Ranked: The World's Richest Families in 2020
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Ranked: The World’s Richest Families in 2020

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The World's Richest Families in 2020

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The World’s Richest Families in 2020

The COVID-19 pandemic hasn’t stopped the world’s wealthiest families from growing their fortunes. Over the past year, the richest family—the Waltons—grew their wealth by $25 billion, or almost $3 million per hour.

This graphic, using data from Bloomberg, ranks the 25 most wealthy families in the world. The data excludes first-generation wealth and wealth controlled by a single heir, which is why you don’t see Jeff Bezos or Bill Gates on the list. Families whose source of wealth is too diffused or opaque to be valued are also excluded.

The Full Breakdown

Intergenerational wealth is a powerful thing. It often prevails through market crashes, social turmoil, and economic uncertainty, and this year has been no exception.

Here’s a look at the 25 most wealthy families in 2020:

RankNameCompanyWealth, $BSectorLocation
1WaltonWalmart215Consumer services🇺🇸 Bentonville, Arkansas
2MarsMars120Consumer goods🇺🇸 McLean, Virginia
3KochKoch Industries109.7Industrials🇺🇸 Wichita, Kansas
4Al SaudN/A95Industrials🇸🇦 Riyadh, Saudi Arabia
5AmbaniReliance Industries81.3Industrials🇮🇳 Mumbai, India
6HermèsHermès63.9Consumer services🇫🇷 Paris, France
7WertheimerChanel54.4Consumer services🇫🇷 Paris, France
8Johnson (Fidelity)Fidelity Investments46.3Financials🇺🇸 Boston, New York
9Boehringer, Von BaumbachBoehringer Ingelheim45.7Health care🇩🇪 Inglheim, Germany
10AlbrechtAldi41Consumer services🇩🇪 Rhineland, Germany
11ThomsonThomson Reuters40.6Communication🇨🇦 Ontario, Canada
12Hoffmann, OeriRoche38.8Health care🇨🇭 Basel, Switzerland
13MulliezAuchan38.4Consumer services🇫🇷 Lille, France
14Cargill, MacMillanCargill38.1Industrials🇺🇸 Minneapolis, Minnesota
15Johnson (SC)SC Johnson37.3Consumer services🇺🇸 Racine, Wisconsin
16Van Damme, De Spoelberch, De MeviusAnheuser-Busch InBev36.8Consumer goods🇧🇪 Belgium
17QuandtBMW34.7Consumer services🇩🇪 Munich, Germany
18CoxCox Enterprises33.1Communication 🇺🇸 Atlanta, Georgia
19RausingTetra Laval32.9Materials🇬🇧 London, England
20NewhouseAdvance Publications31Communication🇺🇸 New York, New York
21ChearavanontCharoen Pokphand Group30.7Diversified🇹🇭 Bangkok, Thailand
22FerreroFerrero30.5Consumer goods🇮🇹 Alba, Italy
23KwokSun Hung Kai Properties30.4Real estate🇭🇰 Hong Kong
24PritzkerHyatt Hotels29.6Consumer services🇺🇸 Chicago, Illinois
25LeeSamsung29Diversified🇰🇷 Seoul, South Korea

*Note: The Al Saud’s net worth is based on cumulative payouts royal family members were estimated to have received over the past 50 years.

The Waltons are the richest family on the list by far, with a net worth of $215 billion—that’s $95 billion more than the second wealthiest family. Sam Walton, the family’s patriarch, founded Walmart in 1962. Since then, it’s become the world’s largest retailer by revenue.

When Sam passed away in 1992, his three children—James, Alice, and Rob—inherited his fortune. Now, the trio co-owns about half of Walmart.

In second place is the Mars family, with a net worth of $120 billion. The family is well-known for their candy empire, but interestingly, about half of the company’s value comes from pet care holdings. Mars Inc. owns several popular pet food brands, including Pedigree, Cesar, and Royal Canin—and it expanded its pet presence further in 2017 when it acquired VCA, a company with almost 800 small animal vet hospitals across the U.S. and Canada.

The Koch family is the world’s third-richest family. Their fortune is rooted in an oil firm founded by Fred C. Koch. Following Fred’s death in 1967, the firm was inherited by his four sons—Frederick, Charles, David, and William. After a family feud, Frederick and William left the business, and Charles and David went on to build the mega industrial conglomerate known as Koch Industries.

Despite being affected by the oil crash this year, the Koch family’s wealth still sits at $109.7 billion. Before David’s passing in 2019, he and his brother Charles were heavily involved in politics—and their political efforts were the subject of much scrutiny.

Richest Families, by Sector

It’s important to note that many of these families have diversified their investments across a variety of industries. For instance, while the Koch family’s wealth is largely concentrated in the industrial sector and commodities, they also dabble in real-estate—in May 2020, they made a $200 million bet on U.S. rental homes.

That being said, it’s interesting to see where each of these families started, and which sectors have bred the highest number of ultra-wealthy families.

Here’s a breakdown of each sector and how many families on the list got started in them:

SectorNumber of FamiliesTotal Wealth, $B
Consumer Services8514.3
Industrials4324.1
Consumer Goods3187.3
Communications3104.7
Health Care284.5
Diversified259.7
Financials146.3
Basical Materials132.9
Real Estate130.4

The top sector is consumer services—8 of the 25 families are heavily involved in this sector. Walmart helped generate the most wealth out of families in this space, while luxury brands Hermès and Chanel were the source of fortune for the next two wealthiest families.

Industrial is the second largest sector, with 4 of the 25 families involved. It’s also one of the most lucrative sectors—out of the top five wealthiest families on the list, three are in industrials. The Koch family is the wealthiest family in this category, followed by the Al Saud family and the Ambani family, respectively.

Communications and consumer goods are tied for third, with 3 of the 25 families in each. The Thomsons, who founded Thomson Reuters, are the wealthiest family in communications, while the Mars family has the highest net worth in the consumer goods sector.

Resilient, but not Bulletproof

Despite a global recession, most of the world’s wealthiest families seem to be doing just fine—however, not everyone on the list has been thriving this year.

The Koch family’s fortune dropped by $15 billion from 2019 to 2020, and the current political climate in Hong Kong has had a negative impact on the Kwok family’s real estate empire.

While intergenerational wealth certainty has resilience, how much economic and social turmoil can it withstand? It’ll be interesting to see which families make the list in 2021.

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Personal Finance

Is $1 Million Enough for Retirement in America?

The average American needs their retirement savings to last them over a decade. In which cities is $1 million enough to retire comfortably?

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retirement savings

Is $1 Million Enough for Retirement in America?

The average American needs their retirement savings to last them 14 to 17 years. With this in mind, is $1 million in savings enough for the average retiree?

Ultimately, it depends on where you live, since the average cost of living varies across the country. This graphic, using data compiled by GOBankingRates.com shows how many years $1 million in retirement savings lasts in the top 50 most populated U.S. cities.

Editor’s note: As one user rightly pointed out, this analysis doesn’t take into account interest earned on the $1 million. With that in consideration, the above calculations could be seen as very conservative figures.

How Long $1 Million Would Last in 50 Cities

To compile this data, GOBankingRates calculated the average expenditures of people aged 65 or older in each city, using data from the Bureau of Labor Statistics and cost-of-living indices from Sperling’s Best Places.

That figure was then reduced to account for average Social Security income. Then, GOBankingRates divided the one million by each city’s final figure to calculate how many years $1 million would last in each place.

Perhaps unsurprisingly, San Francisco, California came in as the most expensive city on the list. $1 million in retirement savings lasts approximately eight years in San Francisco, which is about half the time that the typical American needs their retirement funds to last.

CityHow long $1 would last (years)Cost-of-living IndexAnnual expenditures
(after using annual Social Security)
Memphis, TN45.376$22,043
El Paso, TX40.381.4$24,789
Wichita, KS39.782.1$25,145
Tulsa, OK38.883.2$25,705
Indianapolis, IN38.683.5$25,857
Milwaukee, WI37.684.9$26,569
Oklahoma City, OK37.385.4$26,824
Columbus, OH37.285.5$26,875
Kansas City, MO36.786.2$27,231
Detroit, MI35.887.6$27,943
Baltimore, MD35.388.2$28,248
Louisville, KY35.388.4$28,349
San Antonio, TX34.489.7$29,011
Omaha, NE34.389.8$29,062
Albuquerque, NM33.691.1$29,723
Tucson, AZ33.391.6$29,977
Jacksonville, FL32.393.5$30,943
New Orleans, LA30.896.3$32,367
Houston, TX30.896.5$32,469
Charlotte, NC29.698.9$33,690
Forth Worth, TX29.399.8$34,148
Arlington, TX28.8100.6$34,554
Philadelphia, PA28.6101.2$34,860
Nashville, TN28.5101.4$34,961
Dallas, TX28.4101.6$35,063
Raleigh, NC28.2102.3$35,419
Fresno, CA28.1102.6$35,572
Phoenix, AZ27.6103.7$36,131
Mesa, AZ27.4104.2$36,385
Colorado Springs, CO27.3104.5$36,538
Virginia Beach, VA26.9105.6$37,097
Minneapolis, MN26.6106.5$37,555
Chicago, IL26.4106.9$37,759
Atlanta, GA26.3107.5$38,064
Las Vegas, NV24.8111.6$40,149
Sacramento, CA22.9118.2$43,506
Austin, TX22.7119.3$44,065
Miami, FL21.7123.1$45,998
Denver, CO20.4128.7$48,846
Portland, OR20.0130.8$49,914
Washington, D.C.16.4152.1$60,747
San Diego, CA15.4160.1$64,816
Long Beach, CA15.3160.4$64,969
Boston, MA15.1162.4$65,986
Seattle. WA14.0172.3$71,021
Los Angeles, CA13.9173.3$71,530
Oakland, CA13.8174.4$72,089
New York, NY12.7187.2$78,599
San Jose, CA10.8214.5$92,484
San Francisco, CA8.3269.3$120,355

A big factor in San Francisco’s high cost of living is its housing costs. According to Sperlings Best Places, housing in San Francisco is almost 6x more expensive than the national average and 3.6x more expensive than in the overall state of California.

Four of the top five most expensive cities on the list are in California, with New York City being the only outlier. NYC is the third most expensive city on the ranking, with $1 million expected to last a retiree about 12.7 years.

On the other end of the spectrum, $1 million in retirement would last 45.3 years in Memphis, Tennessee. That’s about 37 years longer than it would last in San Francisco. In Memphis, housing costs are about 2.7x lower than the national average, with other expenses like groceries, health, and utilities well below the national average as well.

Retirement, Who?

Regardless of where you live, it’s helpful to start planning for retirement sooner rather than later. But according to a recent survey, only 41% of women and 58% of men are actively saving for retirement.

However, for some, COVID-19 has been the financial wake-up call they needed to start planning for the future. In fact, in the same survey, 70% of respondents claimed the pandemic has “caused them to pay more attention to their long-term finances.”

This is good news, considering that people are living longer than they used to, meaning their funds need to last longer in general (or people need to retire later in life). Although, as the data in this graphic suggests, where you live will greatly influence how much you actually need.

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Markets

The World’s Biggest Real Estate Bubbles in 2021

According to UBS, there are nine real estate markets that are in bubble territory with prices rising to unsustainable levels.

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Ranked: The World’s Biggest Real Estate Bubbles in 2021

Identifying real estate bubbles is a tricky business. After all, even though many of us “know a bubble when we see it”, we don’t have tangible proof of a bubble until it actually bursts.

And by then, it’s too late.

The map above, based on data from the Real Estate Bubble Index by UBS, serves as an early warning system, evaluating 25 global cities and scoring them based on their bubble risk.

Reading the Signs

Bubbles are hard to distinguish in real-time as investors must judge whether a market’s pricing accurately reflects what will happen in the future. Even so, there are some signs to watch out for.

As one example, a decoupling of prices from local incomes and rents is a common red flag. As well, imbalances in the real economy, such as excessive construction activity and lending can signal a bubble in the making.

With this in mind, which global markets are exhibiting the most bubble risk?

The Geography of Real Estate Bubbles

Europe is home to a number of cities that have extreme bubble risk, with Frankfurt topping the list this year. Germany’s financial hub has seen real home prices rise by 10% per year on average since 2016—the highest rate of all cities evaluated.

housing bubble index 2021

Two Canadian cities also find themselves in bubble territory: Toronto and Vancouver. In the former, nearly 30% of purchases in 2021 went to buyers with multiple properties, showing that real estate investment is alive and well. Despite efforts to cool down these hot urban markets, Canadian markets have rebounded and continued their march upward. In fact, over the past three decades, residential home prices in Canada grew at the fastest rates in the G7.

Despite civil unrest and unease over new policies, Hong Kong still has the second highest score in this index. Meanwhile, Dubai is listed as “undervalued” and is the only city in the index with a negative score. Residential prices have trended down for the past six years and are now down nearly 40% from 2014 levels.

Note: The Real Estate Bubble Index does not currently include cities in Mainland China.

Trending Ever Upward

Overheated markets are nothing new, though the COVID-19 pandemic has changed the dynamic of real estate markets.

For years, house price appreciation in city centers was all but guaranteed as construction boomed and people were eager to live an urban lifestyle. Remote work options and office downsizing is changing the value equation for many, and as a result, housing prices in non-urban areas increased faster than in cities for the first time since the 1990s.

Even so, these changing priorities haven’t deflated the real estate market in the world’s global cities. Below are growth rates for 2021 so far, and how that compares to the last five years.

housing bubble price increases 2021

Overall, prices have been trending upward almost everywhere. All but four of the cities above—Milan, Paris, New York, and San Francisco—have had positive growth year-on-year.

Even as real estate bubbles continue to grow, there is an element of uncertainty. Debt-to-income ratios continue to rise, and lending standards, which were relaxed during the pandemic, are tightening once again. Add in the societal shifts occurring right now, and predicting the future of these markets becomes more difficult.

In the short term, we may see what UBS calls “the era of urban outperformance” come to an end.

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