There Are FAR More Billionaires Than We Think!

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Edited By: Andrew Gonzales

Music Courtesy of: Epidemic Sound

Select Footage Courtesy of: Getty Images

All materials in these videos are for educational purposes only and fall within the guidelines of fair use. No copyright infringement intended. This video does not provide investment or financial advice of any kind.

#wealth #billionaire #money

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According to Forbes, America has seven hundred and thirty-five billionaires worth a combined four point five trillion dollars.

But how many billionaires are there really?

When Forbes publishes their list, they add a small qualifier that almost nobody notices, there are 735 LISTED billionaires in America, because nobody knows how many there are really. Forbes employs more than 50 people in 16 countries to compile their list. According to their methodology article they use public financial records, interviews with employees, rivals, attorneys and they attempt to validate the numbers by contacting the billionaires directly. Some co-operate and give Forbes access to their personal finances so they can report a more accurate number, but magazine admits that most don’t.

Much of the list is an estimated guess, but there are also a lot of billionaires out there that will never show up on the list even though they should.

One group are the crony government leaders using their countries central bank as their own personal credit card, but I think there is another group that is even more interesting than that. Forbes and Bloomberg who both get a lot of online attention from their billionaires list have behind closed doors admitted that they have no way of keeping track of the most common type of billionaire in America.

In an interview with the New York Times, Kerry Dolan the editor who overseas the Forbes team responsible for the annual list gave the profile of a billionaire that they would never be able to find. She told the times that “it’s someone who quietly sold a stake in a business for, say, $250 million in the ’90s, then invested it well.”…

That’s it, that’s all there is to it. Two hundred and fifty million dollars is a big exit especially back in the nineties, but it wouldn’t have made the news unless it was a well-known household brand. Most good businesses of this size are boring and only sell their products to other businesses. As a former investment banker who has worked on a lot of these deals personally, I can tell you that two hundred and fifty million dollar exits happen every day and sometimes it’s not even the founders who are walking away with all of the money.

Silent early investors in a private company would only show up on the paperwork in the part that tells the acquirer where to send the money. If a person took their earnings from a sale in nineteen ninety-nine at the height of the dot com bubble and put it all into the market and then spent a meagre one point two million dollars a year ($1,200,000) or one hundred thousand dollars a month on themselves, they would now be worth three point three billion dollar’s ($3,300,000,000) and nobody would know unless they wanted them to.

There are flashy individuals that want to show off their wealth and there are billionaires that couldn’t avoid attention because the companies they founded are too well known but most billionaires are invisible to everybody but their close family, their accountant and the IRS. There are three very important reasons why these billionaires do this and two fascinating strategies they use to make sure they stay under the radar.

The first reason that most billionaires try very hard to stay off the Forbes list is because of the problems that come with public notoriety. Lottery winners are routinely harassed by people begging for money, filing frivolous lawsuits and family members pitching them a business idea over thanksgiving dinner. The average lottery winner is seven times more likely to declare bankruptcy than the average American and the public attention they get is a big reason why.

Not only is getting chased for your money annoying and costly it can be dangerous.
Known wealthy people are the logical target of kidnappings, burglaries and blackmail. High profile business leaders and celebrities employ personal security but it’s difficult for these teams to always cover all family members. Personal security is also expensive and inconvenient because they need to travel, work and live with you to remain effective. A nice relaxing life enjoying your riches can quickly turn into another job of managing a security team.

The best defence is stealth, if nobody knows who you are or what you have in your Schwab account then all of these problems can be avoided, and that’s just the first reason.

[finnwheatley]

About a decade ago I asked a very senior private banker in London how many of his clients who were billionaires were in Forbes. He said only a quarter or a bit more. Most aren’t. Especially if you made money in emerging markets or from a private business

[mikestanmore]

1. Stay off Twitter.
2. Don't buy Twitter.
3. Don't do TV interviews.

[firestar-ertd]

Thank you! This video has helped me (a billionaire) to hide my vast supplies of wealth (20$ I found on the sidewalk) from the public eye (my mom)

[foreman]

Several years ago my father sold around 250 acres of land to a gentleman that owned a private independent oil company here in Texas. We knew he was fairly well off. But a year or so after the fact, he sold out his interest in the company and it became public knowledge. He was worth 4.3 billion dollars. I believe it was published in forbes or texas monthly, I can't recall. No one would have ever known. He was looking for hunting properties for when he retired. I won't mention the name here but he was a nice guy. He only came with his wife and a couple of other of his employees when he looked around the place. I remember my father saying he would have asked more for the place if he knew at the time, lol.

[crocopie]

If I were a billionaire, I would definitely don't want to let everyone know that I am one.

[RandyVincent]

The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.

[masonm]

Alternate title: Min-maxing Stealth Wealth

[Killrwasp]

As an airplane-aficionado, I was traveling and saw the tail # of a private plane at my home airport. Being fascinated by it, I wanted to know where it came from. Looked it up and it led to a LLC, which led to a winery in Napa, which led to a family, which led to a gentleman who was very wealthy. Even when ppl w/ wealth try to hide, there are ways to find them even if it wasn’t my initial intention lol

[alexsteven.m]

From my perspective, this highlights the importance of having a competitive advantage as investors. Merely mirroring the market strategies of others is insufficient in achieving optimal results. I am currently grappling with the decision to invest in the current market, as it presents both uncertainty and opportunity. Could you share your insights on this matter

[Josh-]

Most rich people don't want you to know they are rich.

My wife is a millionaire. She comes from old money. REALLY old money. "Mayflower" levels of old money. Her mother manages a portfolio in the tens of millions of dollars and has investments and trusts set up for her three children.

You'd never guess this from how my wife grew up or lived now. Her life has always been comfortable but modest. Her parents sent their children to private school, but they lived in a modest house and drove simple cars. Even now, my wife and I live in a modest house and own an older Prius and a newer Prius.

People are always surprised to learn about her finances. So was I, as she never told me a word about how wealthy her family was for the seven years that we dated. I didn't learn about her wealth until we filed our first tax return together. I thought there was an "off by zero" error on her itemizations; more accurately, I thought there was an "off by SEVERAL zeroes" error.

We keep everything carefully invested and stay quiet about our money, as it's all locked away in trusts, retirement accounts, and mutual funds. In a few years we will retire and use that money to travel the world together.

[MA]

Staying off of that particular list has never been a problem for me.

[MasterFallenHero]

I like this channel because it reminds me of a different life I had in investment banking. I started at red Bank then moved to a boutique investment firm for high net worth individuals.

I'll never forget it because this scraggly college kid comes into my office off a favor of someone at the boutique. He inherited some sum of money from a grandparent and needed help. I figured he was there as a favor from the owner.

Nope. His grandparent had legitimate equity in a major business you likely hear about weekly. Sold out of it in the 80s and invested it into a number larger than I felt comfortable managing on my own. So I got a few senior partners involved, and it was still a struggle.

We never had any billionaires but I can say from working at a boutique firm like that you'd be alarmed at the capital flowing in a small community and how well its hidden from the publics eye. People who want you to see they have money will let you know. Otherwise it's hidden.

[TheChees]

alex hormozi and one of his friends said it best, "unless you have a message you want to share to the world, its better to stay unknown, than known" in other word if you are rich stay quite and live life with a peace of mind, unless you have something you really what to teach the world.

[lasgio_]

My friends and I have always agreed that a private life is one of the most valuable things money can never buy. Once youre in the public interest, you could never pay the world enough to forget you who are.

Once my friend group gets rich, no one will ever know our name or who we are. We were never popular and have never had any sort of significant presence online which we are grateful for. We live in such a small bubble that we're blessed no one is thinking about us. I definitely dont want to be living rent free in anyones head. The most I'm fine being known for is an expert or influencer in a niche business industry. I dont want to be on the news, media or talked about. No one will ever have me as an interest. Privacy is fucking amazing

[YFolermira]

Creating wealth entails establishing positive routines, such as consistently setting aside funds at regular intervals for sound investments. Financial management is a vital subject that many avoid, often leading to future regrets.

[rogersnick]

Stealth wealth is the way to go these days. Live your life, rule your world and no one even knows to cancel you.

[yamuiemata]

Most old money like monarchy's and royalties are not in the forbes list And they are far more wealthy than most of the members in forbes list

[cameroncook]

I've spoken to some wealthy people in central London; there are far more than 735 billionaires the subject isn't up for debate. Just walk around places like Harrods and you'll understand. If you were a billionaire, would you let Forbes put you on a public list? The answer is most likely no.

Someone I know of worked for a head of state years ago.
Publically, he had a few million $.
Secretly, he had tens of millions hidden in Switzerland

[shirleneunglesbee]

The rich are money minded. That is one thing I learnt from the start. I have always wanted to build wealth. I have set out $167k that I had been saving since 2020, and I want to put it in the stock market so I can grow my wealth. Any recommendations?

[lasgio_]

Also, please more videos like this. Obscure wealth videos are the best.