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I wonder if he'll be able to retain his family's wealth. I remember reading that wealth is not retained really well in rich families.

skookumchuck 8y ago
That also runs counter to the popular narrative that wealthy families only grow wealthier.
- jessaustin 8y ago
  The children of billionaires (like this guy) are, on average, wealthier than the children of truck drivers.
  - jumbopapa 8y ago
    This is true, but at the end of the day most wealth created in the US at least is first generational. It's not uncommon for a family fortune to be lost in 2-3 generations.
    - yardie 8y ago
      I can think of not a single family who started out wealthy and lost it all. What's far more common is dilution of wealth. Start out with $100mm, split that 10 ways through inheritance, then split that again, and again. The Rockefellers, Carnegies, Mellons and Westinghouses still exist, just under many different surnames.
      - jumbopapa 8y ago
        Most families never reach that level of wealth. It's obviously going to be different for the top .001% of wealth.
        yardie 8y ago
        If you start out even with $100k inheritance you're pretty far ahead already. That's enough to get an education, buy a home, or start a business. If you can turn that $100k into $1mm you can draw off $35k for the rest of your life without lifting a finger. Having modest savings and being in good health makes you much closer to wealth than if you were further down the economic chain.
      - logfromblammo 8y ago
        Or the Waltons and Pritzkers, who can split the fortune 12 different ways and still have multiple billionaire scions.
Animats 8y ago
It was close. His firm acquired Continental just before the 2008 crash and got clobbered. But it worked out OK in the end.[1] [1] https://www.ft.com/content/6c5fab52-1337-11e5-ad26-00144feabdc0 https://www.ft.com/content/6c5fab52-1337-11e5-ad26-00144feab...
anonytrary 8y ago
Sounds like you're thinking of regression towards the mean. Newborn children probably get a random roll when it comes to financial aptitude as is mostly true with other types of aptitude. Being the son of a skilled investor won't necessarily make you a skilled investor. I think they'd still be above average though since the son of a skilled investor will likely have access to more connections and a better education than the son of a janitor.

skookumchuck 8y ago

That also runs counter to the popular narrative that wealthy families only grow wealthier.

jessaustin 8y ago
The children of billionaires (like this guy) are, on average, wealthier than the children of truck drivers.
- jumbopapa 8y ago
  This is true, but at the end of the day most wealth created in the US at least is first generational. It's not uncommon for a family fortune to be lost in 2-3 generations.
  - yardie 8y ago
    I can think of not a single family who started out wealthy and lost it all. What's far more common is dilution of wealth. Start out with $100mm, split that 10 ways through inheritance, then split that again, and again. The Rockefellers, Carnegies, Mellons and Westinghouses still exist, just under many different surnames.
    - jumbopapa 8y ago
      Most families never reach that level of wealth. It's obviously going to be different for the top .001% of wealth.
      - yardie 8y ago
        If you start out even with $100k inheritance you're pretty far ahead already. That's enough to get an education, buy a home, or start a business. If you can turn that $100k into $1mm you can draw off $35k for the rest of your life without lifting a finger. Having modest savings and being in good health makes you much closer to wealth than if you were further down the economic chain.
    - logfromblammo 8y ago
      Or the Waltons and Pritzkers, who can split the fortune 12 different ways and still have multiple billionaire scions.

Animats 8y ago

It was close. His firm acquired Continental just before the 2008 crash and got clobbered. But it worked out OK in the end.[1] [1] https://www.ft.com/content/6c5fab52-1337-11e5-ad26-00144feabdc0 https://www.ft.com/content/6c5fab52-1337-11e5-ad26-00144feab...

anonytrary 8y ago

Sounds like you're thinking of regression towards the mean. Newborn children probably get a random roll when it comes to financial aptitude as is mostly true with other types of aptitude. Being the son of a skilled investor won't necessarily make you a skilled investor. I think they'd still be above average though since the son of a skilled investor will likely have access to more connections and a better education than the son of a janitor.