The Family Fortunes... That Outlived Their Family
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- Опубліковано 5 жов 2024
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The super-rich are self-made. So if you’re broke, it’s not your parents’ fault. It’s your own.
Sorry to break it to you, but only one fifth of millionaires were handed wealth by their parents.
As for billionaires, a study by the American Economic Association looked into the Forbes 400 list to discover that only 32% belonged to very rich families.
That means if you’re under 30 and have a billion in the bank, then you definitely got it from mum and dad.
But either way it doesn’t matter, because by the time your grandkids get hold of the daily fortune, your gene pool will have gone from rags to riches and back again.
Or at least that’s the proverb.
“Clogs to clogs is three generations”.
Maybe you’ve heard a version with ‘short-sleeves’ or something similar, but if not, don’t worry. You probably know an example in your own life of a time when a family became wealthy only to lose it all by the third generation.
The idea is the first generation works hard to gain wealth, the second generation works hard to maintain wealth, and the third generation works hard to spend wealth.
But some versions have it that the reason the grandkids end up with nothing is because it was their parents - the original heirs to the fortune - who didn’t share the same values as their entrepreneurial forebears..
Surely the proverb isn’t true though?
Surely we just want it to be true because it feeds into our natural sense of jealousy and inequality?
After all, business dynasties like Trump and Rockefeller aren’t going away anytime soon. If anything, they’re getting richer.
And the nepo-babies of Hollywood prove you don’t need looks or talent to become a successful model or actor, just a dad who was once in a rock band.
Before, a business could only survive on its name if it was a law firm, accountancy office, or funeral directors.
Nowadays, the family is kept off the branding and locked in the boardroom.
Rupert Murdoch’s vast media empire recently lined up his son to take over, and the makers of M&M and Snickers are making sure the levers of power are in the hands of the Mars family.
Look at Goldman Sachs and the Lehman Brothers; both started as family run before growing into towering behemoths. They certainly survived past the third generation.
Granted, Lehman Brothers went down in the 2008 financial collapse, but their ‘clogs to clogs’ journey took 174 years!
So is there a strategy to sustain family wealth or is this just survivorship bias?
How do some families ride out economic forces and shifts in society to ensure that future generations?
Who were the families that first jumped the gap between the have and have nots?
They were the merchants of Florence and they made Silicon Valley look like a lemonade stand.
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Meh
I'm not sure about what you said in your video, although most of them are "self-made" but they all have rich networks (in terms of capital funding, skills, and knowledge).
To this day, the name of the Pazzi family means "madmen" in Italian. That should be proof enough of the Medici family's power.
Damn that’s just downright disrespectful 😅
@@HowHistoryWorks That's the power of the Medici. The Pazzi were wiped out so completely that the Florentines started using their name as a synonim for madmen (as their last name was plural), in time it spread to the entire Tuscan language, and when Italy was unified Tuscan became the Italian language.
And now many who learn about them either pity them for their name or look up what the hell happened for that name to become what it is.
@@lordMartiyaWould you happen know any quality English speaking channels on Italian history, especially pre-unification and earlier? :)
😂Julius Caesar must be proud
Cesare Borgia did dirty for Giovanni
I know of many individuals who were gifted assets when young that grew into a multi million dollar portfolio over time. I wonder if these people are considered self made millionaires????
You sound different today. Do you have a cold?
lol
Too many scones and cups of tea I’m afraid
On one-fifth of millionaires were handed wealth by their parents is misleading. How many first-time millionaires came from the upper middle class? That's what I want to know and address.
Yes those first lines were deeply sarcastic, I will try and lay it on thicker next time because you are right those figures are misleading at best.
Millionaire just means owning a house in the US.
Saw somewhere that the majority of entrepreneurs had some form of safety net usually by parents but could be generally family or spouse etc
Thanks for the awesome content and all the amazing videos!!
Thank YOU for watching them :)
My etate plan forces my heirs to run a foundation and spend most of it on research and charity. While they can cut Some out for themselves creatively, They'll have to make their own money if they want to spend it on hedonism. Take that kids 😂!
ai voice ?
Wow
10:48 oh... I get it!!!! 😅
What is there to get?! Nothing going on here!