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Donald Trump’s Entire Financial History in One Short Video

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Presented by: Texas Precious Metals


The Money Project is an ongoing collaboration between Visual Capitalist and Texas Precious Metals that seeks to use intuitive visualizations to explore the origins, nature, and use of money.

In this motion graphic video, we break down the full story behind Donald Trump’s wealth.

Not only do we examine his major business successes and failures, but we even look back at real estate’s prominent role in the history of the Trump family. To conclude, the video breaks down Trump’s net worth and financial history, while highlighting some of the help he has gotten along the way in building his fortune.

Family Matters

The story started well over a century ago with Donald’s grandfather, Frederick Trump. Real estate runs deep in the blood of the Trump family, and Frederick was actually the first Trump to own a hotel. During the famous Klondike gold rush in Canada, Frederick owned an inn and restaurant that served gold miners. When he passed away, he left an estate worth just under $500,000 in today’s dollars to his heirs.

His eldest son, Fred Trump, carried on the Trump legacy by going into business with his mother, using the nest egg for seed money. Fred became a very successful builder in New York City’s outer boroughs. He built single family houses in Queens in the 1920s, helped pioneer the supermarket with the “Trump Market” during the Great Depression, and even built barracks for the Navy during World War 2.

But Fred’s real cash cow came in 1949, when he got a government loan to build Shore Haven Apartments in Brooklyn. The Federal Housing Administration paid him $10.3 million, but he was able to build the apartments for significantly less.

The government kept overpaying for houses in Brooklyn and Queens, and Fred kept building them. According to Donald, his father became “one of the biggest landlords in New York’s outer boroughs”. By the time of Fred’s death in 1999, it’s said that Fred Trump was worth between $250 and $300 million.

Donald’s Vision

Born in Queens, Donald J. Trump would join his father’s company early on in his career. His father’s cash cow was now gone, but Donald had a different vision for the Trump name anyways. He envisioned the “Trump” brand as being synonymous with luxury worldwide.

To do this, in the mid-1970s, Donald went into real estate in Manhattan. Relying on the business connections and creditworthiness of his old man, he borrowed a “small sum” of 1 million dollars to get started.

Trump’s Biggest Successes

Trump’s top three business successes include the Grand Hyatt, 40 Wall Street, and the Apprentice.

1. Grand Hyatt

In 1976, Donald Trump and Hyatt partnered to buy the rundown Commodore Hotel near Grand Central Station. At the time, the whole neighborhood was in disarray with many nearby buildings on the verge of foreclosure. Trump negotiated contracts with banks and the city in an effort to fund the hotel and rejuvenate the area.

The end result was the Grand Hyatt, a 25-story hotel, which Trump sold his share of for $142 million in 1996.

2. 40 Wall Street

Another big win for Trump was with 40 Wall Street, once the tallest building in the world. He bought it for $1 million after years of vacancy. Today, it’s prime real estate in the financial district, worth more than $500 million – a huge return.

3. The Apprentice

The Apprentice was also a financial home run for Trump. As the show’s host and executive producer, he raked in $1 million per episode for a whopping 185 episodes.

Trump’s Biggest Failures

Like many businessmen, Donald Trump’s career has also had his share of failures.

1. Atlantic City

Donald’s biggest failure may be his ill-fated venture into casinos in Atlantic City.

The bleeding started in 1988 when he acquired the Taj Mahal Casino. Funded primarily by junk bonds, the massive casino would be $3 billion in debt within just a year of opening. Trump, who racked up $900 million in personal liabilities, had the business declare bankruptcy. To stay afloat, he ditched many personal assets such as half of his stake in the company, a 282-foot megayacht, and his airline.

Things were dire, and Trump’s dad chipped in by providing a $3.5 million loan in the form of casino chips to help make a loan payment.

Trump’s casino holding company would enter bankruptcy two additional times: in 2004, after accruing $1.8 billion in debt, and in 2009, after missing a bond payment during the Financial Crisis. Each time, Trump’s stake in the company fell.

2. Other Businesses

While three of Trump’s four bankruptcies involved Atlantic City casinos, he has also struggled in other ventures outside of real estate: Trump airlines, Trump Vodka, Trump: The Game, Trump Magazine, Trump Steaks, and Trump University were all destined for failure. Trump Mortgages was launched in 2006 right before the real estate crash, and it also imploded.

Trump’s Net Worth

According to Trump’s campaign, he is worth “in excess of TEN BILLION DOLLARS”. However, he has also been accused in the past of artificially inflating his net worth. Forbes and Bloomberg News both have drastically different estimates of his wealth at $4.5 billion and $2.9 billion respectively.

Using the middle of the road figure from Forbes, here is how Trump’s wealth breaks down:

  • 48% is in New York City real estate
  • 7% is in cash and liquid assets such as investments
  • 8% is in golf courses
  • 4% is in “toys” such as helicopters, penthouse, or his Boeing 757 plane

The remainder includes other real estate assets outside of New York City, as well as the value of the licensing agreements for hotels, real estate, or other Trump products.

Trump as an Investor

So how did Donald Trump do in managing his fortune?

See Trump’s performance as an investor compared to other benchmarks in the next video for The Money Project.

About the Money Project

The Money Project aims to use intuitive visualizations to explore ideas around the very concept of money itself. Founded in 2015 by Visual Capitalist and Texas Precious Metals, the Money Project will look at the evolving nature of money, and will try to answer the difficult questions that prevent us from truly understanding the role that money plays in finance, investments, and accumulating wealth.

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Markets

The Dominance of U.S. Companies in Global Markets

U.S.-based companies have a heavy weighting in global equity markets. In most industries, their market capitalization exceeds 50% of the total.

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global markets

U.S. Companies Dominate Global Markets

Are global indexes as “global” as you think they are?

With the aim of tracking market performance around the world, these indexes incorporate securities from various regions. However, while the number of securities may be relatively well diversified across countries, a dollar perspective tells a different story. When market capitalization is taken into account, country weightings may become much more unbalanced.

Today’s visualization is based on a concept by S&P Dow Jones Indices that shows the percentage of U.S.-based companies in global sectors and industries as of December 31, 2019. The calculations reflect the market capitalization of companies in the S&P Global Broad Market Index (BMI), an index that tracks over 11,000 stocks across 50 developed and emerging economies.

Percentage of U.S. Companies by Sector

U.S-based companies—those that maintain their primary business affairs in the U.S.—are a major component of many global sectors and industries.

Here’s how it breaks down:

Sector% of U.S.-based CompaniesMost U.S.-heavy Subsector
Information technology73%Software (86%)
Health care65%Health care providers (82%)
Utilities53%Electric utilities (57%)
Real estate51%Equity REITs (69%)
Consumer discretionary49%Specialty retail (73%)
Consumer staples46%Household products (74%)
Industrials46%Aerospace & defense (73%)
Energy44%Energy - other (73%)
Financials44%Financials - other (73%)
Materials30%Chemicals (41%)

U.S.-based companies make up a staggering 73% of the information technology (IT) sector. However, China may soon threaten this dominance. The Made in China 2025 plan highlights new-generation IT as a priority sector for the country.

The U.S. is still the world’s leader, but China is coming up very fast.

Rebecca Fannin, Journalist & Author of Tech Titans of China

Healthcare is also heavily skewed towards U.S-based stocks, which make up 65% of the sector’s market capitalization. This weighting is perhaps not surprising given the success of many U.S. healthcare companies. In Fortune’s list of the 500 most profitable U.S. companies, 41 healthcare organizations made the cut.

The materials sector has the smallest weighting of U.S.-based stocks, but they still account for almost one-third of the overall market capitalization. Three American companies are in the sector’s top 10 holdings: Air Products & Chemicals, Ecolab, and Sherwin-Williams.

U.S. Equity Views in a Global Context

Given the high weighting of U.S. stocks in global sectors and industries, having a U.S. view is important. This refers to investors gaining a clear perspective on the risks and opportunities that exist in the country. Investors can consider the trends influencing American companies in order to help explain stock performance.

U.S. stock dominance also impacts geographic diversification. While it helps non-U.S. investors overcome their home bias, American investors may want to consider targeting specific international markets for well-rounded exposure.

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Demographics

Mapped: The Ins and Outs of Remittance Flows

Every year, migrant workers send billions of dollars back to their home countries—reaching $550 billion in 2019. Where do these remittance flows wind up?

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Mapped: The Ins and Outs of Remittance Flows

The global immigrant population is growing at a robust pace, and their aggregate force is one to be reckoned with. In 2019, migrants collectively sent $550.5 billion in money back to their home countries—money transfer flows that are also known as remittances.

Remittances serve as an economic lifeline around the world, particularly for low- and middle-income countries (LMICs). Today’s visualization relies on the latest data from the World Bank to create a snapshot of these global remittance flows.

Where do most of these remittances come from, and which countries are the biggest recipients?

Remittances: An Origin Story

Remittances are a type of capital flow, with significant impacts on the places they wind up. These money transfers have surpassed official aid being sent to LMICs for decades, and in this day and age, are rivaling even Foreign Direct Investment (FDI) flows.

Remittance flows mainly help improve basic living standards such as housing, healthcare, and education, with leftover funds going towards other parts of the economy. They can also be a means for increasing the social mobility of family and friends back home.

Altogether, 50% of remittances are sent in either U.S. dollars, or the closely-linked currencies of Gulf Cooperation Council (GCC) countries, such as the Saudi riyal. It’s not surprising then, that the U.S. is the biggest origin country of remittances, contributing $68.5 billion in 2018—more than double that of the next-highest country, Saudi Arabia, at $33.6 billion.

Remittance Flows As A Safety Net

The impact of remittances on LMICs can vary depending on what you measure. In absolute terms, the top 10 LMIC recipients received $350 billion, or nearly 64% of total remittances in 2019.

Top Remittance Recipients in 2019 (USD)

RankCountryRemittance Inflows% of Nominal GDP
#1🇮🇳 India$82.2B2.8%
#2🇨🇳 China$70.3B0.5%
#3🇲🇽 Mexico$38.7B3.1%
#4🇵🇭 Philippines$35.1B9.8%
#5🇪🇬 Egypt$26.4B8.8%
#6🇳🇬 Nigeria$25.4B5.7%
#7🇵🇰 Pakistan$21.9B7.9%
#8🇧🇩 Bangladesh$17.5B5.5%
#9🇻🇳 Vietnam$16.7B6.4%
#10🇺🇦 Ukraine$15.9B11.8%

India tops the chart as the largest remittances beneficiary, followed by China and Mexico. Interestingly, these three countries are also the main destinations of remittance flows from the U.S., but in the reverse order. Mexico and the U.S. have one of the most interconnected remittance corridors in the world.

However, the chart above makes it clear that simply counting the dollars is only one part of the picture. Despite these multi-billion dollar numbers, remittances are equal to only a fraction of these economies.

By looking at remittances as a percentage of nominal GDP, it’s clear that they can have an outsize impact on nations, even if the overall value of flows are much lower in comparison.

Top Remittance Recipients in 2019 (% of GDP)

RankCountryRemittance Inflows% of Nominal GDP
#1🇹🇴 Tonga$0.19B38.5%
#2🇭🇹 Haiti$3.3B34.3%
#3🇳🇵 Nepal$8.6B29.9%
#4🇹🇯 Tajikistan$2.3B29.7%
#5🇰🇬 Kyrgyz Republic$2.4B29.6%
#6🇭🇳 Honduras$5.3B21.4%
#7🇸🇻 El Salvador$5.6B20.8%
#8🇰🇲 Comoros$0.14B19.3%
#9🇼🇸 Samoa$0.17B18.4%
#10🇵🇸 West Bank and Gaza$2.6B17.6%

It’s clear that the cash influxes provided by remittances are crucial to many smaller countries. Take the Polynesian archipelago of Tonga, for example: even though it only saw $190 million in remittances from abroad, that amount accounts for nearly 40% of the country’s nominal GDP.

Will The Remittance Tides Turn?

The World Bank projects remittance flows to increase to nearly $600 billion by 2021. But are such projections of future remittance flows reliable? The researchers offer two reasons why remittances may ebb and flow.

On one hand, anti-immigration sentiment across major economies could complicate this growth, as evidenced by Brexit. The good news? That doesn’t stop immigration itself from taking place. Instead, where these migrants and their money end up, are constantly in flux.

This means that as immigration steadily grows, so will remittance flows. What’s more, fintech innovations have the potential to bolster this progress, by making money transfers cheaper and easier to access.

Tackling [high transaction costs] is crucial not only for economic and social development, but also for improving financial inclusion.

UN ESCAP, Oct 2019

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