In 20-30 years, Zuckerberg is going to be in a league of his own.
Companies and Billionaires
51–60 of 107 posts
Re: Companies and Billionaires
#52Naïve question. The richest people in the world, who are billionaires from pretty much just stock. How do they convert that to real money to buy things? Do they just simply wait until the stock is at a high point, and sell a lot? Maybe move that money to other investments?
There are a couple of ways (disclosure, I am not a billionaire :-)) First, nobody really needs a billion dollars in "cash" it just doesn't make sense as "cash" deposits pay a below inflation rate return in most places (meaning it loses its "value" over time) and even a negative interest rate in some places. Second, it isn't like there is a "fixed amount of money" in the world and if someone has all of it, everyone el…
Somewhat related, if you or someone else knows: is there any special process for transferring or handling large amounts of money? For example, if you're buying a $5m private jet, how would you pay for it? A regular check or bank transfer?
Also, do the banks keep any security checks in place? e.g. If I had $10m and there was a request to transfer out $5m, I'd definitely like the bank to run it by me.
Re: Companies and Billionaires
#53I don't understand why the source of the Koch brothers' wealth is listed as "Diversified". They owe their fortune to petroleum.
Looking at their wealth breakdown now: $12.7B from Georgia-Pacific (a "pulp and paper company") $10.6B from "Other Businesses" $9.6B from Koch Pipeline (petroleum) $4.5B from Flint Hills Resources (refining/chemicals/biofuels) $3.8B from Molex ("connectors and interconnect components") $3.5B from Koch Fertilizer $3.0B from Invista ("polymers and fibers") all other sources below $2B Looks pretty diversified to me. Jus…
Great so every time I spring for the brand name molex connectors I'm helping those assholes out.
Re: Companies and Billionaires
#54Earlier quoted context omitted.
There are a couple of ways (disclosure, I am not a billionaire :-)) First, nobody really needs a billion dollars in "cash" it just doesn't make sense as "cash" deposits pay a below inflation rate return in most places (meaning it loses its "value" over time) and even a negative interest rate in some places. Second, it isn't like there is a "fixed amount of money" in the world and if someone has all of it, everyone el…
Somewhat related, if you or someone else knows: is there any special process for transferring or handling large amounts of money? For example, if you're buying a $5m private jet, how would you pay for it? A regular check or bank transfer? Also, do the banks keep any security checks in place? e.g. If I had $10m and there was a request to transfer out $5m, I'd definitely like the bank to run it by me.
Short answer to your question is "Private Banking":
https://en.wikipedia.org/wiki/Private_banking
You have a specific account manager, who you know, and is in communication with you about that Jet purchase. Yes, it probably is a wire, but maybe to an escrow, depending.
Re: Companies and Billionaires
#55In 20-30 years, Zuckerberg is going to be in a league of his own.
My money is on Bezos to take the #1 spot and stay there for decades.
Re: Companies and Billionaires
#56Earlier quoted context omitted.
Looking at their wealth breakdown now: $12.7B from Georgia-Pacific (a "pulp and paper company") $10.6B from "Other Businesses" $9.6B from Koch Pipeline (petroleum) $4.5B from Flint Hills Resources (refining/chemicals/biofuels) $3.8B from Molex ("connectors and interconnect components") $3.5B from Koch Fertilizer $3.0B from Invista ("polymers and fibers") all other sources below $2B Looks pretty diversified to me. Jus…
Great so every time I spring for the brand name molex connectors I'm helping those assholes out.
sounds like someone's jealous. why are they assholes when they're selling you a product that helps you?
Re: Companies and Billionaires
#57Earlier quoted context omitted.
Looking at their wealth breakdown now: $12.7B from Georgia-Pacific (a "pulp and paper company") $10.6B from "Other Businesses" $9.6B from Koch Pipeline (petroleum) $4.5B from Flint Hills Resources (refining/chemicals/biofuels) $3.8B from Molex ("connectors and interconnect components") $3.5B from Koch Fertilizer $3.0B from Invista ("polymers and fibers") all other sources below $2B Looks pretty diversified to me. Jus…
Great so every time I spring for the brand name molex connectors I'm helping those assholes out.
They are in a ton of different industries:
http://www.dailykos.com/story/2014/4/1/1288957/-Sign-the-ple...
Re: Companies and Billionaires
#58Earlier quoted context omitted.
Well if you are asking where did their initial wealth come from, you are correct, it came from oil. But keep in mind that they have more than doubled their net worth in the past 8 years. And in those 8 years it was a diversified portfolio that more than doubled their wealth, so given that more than half their net worth was accumulated with a diversified company I can see where Forbes is coming from. http://www.huffin…
For those who are wondering (I was), doubling your money in 8 years is about an average return of 9%. So pretty solid, but not absurd. Although I imagine such returns, with acceptable risk levels, become harder to find when you are dealing with 11-figures.
The Rule of 72 will save you from having to wonder from now on.
Re: Companies and Billionaires
#59Earlier quoted context omitted.
Great so every time I spring for the brand name molex connectors I'm helping those assholes out.
sounds like someone's jealous. why are they assholes when they're selling you a product that helps you?
For completely orthogonal reasons. It's not about what they sell, it's about what they do with the money. More US political candidate financing this year came from the Koch brothers than both major political parties combined. [1]
Congressional policy decisions always have to keep future fundraising prospects in mind. It is not a stretch to describe candidates who depend on Koch largesse to win as "bought and paid for." Keystone XL (a certain pipeline Koch Industries stands to benefit disproportionately from) is a controversial issue, and it ought to be considered with an eye towards policy impact rather than next year's electability.
[1] http://www.nytimes.com/2015/01/27/us/politics/kochs-plan-to-...
Re: Companies and Billionaires
#60Earlier quoted context omitted.
There are a couple of ways (disclosure, I am not a billionaire :-)) First, nobody really needs a billion dollars in "cash" it just doesn't make sense as "cash" deposits pay a below inflation rate return in most places (meaning it loses its "value" over time) and even a negative interest rate in some places. Second, it isn't like there is a "fixed amount of money" in the world and if someone has all of it, everyone el…
Somewhat related, if you or someone else knows: is there any special process for transferring or handling large amounts of money? For example, if you're buying a $5m private jet, how would you pay for it? A regular check or bank transfer? Also, do the banks keep any security checks in place? e.g. If I had $10m and there was a request to transfer out $5m, I'd definitely like the bank to run it by me.
For a slightly unrelated but perhaps interesting side note, I doubt most billionaires are flying around in $5m private jets. A Gulfstream G650 runs around $66m. Roman Abramovich owns an Airbus A340-300, among other aircraft, that Wikipedia lists at $238m. $5m might get you a custom interior with a nice exterior paint scheme.
If anyone is interested, here's a link to a firm that designs custom interiors/exteriors for private jets. I believe the Airbus with "Bourkhan" written on the side is Abramovich's. http://www.pegasusdesign.mc/
Disclosure, I'm not a billionaire, I just like airplanes.