinary growth from $4m to $82m in two years.” – Simon Jack [14:46]

Scaling Up – Successes and Setbacks

[17:15] – [24:32]

• Massive Growth: By 1987, ABC Supply was the fastest growing company in the US, with $183M in revenue and 600 employees.
• Innovation: Launched related businesses (insurance, trucking, manufacturing), provided seminars and advertising for clients, attempting a “one-stop shop” approach.

  “If all these customers…were doing well, so would the Hendricks.” – Zing Tsjeng [19:30]

• Philosophy and Lifestyle: Deep patriotism, love of the outdoors, and pride in American tradition evidenced in business names ("American Patriot Insurance") and personal pursuits (motorcycling, Budweiser horses).
• Financial Risks:
  • Took a risky $100 million bond in 1997, causing losses due to high interest (25% market share but net loss).
  • Hired David Luck as COO, who streamlined operations and reduced staff turnover, helping pay off the bond early.

Local Influence: Rebuilding Beloit

[22:28] – [24:04]

• Urban Renewal Efforts:
  • Invested heavily in Beloit, transforming abandoned industrial properties into hubs for office, retail, and business, leveraging personal investments to retain employers.

    “It reminds me where one family or one business becomes synonymous with the town.” – Simon Jack [23:01]

• Controversy: Some locals resented the consolidation of community services in Hendricks-owned properties.

  “Why don't we just rename it Hendricksville?” – Bill Barth, Beloit Daily News [23:31]

Personal Tragedy and New Leadership

[24:32] – [25:57]

• Ken’s Death (2007): Ken died after a tragic accident at home.

  “I can count on my hand the number of nights I wasn’t with him in those 40 years.” – Diane Hendricks, via Simon Jack [24:54]

• Diane Takes Charge:
  • Despite pressure to sell, Diane became chairwoman, navigating grief and the 2008 financial crisis by scaling back, closing outlets, and seizing acquisitions (notably Bradco).
  • To acquire Bradco, took on a partner and risked partial ownership but earned it back within three years, maintaining market dominance.

Political Activity and Controversy

[28:26] – [34:42]

• Major Political Donor:
  • Longtime Republican supporter; donations became high-profile post-2012.
  • Played a prominent role in Governor Scott Walker’s anti-union initiatives, with large contributions and advocacy for “right to work” laws.
  • Supported Donald Trump’s 2024 campaign; total donations to GOP causes over $40 million.

  “…if you were in the Republican Party and your secretary said Diane Hendricks is on the phone, you’d definitely pick up.” – Zing Tsjeng [36:42]

• Tax Minimization:
  • Milwaukee Journal Sentinel reported Hendricks paid no state income tax for several years. Explained as legal under S corporation tax laws.

    “Wiggling out of tax requirements through administrative bureaucracy never goes down well.” – Zing Tsjeng [33:30]

Business Expansion & Present Day

[30:02] – [31:04]

• Business Milestones:
  • ABC Supply, after acquisitions, has over 1,000 locations and 20,000+ employees (2025).
  • The company is now five times bigger than when Ken died.
  • Further invested $85 million in Beloit’s renewal; starred in 2025’s A&E reality show “Betting on Beloit” with her daughter.

Philanthropy, Power & Legacy

[34:43] – [38:28]

• Philanthropy:
  • ABC Supply and the Hendricks Family Foundation have donated $65 million (mostly to Beloit).
  • Notable donation: $1.75 million for breast cancer research at University of Wisconsin.
  • Hosts judged this as “not as big as $22 billion would suggest.”
• Local and National Influence:
  • Instrumental in reviving Beloit’s economy and shaping Wisconsin’s political landscape.
  • Funded the $37 million ABC Supply baseball stadium; described as “playing SimCity with Beloit.”

Scoring Diane Hendricks

[31:31] – [38:28]

• Wealth:
  • Hosts awarded her 8/10 for wealth, noting the dramatic journey from rural obscurity to self-made billionaire.

    “She was one of lots of kids growing up on a rural dairy farm…divorced by 21, had to strike out on her own. Amazing.” – Simon Jack [31:46]

• Controversy:
  • Both gave a middle-of-the-road 5/10, noting her political influence and tax strategies aren't unusual for billionaires.
• Philanthropy:
  • Scored low, 3/10, as the giving is modest relative to fortune size.
• Power and Legacy:
  • Zing: 8/10, Simon: 7/10, recognizing local transformation, major political influence, but limited celebrity or tech-world profile.

Notable Quotes & Memorable Moments

• On risk-taking and grit:

  “I wish every child would eat homegrown vegetables as well.” – Simon Jack [03:55] “You gotta do what you gotta do sometimes.” – Diane Hendricks, via Zing Tsjeng [05:51]

• On family values:

  “When each child graduated high school, their graduation presents included $100, a bag of nails, and a hammer.” – Zing Tsjeng [10:02]

• On business motivation:

  “We felt like roofers weren’t being treated with respect...to build a company that would help the guy in the pickup truck and provide service and respect to everyone.” – Diane Hendricks, via Simon Jack [12:16]

• On legacy in Beloit:

  “Why don't we just rename it Hendricksville?” – Bill Barth, Beloit Daily News [23:31]

• On adversity and resilience:

  “I had to put the grief aside, then revisit it after the meetings. The first year was about making it through the day.” – Diane Hendricks, via Zing Tsjeng [25:25]

Key Takeaways

• Diane Hendricks’ journey is a classic, almost “old-fashioned” American dream: rising from rural hardship to billionaire status through relentless work, family entrepreneurship, and toughness through adversity.
• ABC Supply’s growth is a masterclass in old-school business scaling, focusing on under-served tradespeople and the fundamentals of supply chain management.
• Hendricks has had a significant, sometimes divisive local impact through urban renewal efforts and wielded major political influence—especially in Wisconsin.
• Her philanthropy, while meaningful locally, falls short of expectations for someone of her wealth.
• The hosts see her as emblematic of the “nuts and bolts” American business culture, making “lots of money the old-fashioned way”—but invite listeners to weigh in: good, bad, or just another billionaire?

Listener Interaction

• Listeners encouraged to vote on Diane Hendricks’ status by email or WhatsApp, especially Beloit residents.
• Feedback segment includes reactions to previous episodes' featured billionaires.

Next Episode Preview:
The next episode will focus on Michael O’Leary of Ryanair, promising more debate on cost-cutting, company culture, and airline dominance.

End of Content Summary