Unformatted text preview: This book has been optimized for viewing
at a monitor setting of 1024 x 768 pixels. All the Money
in the World Contributors
Alex Ulam All the Money
in the World
How the Forbes 400
Make– and Spend–
E D I T E D BY Peter W. Bernstein
A N D Annalyn Swan Alfred A. Knopf New York 2007 this is a borzoi book
published by alfred a. knopf
Copyright © 2007 by ASAP Media, LLC
All rights reserved. Published in the United States by Alfred A. Knopf,
a division of Random House, Inc., New York, and in Canada by
Random House of Canada Limited, Toronto.
Knopf, Borzoi Books, and the colophon are registered trademarks
of Random House, Inc.
Forbes 400 is a trademark of Forbes LLC.
Image of Sam Walton (p. 17): AP Photo/Danny Johnston;
image of Warren Buffett (p. 17): AP Photo/Seth Wenig, File.
Library of Congress Cataloging-in-Publication Data
All the money in the world : how the Forbes 400 make—and spend—
their fortunes / edited by Peter W. Bernstein and Annalyn Swan.
p. cm.—(A Borzoi book)
Includes bibliographical references and index.
1. Rich people—United States. 2. Millionaires—United States.
3. Wealth—United States. I. Bernstein, Peter W.
II. Swan, Annalyn. III. Forbes Inc.
3 Part One: What It Takes 1.
4. Education, Intelligence, Drive
Winning Is Everything 23
87 Part Two: Making It 5.
8. Blue-collar Billionaires
West Coast Money
Entertainment and Media
Beyond Wall Street 109
176 Part Three: Spending It 9.
13. Conspicuous Consumption
Giving It Away
Power and Politics 205
306 Afterword: Money and Happiness 327 Appendix: The Forbes 400, 1982–2006
For the past twenty-ﬁve years, Forbes magazine has compiled its now legendary list of the four hundred wealthiest Americans and considered the state
of the nation’s vast fortunes. Its issues on the subject have been rich in facts
and ﬁgures, on who’s up and who’s down, on whether Bill Gates (or Donald
Trump) has a billion more or less. But the list is perforce numbers-driven; the
issues focus less on the character of the people and the peculiar world they
inhabit. What makes the Forbes 400 members tick? Who gets to the top—and
why? How different are they from more average Americans? Are they happy?
What lessons about money and life can we glean from them?
In All the Money in the World: How the Forbes 400 Make—and Spend—
Their Fortunes, we set out to answer these questions and to create a collective
proﬁle of America’s superrich over twenty-ﬁve years. While this book was
created in collaboration with Forbes, much of the information comes from
our own interviews, original research, and never-before-compiled data.
When we ﬁrst approached Tim Forbes, the company’s chief operating
ofﬁcer, with the idea for the book, he enthusiastically endorsed it. Throughout the research and writing, many at the magazine eased our way, sharing
insights, opening archives and ﬁles, providing phone numbers and e-mail
addresses, and helping in every way possible. Pete Newcomb, the longtime
editor of the Forbes 400 list, was an inexhaustible source of information
about members of the 400, as was his successor, Matthew Miller. James
Michaels, the ﬁrst editor of the Forbes 400, shared with us information, anecdotes, and insights from the early years. Additionally, Mitchell Rand, director of information technology, provided original and insightful analysis of
Forbes 400 data over the last twenty-ﬁve years, while Barbara Strauch, director of Forbes’s book division, reviewed the data and manuscript and compiled
the deﬁnitive list of all Forbes 400 members. Their efforts are immediately
evident in the many charts, graphs, and tables throughout the book, to which
designer Nigel Holmes has brought his distinctive ﬂair.
At the heart of All the Money in the World are the voices of the Forbes 400
members themselves, as well as those of their families. Many gave us extensive viii Acknowledgments
interviews. (A few requested anonymity; we honored their wishes.) Others
responded—sometimes at length—to a questionnaire we sent. Still others
maintained an e-mail correspondence with us. We are most grateful to them
for their time and insights into every aspect of Forbes 400 careers, philanthropic causes, and much more: Sheldon Adelson, John E. Anderson, Leon
Black, Timothy Blixseth, Michael Bloomberg, Eli Broad, Peter Buffett, Susie
Buffett, S. Truett Cathy, Jim Clark, Mark Cuban, David Dufﬁeld, Red Emmerson, Ken Fisher, Ted Forstmann, Daniel Gilbert, David Gold, Stanley S. Hubbard, J. B. Hunt, Jon Huntsman Jr., Michael Hufﬁngton, Wayne Huizenga,
David Kaplan, Vinod Khosla, Charles Koch, David Koch, Jerome Kohlberg,
Herbert Kohler Jr., Bruce Kovner, Ronald Lauder, John Malone, Ross Perot,
Ross Perot Jr., T. Boone Pickens, Marc Rich, Julian Robertson, Arthur Rock,
Wilbur L. Ross, Richard Mellon Scaife, Charles Schwab, Steve Schwarzman,
Charles Simonyi, Ram Shriram, Robert F. X. Sillerman, John Sobrato, James
Tisch, Donald Trump, Ivanka Trump, Mortimer Zuckerman.
This book has also beneﬁted greatly from the wisdom of many writers,
professors, and analysts who have thought and written about wealth. Each is
credited in the Notes section, at the top of the chapters in which they are
quoted. We owe a number of them special thanks: the writers Nelson W.
Aldrich Jr., Ken Auletta of The New Yorker, Dr. Paul Babiak (industrial psychologist and author), Ron Chernow, Richard Conniff, Edward Jay Epstein,
David A. Kaplan of Newsweek, Dr. Michael Maccoby (psychoanalyst and
author), Washington Post business columnist Steven Pearlstein, Matthew
Symonds of The Economist, and Thayer Cheatham Willis. A number of professors gave generously of their time and insights: Raphael Amit (Wharton
School, University of Pennsylvania), Joseph Astrachan (Kennesaw State University), John C. Coffee (Columbia University Law School), Pablo Eisenberg
(Public Policy Institute, Georgetown University), K. Anders Ericsson (Florida
State University), Charles Geisst (Manhattan College), Alexander Horniman (Darden School of Business, University of Virginia), Christopher Jencks
(Harvard University), Steven Kaplan (University of Chicago Business School),
Andrew Keyt (Chicago Family Business Center, Loyola University), Josh
Lerner (Harvard Business School), Anthony Mayo (director, Leadership Institute, Harvard Business School), Eli Noam (Columbia University Business
School), Peter Singer (Princeton University), David A. Skeel Jr. (University of
Pennsylvania), George Smith (Stern School of Business, New York University), James Allen Smith (Georgetown University), Roy C. Smith (New York
University), Robert J. Sternberg (dean of the School of Arts and Sciences, Acknowledgments
Tufts University), Jonathan Taplin (Annenberg School for Communication,
University of Southern California), David Waterman (Indiana University),
and Jerry White (Caruth Institute of Entrepreneurship, Cox School of Business, Southern Methodist University). In many cases, they are also the
authors of well-known books, which are listed in the Notes section.
A major theme of All the Money in the World is how the Forbes 400 spend
their money. Many are philanthropists and have created foundations of their
own. Others try to inﬂuence politics. Several people were particularly helpful in describing the universe of charitable giving and the ways in which
money can buy power. William Luers, former president of the Metropolitan
Museum of Art in New York and now head of the United Nations Association
of the USA, was a valuable guide, as was Vartan Gregorian, president of
the Carnegie Corporation. Others whose insights enrich the book included
Rich Avanzino, president, Maddie’s Fund; Joe Breiteneicher, president, The
Philanthropy Initiative; Kathy Bushkin, chief operating ofﬁcer, United
Nations Foundation; Chuck Collins, cofounder of Responsible Wealth; William Dietel, president, F. B. Heron and Pierson/Lovelace Foundation; Joan
DiFuria and Stephen Goldbart, codirectors, Money, Meaning & Choices
Institute; Sara Hamilton, of Family Ofﬁce Exchange; Dr. Lee Hausner, of the
family-wealth consulting ﬁrm IFF Advisors; John Healy, former president,
Atlantic Philanthropies; Todd Millay, executive director, Wharton Global
Family Alliance; Aryeh Neier, president of the Open Society Institute; Judith
Stern Peck, director of the Money, Values and Family Life Project, Ackerman
Institute for the Family; Tim Stone, president, and Ryan Nguyen, research
manager, NewTithing Group; Celia Wexler, vice president for advocacy,
Common Cause; and Rod Wood, Wilmington Trust.
The “Beyond Wall Street” chapter beneﬁted, in particular, from the advice
of experts who helped us navigate the often arcane world of high ﬁnance.
We are grateful to John K. Castle, former president of famed Wall Street
investment-banking ﬁrm Donaldson Lufkin & Jenrette and now chairman of
Castle Harlan, for giving us the beneﬁt of his encyclopedic knowledge of the
history of Wall Street and of the various ﬁnancial developments of the past
twenty-ﬁve years. Also providing insight were Zachary Bagdon, executive
director, International Center for Finance, Yale School of Management; Steve
Drobny, cofounder and partner of Drobny Global Advisors and author of
Inside the House of Money; Steve Greenberg of Allen & Company; Erik
Hirsch, chief investment ofﬁcer, Hamilton Lane; Michael Karagosian, MKPE
Consulting; Alan Kosan, managing director, RogersCasey; Dick Kramlich, ix x Acknowledgments
cofounder and general partner of New Enterprise Associates; Bruce McGuire,
president of Connecticut Hedge Funds Association; Michael Peltz, executive
editor, Institutional Investor and Alpha; Charles Taylor, National Venture
Capital Association; and David B. Williams, managing partner, Williams
We are also grateful to the following for their help on an array of subjects,
ranging from how money works in Hollywood to how members of the
Forbes 400 enjoy themselves and invest their money: Banker Mark Buchman;
Diane Byrne, editor, Power & Motoryacht; George Cooke, entertainment
lawyer, Manatt, Phelps & Phillips, LLP; Janet Healy, former Walt Disney
Company studio executive and producer; Gregg Kilday, ﬁlm editor at The
Hollywood Reporter; Tobias Meyer, worldwide head of contemporary sales,
Sotheby’s; Craig Moffett, Stanford C. Bernstein entertainment analyst; Tom
Pollock, ex-chairman of MCA/Universal Pictures and co-owner of Montecito
Picture Company; Farhad Vladi of Vladi Private Islands; William D. Zabel,
founding partner, Schulte Roth & Zabel, LLP. Additionally, Louise Grunwald
and Mary Sharp Cronson provided insights into the manners and mores of
the wealthy world. Family and friends not only shared stories and offered
support but in many cases helped with contacts and arranging interviews.
Throughout our work on the book we were aided by a number of talented
young researchers. Karl Moats, a student at Columbia University, proved
indefatigable in compiling vast lists of data about everything from which sectors create the most wealth to the number of immigrants and women on the
list. He was ably assisted by Erin Gaetz, Courtney Myers, and Mary-Catherine
Lader, all members of the Forbes summer intern program for college students. Whenever we encountered problems in running facts or people to
ground, we consulted Anne Mintz, director of knowledge management at
Forbes. In the ﬁnal stages of editing we beneﬁted from the fact-checking of
Cesar Suero and Jason Storbakken at Forbes. We are also grateful to Monie
Begley Feurey and Laurie Baker at Forbes for their interest in, and promotion
of, the book.
At Knopf we were fortunate to work with Erroll McDonald, a superb
editor in every sense of the word. His suggestions about how to use the fascinating data compiled from twenty-ﬁve years of Forbes 400 issues proved
especially important to the collective portrait that emerges from these pages.
Against all odds Robin Reardon mastered the many moving pieces—
manuscript, charts, graphs, boxes—and kept us on course, as did Kathy
Hourigan, Ellen Feldman, Andy Hughes, and Tracy Cabanis. Virginia Tan’s Acknowledgments
design elegantly weds the two parts of the book—the running text and the
graphic elements—and Peter Mendelsund’s cover design is both classy and
powerful. Knopf publicists Paul Bogaards and Erinn Hartman gave enthusiastic support to the project. And from the beginning, our lawyer, Robert Barnett, was there behind us, supporting the idea in every way.
Above all we are deeply grateful to the wonderful team of writers and
reporters who spent months ﬂeshing out the themes of the book in the various chapters, and then helped us through the endless checking of every detail.
Their knowledge and command of their subjects illuminate every page: Paul
Berger, Anna Isgro, Gwen Kinkead, and Alex Ulam. A brief biographical
sketch of each writer is included below. To them all, our deepest thanks.
Paul Berger is a British freelance writer based in New York. His work has
appeared in the New York Times, the Washington Post, U.S. News & World
Report, Online Journalism Review, and Denmark’s Weekendavisen. He is a
contributing editor to three books, including the New York Times best seller
Secrets of the Code. (Chapters 2, 3, 9, 10, 11, 13)
Anna Isgro, a freelance writer and editor based in the Washington, D.C., area,
was an associate editor at Fortune magazine and editor of US News Business
Report. She has contributed to a variety of book projects, including The New
York Times Practical Guide to Practically Everything and the TurboTax Income
Tax Handbook. (Chapters 1, 5, 11, 12)
Gwen Kinkead, a prizewinning journalist and author, was a senior editor at
Worth and Fortune magazines, and has contributed to The New Yorker and the
New York Times. (Chapters 4, 7, 8)
Alex Ulam is a New York City–based freelance writer who specializes in architecture and urban planning. His work has appeared in Architectural Record,
Landscape Architecture, Wired, Archaeology, and the National Post of Canada.
(Chapter 6) xi All the Money
in the World Introduction T he Forbes 400 is the dominant symbol of wealth in America. It recalls
the earlier 400 list of Mrs. Astor but differs from hers in one telling
respect. Whereas the original 400 referred to the collection of socially prominent New York families who ﬁlled the ballroom of Mrs. Astor in the late nineteenth century, the Forbes index spotlights individual wealth. It measures the
size of this or that personal fortune. It asks not where you came from or who
you work for, but who’s richer? It’s the big-banana index—simple, primal,
direct—and for those reasons irresistible.
Malcolm Forbes, a passionate believer in fortune-making, established the
list in 1982. There was nothing elitist in his ebullient approach to wealth.
Forbes was unashamed by his fortune; he relished the idiosyncratic (and he
knew the value of publicity in promoting his brand). His favorite form of
transportation was neither the everyman’s Chevy nor the aristocrat’s polo
pony, but a motorcycle and a hot-air balloon—both of which kept him and
his eponymous magazine, Forbes, in the news. Several years before the creation of the 400 list, Forbes developed a Cost of Living Extremely Well Index
(CLEWI), a cheeky riff on a traditional Cost of Living Index, which measures
the price of staples. The CLEWI (see page 207) charted the changing prices of
yachts, caviar, cigars, and private planes. Similarly, Forbes presented its 400 as
celebrities, treating them the way People treated actors or Sports Illustrated
home-run hitters. The reported numbers had a kind of celebrity ﬂash: A fortune was a batting average.
It seems remarkable that the Forbes 400 list, today endlessly quoted
around the world, is only twenty-ﬁve years old. (B. C. Forbes, Malcolm’s father 4 All the Money in the World
and the magazine’s founder, published a brief precursor of the list in 1918,
naming the thirty richest Americans of the time, but it did not take hold.)
The Forbes 400 is a particular product of its era, a living reﬂection of recent
history. It captures a period of extraordinary individual and entrepreneurial
energy, a time unlike the extended postwar years, from 1945 to 1982, when
American society emphasized the power of corporations. The gross domestic
product (GDP) in the United States has more than doubled since 1982, and
may soon triple. The size of American personal fortunes has more than kept
pace. In 1982 only thirteen billionaires were on the Forbes list, and you
needed $75 million to make the cut. Today you must be a billionaire. In 1982
the combined net worth of the 400 represented 2.8 percent of the GDP. By
2006 that ﬁgure had risen to 9.5 percent. (The percentage actually reached
12.2 percent of the GDP in 2000, during the Internet boom.) More generally,
in 2005 the wealthiest 1 percent of Americans claimed a percentage of the
national income not equaled since 1928. Only the Gilded Age, the period
from the Civil War to the 1890s, and the 1920s can withstand comparison to
the last twenty-ﬁve years in terms of wealth accumulation.
For many people (not least, before his death, Malcolm Forbes himself) the
Forbes 400 represents a powerful argument—and sometimes a dream—
about the social value of wealth in contemporary America. In this view, great
wealth does not (at least in the United States) suggest an aristocratic or privileged group of people who inherited their positions. It means enterprising
individuals, a marvelous meritocracy of money. Those who make fortunes
are an ever-changing, ever-churning group of remarkable people who ﬂourish in the land of opportunity. They bring jobs, energy, ideas, and even joy to
their society. They have been responsible, in the late twentieth century, for
extraordinary advances in technology, the invention of new ﬁnancial instruments, and the efﬁcient restructuring of American industry. Money is ﬂuid.
Money is restless. In 1982 twenty-four Du Pont heirs were among the four
hundred wealthiest Americans. By 1999 no Du Ponts remained on the list.
New money was supplanting old. It was wealth’s way.
To be sure, many take the other side of the argument. Why commemorate
greed, competition, and dollar one-upmanship? What does it say about
America that the wealth of four hundred individuals should, in 2006, equal
almost one-tenth of the annual output of a nation of 300 million people? To
skeptics, the Forbes 400 symbolizes a period of avarice, excess, and selﬁshness.
All the Money in the World does not join in these arguments. Instead it
recounts a more nuanced and personal story. At times anecdotal, at times Introduction 5 6 All the Money in the World
analytical, All the Money in the World tells the story of the individuals who
actually made the money, many of whom were interviewed for the book.
Taken together, their stories illuminate how fortunes are made, lost, and
spent today. The book is organized into three sections. The ﬁrst, What It
Takes, examines the character of fortune-makers, looking at such factors as
risk taking, luck, and education in helping them get ahead. The second, Making It, explores how their money was made, with particular emphasis given to
the booming ﬁelds of technology, ﬁnance, and entertainment and media
(while also reporting on the more traditional, so-called blue-collar fortunes).
The third, Spending It, looks at what the wealthy do with their money, focusing on conspicuous consumption, heirs, family feuds, and philanthropic and
All the Money in the World also contains a rich collection of charts and
graphs that detail intriguing facts about wealth (many analyzed here for
the ﬁrst time) gleaned from the twenty-ﬁve years of the list. A few of the
highlights: • In...
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