Walmart, Samsung, Koch Industries and Hermes have built some of the biggest fortunes to ever be handed down between generations.
The saying, or at least the sentiment, sounds familiar in any language: “Shirtsleeves to shirtsleeves in three generations.”
The adage is often attributed to Andrew Carnegie, but the notion that family wealth ends up squandered travels far. “Stable to stars to stable,” an Italian version goes. “From paddy to paddy in three generations,” runs the Chinese saying.
But in an era of mind-boggling wealth and gaping inequality there seems little danger of that happening any time soon to the world’s 25 richest clans, who control $1.1 trillion of wealth (see below graphic), according to data compiled by the Bloomberg Billionaires Index.
From Mars bars to Hermes scarves, supermarkets to hotels and data firms to drug makers, the source of this wealth is varied and its scale is startling: more than the market cap of Apple Inc., all the deposits held by Citigroup Inc. or the entire GDP of Indonesia.
And any calculation is likely to be a lowball figure. The wealth of families like the Rothschilds or Rockefellers is too diffuse to value. The nature of many dynastic fortunes — backed by decades and sometimes centuries of assets and dividends — can obfuscate the true extent of their holdings. Clans whose source of wealth is currently unverifiable or derives primarily from the state, such as the sprawling House of Saud, are also absent.
Bloomberg’s categorization of family wealth also excludes first-generation fortunes and those in the hands of a single heir. That means just three Asian families make the list and none from China, reflecting the relatively recent wealth boom experienced by the region. That should soon change. Family offices are proliferating in the region and tycoons like Li Ka-shing are starting to hand over their empires to their sons and daughters.
The dwindling of once-storied fortunes like the Pulitzers, Vanderbilts and Woolworths illustrate how common it is for even the biggest family fortunes to be squandered. “There are a host of hurdles families must tackle to ensure that their wealth is safeguarded through the generations,” said Rebecca Gooch of Campden Wealth. “Strategic planning, education and communication is key.”
Some billionaires are taking a different tack. Bill Gates and Mark Zuckerberg are among the entrepreneurs who have signed up for Warren Buffett’s Giving Pledge and committed to dedicating the majority of their wealth to philanthropy.
This approach embodies another Carnegie dictum: “To spend the first third of one’s life getting all the education one can. To spend the next third making all the money one can. To spend the last third giving it all away to worthwhile causes.”
Rank
1
1
Company Walmart
Wealth $ 151.5 bn
Industry Consumer retail
Base Bentonville, Arkansas
Walmart is the world's largest retailer by revenue with sales of $500 billion from almost 12,000 stores worldwide. Holding companies Walton Enterprises and the Walton Family Holdings Trust own half the retailer, a stake that’s the foundation of the world's biggest family fortune.
Walmart is the world's largest retailer by revenue with sales of $500 billion from almost 12,000 stores worldwide. Holding companies Walton Enterprises and the Walton Family Holdings Trust own half the retailer, a stake that’s the foundation of the world's biggest family fortune.
GENERATIONS
1 1945: Sam Walton buys his first store
2 1992: Sam Walton dies. Eldest son Rob becomes chairman.
3 2016: Steuart Walton replaces his father Jim on the board of Walmart
GENERATIONS
1 1940: Fred Koch co-founds the Wood River Oil and Refining Company
2 June 2018: Deteriorating health forces David Koch to step down from leadership positions in his family's business
Rank
3
3
Company Mars
Wealth $ 89.7 bn
Industry Confectionery, pet care
Base McLean, Virginia
GENERATIONS
1 1883: Frank Mars is born. He contracts polio as a young boy and is unable to walk to school
2 1932: Forrest E. Mars Sr. moves to the U.K.
3 1999: Forrest Mars Jr. retires from active management
4 2017: Mars completes acquisition of pet health care services provider VCA
Rank
4
4
Company Anheuser-Busch InBev
Wealth $ 54.1 bn
Industry Beverages
Base Belgium
GENERATIONS
1 1895: Edmond Willems, the owner of the Artois brewery, dies
2 1926: Brewery releases Stella Artois as a Christmas beer
3 1968: Artois takes over the Dommelsch Brewery
4 1987: Merger of Artois and Piedboeuf breweries
5 2008: Anheuser-Busch and InBev combine
GENERATIONS
1 1837: Thierry Hermes starts to make riding gear for noblemen
2 1880: Business moves to 24 Faubourg Saint-Honore, Paris
3 1902: Grandsons Emile Maurice Hermes and Adolphe Hermes become joint presidents of the company
4 1950s: Emile's sons-in-law, Robert Dumas and Jean-Rene Guerrand, diversify operations
5 1978: Jean-Louis Dumas establishes global network of stores
6 2013: Axel Dumas becomes co-CEO
GENERATIONS
1 1924: Pierre Wertheimer negotiates a perfume contract with fashionista Coco Chanel
2 1963: Jacques Wertheimer, known as "the kid" to Coco Chanel, takes over after his father's death
3 2018: Chanel releases its financial results for the first time
Rank
7
7
Company Reliance Industries
Wealth $ 43.4 bn
Industry Industrial
Base Mumbai, India
GENERATIONS
1 1957: Dhirubhai Ambani returns to India from Yemen
2 2002: Elder son Mukesh takes over chairmanship
GENERATIONS
1 1883: Emil Quandt acquires a textile company owned by his late father-in-law
2 1933: Guenther Quandt joins the Nazi Party
3 1954: Herbert Quandt inherits the business and later increases its holding in BMW to 50%
4 2015: Johanna Quandt, Herbert's widow, dies
Rank
9
9
Company Cargill
Wealth $ 42.3 bn
Industry Industrial
Base Minneapolis, Minnesota
GENERATIONS
1 1865: William W. Cargill becomes the owner of a grain flat house
2 1884: John H. MacMillan starts working in his father's bank in Wisconsin
3 1936: John MacMillan Jr. takes over as president after his father steps down
4 1960: Erwin Kelm becomes first Cargill president who is not a family member
5 1980: Cargill enters the coffee-trading business
6 2011: Mosaic Company and Cargill agree to split-off
Rank
10
10
Company Boehringer Ingelheim
Wealth $ 42.2 bn
Industry Pharmaceuticals
Base Ingelheim, Germany
GENERATIONS
1 1885: Albert Boehringer buys a small tartar factory in Germany
2 1939: Albert Boehringer dies
3 1992: Erich von Baumbach, son-in-law of Albert Boehringer Jr., appointed chair of shareholders' committee
4 2010: Company celebrates its 125th anniversary
Rank
11
11
Company Aldi
Wealth $ 38.8 bn
Industry Consumer retail
Base Essen and Muelheim, Germany
GENERATIONS
1 1913: Albrecht grocery store is opened in Essen, Germany
2 1971: Theo Albrecht kidnapped for 17 days and $2 million was paid for his release.
3 2014: Karl Albrecht dies
GENERATIONS
1 1931: Gerard Mulliez born into a family that runs a clothing firm
2 1961: Mulliez opens the first Auchan store in France
3 1998: Auchan expands into Hungary
4 2016: 100th hypermarket opens in Russia
Rank
13
13
Company Sun Hung Kai Properties
Wealth $ 34.0 bn
Industry Real Estate
Base Hong Kong
GENERATIONS
1 1972: Kwok Tak-Seng, a grocery wholesaler, incorporates Sun Hung Kai Properties
2 2008: Walter Kwok is ousted as chairman after a feud with his brothers
Rank
14
14
Company Cox Enterprises
Wealth $ 33.6 bn
Industry Communications, automotive
Base Atlanta, Georgia
GENERATIONS
1 1898: James M. Cox buys a newspaper
2 1957: Jim Cox Jr. takes over the company after his father's death
3 1988: Jim Kennedy, grandson of founder James Cox, is promoted to CEO and chairman
4 2018: Alex Taylor takes charge of Cox Enterprises
GENERATIONS
1 1881: Nicholas Pritzker arrives in Chicago
2 1936: Abram and Jack Pritzker branch out from law and start investing in real estate
3 1957: Grandsons Jay and Donald Pritzker create the Hyatt Hotel chain
4 1999: Jay Pritzker dies
Rank
16
16
Company Samsung
Wealth $ 30.9 bn
Industry Consumer electronics
Base Seoul, South Korea
GENERATIONS
1 1938: Lee Byung-chull starts a business exporting fruit, vegetables and fish
2 1987: Lee Kun-hee becomes chairman of Samsung Group
3 2014: Lee Kun-hee has a heart attack and is hospitalized
GENERATIONS
1 1929: Ruben Rausing becomes a partner in a packaging company
2 1995: Hans Rausing sells his shares to brother Gad
3 2012: Hans' son, Hans Kristian Rausing, pleads guilty to preventing the burial of his wife after she dies from a drug overdose
GENERATIONS
1 1934: Roy Thomson buys his first newspaper, the Timmins Press
2 2006: Ken Thomson dies
3 2018: Thomson Reuters sells a majority stake in its financial and risk unit to Blackstone
Rank
19
19
Company SC Johnson
Wealth $ 28.2 bn
Industry Household goods
Base Racine, Wisconsin
GENERATIONS
1 1886: Samuel C. Johnson starts touring the countryside selling flooring
2 1906: Herbert F. Johnson Sr. becomes a partner
3 1928: Herbert F. Johnson Jr. inherits the company at age 28, after his father's death
4 1955: Samuel C. Johnson, the great-grandson of the founder, starts as product director
5 1992: SC Johnson buys the Drackett Company
Rank
20
20
Company Dassault Group
Wealth $ 27.8 bn
Industry Diversified
Base Paris, France
GENERATIONS
1 1944: Marcel Bloch is deported to the Buchenwald concentration camp
2 1986: Aviation tycoon Serge Dassault takes the helm after his father's death
3 2018: Serge Dassault dies
Rank
21
21
Company Enterprise Products Partners
Wealth $ 26.0 bn
Industry Natural gas and crude oil
Base Houston, Texas
GENERATIONS
1 1968: Dan L. Duncan founds Enterprise Products Partners with $10,000
2 2010: Enterprise Products remains under family control after Dan L. Duncan dies suddenly
Rank
22
22
Company Roche
Wealth $ 25.1 bn
Industry Pharmaceuticals
Base Basel, Switzerland
GENERATIONS
1 1896: Fritz Hoffmann-La Roche launches a medicine company at 28
2 1932: Fritz Hoffmann's son, Emanuel, dies in a traffic accident
3 1953: Lukas Hoffmann joins the Roche board
4 1996: Andre Hoffmann joins the board of Roche
Rank
23
23
Company Hearst Corporation
Wealth $ 24.5 bn
Industry Media, Business Information
Base New York, New York
GENERATIONS
1 1880: George Hearst buys the San Francisco Examiner
2 1887: After being expelled from Harvard University, William Randolph Hearst is given the San Francisco Examiner by his father in the hope he would settle down
3 1956: His second son, William Randolph Hearst Jr., wins a Pulitzer Prize for international reporting
4 1974: William Randolph Hearst Sr.'s granddaughter, Patty, is kidnapped for 19 months
5 2018: Fitch Group becomes a wholly-owned Hearst business
Rank
24
24
Company Estee Lauder
Wealth $ 24.3 bn
Industry Cosmetics
Base New York, New York
GENERATIONS
1 1947: Estee Lauder receives her first major order for $800 of products from Saks Fifth Avenue
2 1995: Estee Lauder retires
3 2009: Grandson William Lauder, who expanded the company's international presence as CEO, becomes chairman
GENERATIONS
1 1946: Pietro Ferrero creates a sweet paste from hazelnuts, sugar and cocoa in war-ravaged Italy
2 1964: First jar of Nutella is produced
3 2017: Ferrero appoints its first non-family chief executive, Lapo Civiletti