Connect with us

Money

Ranked: The World’s Richest Families in 2020

Published

on

The World's Richest Families in 2020

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.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Personal Finance

Visualizing How the Pandemic is Impacting American Wallets

57% of U.S. consumers’ incomes have taken a hit during the pandemic. How do such financial anxieties affect the ability to pay bills on time?

Published

on

A Snapshot of U.S. Personal Finances During the Pandemic

If you’ve felt that you’ve needed to penny-pinch more during the pandemic, you’re not alone.

In the past seven months, 42% of U.S. consumers have missed paying one or more bills, while over a third (39%) believe they will need to skip payments in the future.

This visualization breaks down the state of U.S. consumers’ personal finances during the COVID-19 era, and projects into future concerns around savings.

Pandemic Personal Finances: Key Takeaways

Based on data from the doxoINSIGHTS Bills Pay Impact Report across 1,568 sampled households, three themes emerge:

  • 57% of consumers’ incomes have taken a hit in the past seven months
  • 70% have delayed discretionary spending on big purchases
  • 75% continue to be very worried about their future financial health

How do these anxieties translate into day-to-day consequences?

Pandemic Postpones Bill Payments

Unsurprisingly, worrying about personal finances also means that more Americans are deferring their bill payments during the pandemic. However, these vary depending on the type of bill, total amount, and immediate urgency.

Over a quarter (27%) of U.S. consumers report having missed a bill on their auto loans, followed by 26% for utilities and 25% on cable or internet costs.

The average cost of the above three bill types is $258—but that’s still a fraction of the two most expensive bills, mortgage or rent, which come in at $1,268 and $1,023 respectively.

Bill Type$ Value% Missed
Auto loans$37427%
Utilities$29026%
Cable/ Internet$11025%
Rent$1,02320%
Mobile phone$8819%
Mortgage$1,26817%
Alarm/ Security$7617%
Auto insurance$18115%
Dental insurance$2514%
Life insurance$7613%
Health insurance$9410%

Prioritizing Payments

While 20% of Americans say they’ve missed a rent payment over the past few months, what’s even more alarming is that 28% of U.S. consumers believe they will most likely skip paying rent in the future.

Bill Type% Likely to Skip in Future
Cable/  Internet29%
Utilities28%
Rent28%
Auto loans26%
Mobile phone26%
Mortgage21%
Auto insurance21%
Alarm/ Security19%
Dental insurance16%
Life insurance17%
Health insurance15%

Another clear trend is that many Americans are prioritizing insurance payments, particularly health insurance. This is good news during a global pandemic—only 10% have missed paying this bill type, although 15% expect to skip it in the coming months.

According to the report, some U.S. consumers seem to prioritize the bill types which come with strings attached, from late-payment penalties to accrued interest.

While missing a single payment might seem harmless, a pattern of missed payments over time have the potential to negatively impact your credit score.

Enough Savings To Stay Afloat?

Finally, Americans are wary about how much they have stashed away in the bank to weather the tumultuous months ahead.

While unemployment figures are recovering from historic troughs, the fear of losing one’s job remains prevalent. How many months’ worth of savings do U.S. consumers think they have if this were to happen?

# Months % Responses
7+ months 💰💰💰💰💰💰💰23%
4-6 months 💰💰💰💰💰💰15%
1-3 months 💰💰💰27%
<1 month 💰35%

No one knows how long the COVID-19 chaos will last. In order to adapt to this economic uncertainty, consumer priorities are shifting along with their tightened budgets.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Gold

The World’s Gold and Silver Coin Production vs. Money Creation

In 2019, the value of global money creation was over 500 times higher than the world’s gold and silver coin production combined.

Published

on

World's Gold and Silver Coin Production

Global Gold & Silver Coin Production vs. Money Creation

Note: Data has been updated to correct a previous calculation error pertaining to Japanese Yen money supply.

Both precious metals and cash serve as safe haven assets, intended to limit losses during market turmoil. However, while modern currencies can be printed by central governments, precious metals derive value from their scarcity.

In this infographic from Texas Precious Metals, we compare the value of the world’s gold and silver coin production to global money creation.

Total Production Per Person, 2019

We calculated the value of global currency issuance in 2019 as well as precious metal coins minted, and divided by the global population to get total production per person.

Throughout, global money supply is a proxy based on the 5 largest reserve currencies: the U.S. dollar, Euro, Japanese Yen, Sterling Pound, and Chinese Renminbi.

2019 ProductionOuncesDollar ValueDollar Value Per Person
Global Gold Coins7,204,982$10.9B$1.42
Global Silver Coins97,900,000$1.8B$0.23
Global Money Supply$4.3T$556.33

All numbers are in USD according to exchange rates as of December 31 2019. Gold and silver values are based on the 2019 year close price of $1,510.60 and $17.90 respectively.

The value of new global money supply was 390 times higher than the value of gold coins minted, and 2,400 times higher than silver coins minted.

Put another way, for each ounce of minted gold coin, the global money supply increased by more than $593,000.

Change in Annual Production, 2019 vs. 2010

Compared to the start of the decade, here’s how annual production levels have changed:

 20102019% change
Global Silver Coins (oz)95,900,00097,900,0002.1%
Global Gold Coins (oz)6,298,3317,204,98214.4%
Global Money Supply (USD)$2,936,296,692,440$4,268,993,639,92645.4%

Annual increases to global money supply have increased by half, far outpacing the change in the world’s gold and silver coin production.

Even more recently, how has production changed during the COVID-19 pandemic?

The COVID-19 Effect

In response to the global pandemic, central banks have enacted numerous measures to help support economies—including issuing new currency.

The global money supply increased by more than $6.8 trillion in the first half of 2020. In fact, the value of printed currency was 930 times higher than the value of minted gold coins over the same timeframe.

Investors may want to consider which asset is more vulnerable to inflation as they look to protect their portfolios.

Want to learn more? See the U.S. version of this graphic.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Subscribe

Join the 200,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular