The Forbes 400
America's richest 400 just get richer
The list of the wealthiest Americans hasn't changed much over the past year, but their combined net worth now tops $1 trillion, and you'd need $750 million just to come in at No. 400.
By Forbes
The economy's recovery may be a little shaky, but you wouldn't know it from looking at this year's Forbes 400. The combined net worth of the nation's wealthiest climbed to $1 trillion, up $45 billion in 12 months. With a $750 million admission price, nine-digit fortunes are an endangered species here: 78% of the people on this year's list are billionaires.
But while the creation of wealth marches on, the preservation of it is a chancy affair. Walt Disney Co. (DIS, news, msgs) boss Michael Eisner is gone from the list, capping a bad year of shareholder revolts and lackluster releases. Also gone: longtime Forbes 400 member and buyout king Theodore Forstmann, who took large stakes in XO Communications (XOXO, news, msgs) and McLeodUSA (MCLD, news, msgs) before they went bust. Those left behind made room for 45 new names, 10 of them members of Chicago's Pritzker clan, whose intergenerational squabble resulted in the carving up of the family's $17 billion hotel and manufacturing fortune.
The Forbes 400: America’s richest individuals
But not all the new names are family money: Google (GOOG, news, msgs) founders Sergey Brin and Larry Page prove a good idea can still make a bundle; bond guru William Gross' steady hand on volatile markets created his $1 billion fortune; and Kenneth Hendricks shows a guy can still make a buck in the unsexy trade of building supplies.
High oil and gas prices also helped: T. Boone Pickens, a perennial suspect for two decades, finally makes an appearance on the list, but his $750 million pile is dwarfed by the $4.2 billion net worth of Houston pipeline maven Daniel Duncan.
Meet the richest people in America:
1. William Henry Gates III
Net worth: $48 billion (up)
Source: Software, Microsoft (MSFT, news, msgs)
Personal: Self-made, 48, married, three children
Hometown: Medina, Wash.
Undergraduate: Harvard University, dropout
Microsoft pressing beyond PCs into television set-top boxes, games, cell phones. "Software is where the action is," Gates proclaimed to company researchers in August. Less action, though, in Microsoft stock: flat over the past year despite a 14% increase in revenues and $75 billion gift to shareholders via dividends and stock buybacks. Competition from rival open source operating system, Linux, stalling Microsoft's growth in the server market, but desktop dominance intact: Windows installed in 94% of PCs being sold. Next version, Longhorn, should be ready in 2006. Microsoft, meanwhile, is pursuing online music, photos and search software. Gates methodically diversifying wealth: sells 20 million shares each quarter, reinvests through Cascade Investment in nontech companies, including big stakes in Cox Communications, Canadian National Railway, Republic Services. World's biggest philanthropist also devoting $27 billion to good deeds. Bill & Melinda Gates Foundation fights infectious diseases (hepatitis B, AIDS), funds vaccine development, helps high schools.
2. Warren Edward Buffett
Net worth: $41 billion (up)
Source: Investments, Berkshire Hathaway (BRK.B, news, msgs)
Personal: Self-made, 74, widowed, three children
Hometown: Omaha, Neb.
Undergraduate: University of Nebraska Lincoln, Bachelor of Arts/Science
Graduate: Columbia University, Master of Science
The Sage more revered than ever after Berkshire Hathaway profits doubled in 2003 thanks to good year for insurance units Geico and General Re. Stock up 13% in the past year; briefly challenged Gates as world's richest man when shares flirted with $100,000 mark. Newspaper delivery boy filed first 1040 at age 13; claimed $35 deduction for bicycle. Studied under Benjamin Graham at Columbia. Applied value-investing principles to build Berkshire Hathaway to $133 billion (market cap) holding company: insurance, energy, carpets, jewelry, furniture, paint (Benjamin Moore), apparel (Fruit of the Loom). Also big stakes in American Express, Coca-Cola, Gillette. Admits Berkshire's $30 billion cash hoard is underutilized: "It's a painful condition to be in, but not as painful as doing something stupid. [Vice Chairman] Charlie [Munger] and I detest taking even small risks." Recent bets include Pier One Imports, Comcast and food distributor McLane. Bought mobile-home maker Clayton Homes after reading autobiography by company founder. "If we fail, we will have no excuses." Since taking control of Berkshire 39 years ago has delivered compound annual return of 24%. Outspoken opponent of Bush tax cuts, recently courted as adviser to pols Arnold Schwarzenegger and John Kerry. Critic of lax corporate governance, became target of failed campaign to vote him off Coca-Cola board. Fanatical supporters still far outnumber critics: Berkshire's folksy annual meeting crowds routinely top 15,000. Next year's confab will miss the arias and punch lines served up by wife, Susan, who died in July.
3. Paul Gardner Allen
Net worth: $20 billion (down)
Source: Software, Microsoft, investments
Personal: Self-made, 51, single
Hometown: Seattle
Undergraduate: Washington State University, dropout
Microsoft cofounder still a believer in "wired world," though these days jettisoning investments like TechTV in favor of biotech. Stock in cable company Charter Communications fizzled, with an assist from last year's indictment of four executives on charges of inflating company's results. Company has agreed to a $144 million settlement. Separately considering giving out months of free service to settle lawsuits brought by disgruntled customers. Similar misfortune with investment in troubled telecom provider RCN; recently sold stake at big loss. Still managing to have a good time elsewhere. Owns pro football's Seattle Seahawks, basketball's Portland Trail Blazers. Financial backer of SpaceShipOne, first to launch private flight into suborbital space. Added Science Fiction Museum to his Experience Music Project in Seattle; includes captain's chair from the original Star Trek. Other captain's chair sits high atop the Octopus, 413-foot yacht armed with two helicopters and a 60-foot submarine. His Paul G. Allen Family Foundation has donated heavily to education, art and science causes. Joined buddy Bill Gates in 1975, left the company in 1983 to fight Hodgkin's disease. Has been slowly selling off Microsoft stake ever since.
4. Alice L. Walton
Net worth: $18 billion (down)
Source: Retailing, Wal-Mart (WMT, news, msgs)
Personal: Inherited, 55, divorced
Hometown: Fort Worth, Texas
Undergraduate: Trinity University of San Antonio, Bachelor of Arts/Science
Only daughter of Sam Walton (d. 1992), legendary merchant who opened first discount store in Rogers, Ark., in 1962. Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest retailer, with more than 5,000 stores. Alice raises horses on Texas ranch, not active in company. Retail giant now selling softer side after barrage of criticism over poor worker benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
4. Helen R. Walton
Net worth: $18 billion (down)
Source: Retailing, Wal-Mart (WMT, news, msgs)
Personal: Inherited, 85, widowed, four children
Hometown: Bentonville, Ark.
Undergraduate: University of Oklahoma, Bachelor of Arts/Science
Widow of Sam Walton (d. 1992), legendary merchant who opened first discount store in Rogers, Ark., in 1962. Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest retailer, with more than 5,000 stores. Helen not active in company. Retail giant now selling softer side after barrage of criticism over poor worker benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
4. Jim C. Walton
Net worth: $18 billion (down)
Source: Retailing, Wal-Mart (WMT, news, msgs)
Personal: Inherited, 56, married, four children
Hometown: Bentonville, Ark.
Youngest son of Sam Walton (d. 1992), legendary merchant who opened first discount store in Rogers, Ark., in 1962. Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest retailer, with more than 5,000 stores. Though not active in company, Jim is president of Arvest, Arkansas' biggest bank. Retail giant now selling softer side after barrage of criticism over poor worker benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
4. John T. Walton
Net worth: $18 billion (down)
Source: Retailing, Wal-Mart (WMT, news, msgs)
Personal: Inherited, 58, married, one child
Hometown: Bentonville, Ark.
Son of Sam Walton (d. 1992), legendary merchant who opened first discount store in Rogers, Ark., in 1962. Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest retailer, with more than 5,000 stores. Serves as a director. Retail giant now selling softer side after barrage of criticism over poor worker benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
4. S. Robson Walton
Net worth: $18 billion (down)
Source: Retailing, Wal-Mart (WMT, news, msgs)
Personal: Inherited, 60, divorced, three children
Hometown: Bentonville, Ark.
Undergraduate: University of Arkansas, Bachelor of Arts/Science
Graduate: Columbia University, Doctor of Jurisprudence
Eldest son of Sam Walton (d. 1992), legendary merchant who opened first discount store in Rogers, Ark., in 1962. Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest retailer, with more than 5,000 stores. Serves as Wal-Mart chairman. Retail giant now selling softer side after barrage of criticism over poor worker benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
9. Michael Dell
Net worth: $14.2 billion (up)
Source: Technology, Dell (DELL, news, msgs)
Personal: Self-made, 39, married, four children
Hometown: Austin, Texas
Undergraduate: University of Texas Austin, dropout
Founder of world's biggest PC maker stepped down as chief executive in July, but at a mere 39, he's not headed for the rocking chair. Remains chairman, works closely with successor Kevin Rollins to push company toward goal of $60 billion in sales by 2007. Getting close: second-quarter revenues were $11.7 billion, 20% higher than last year. As a 19-year-old college kid started company from his University of Texas dorm room. Grew fast with low cost, low R&D;, direct-sales model. Now beginning to compete in media software, printers, other gizmos. Diversifying wealth by selling stock, reinvesting through MSD Capital in other ventures, including 377-room luxury Four Seasons Resort Maui at Wailea, Hawaii. Other investments: stakes in International House of Pancakes, Dollar Thrifty Automotive Group, Tyler Technologies, Indiana restaurant chain Steak n' Shake.
10. Lawrence Joseph Ellison
Net worth: $13.7 billion (down)
Source: Software, Oracle (ORCL, news, msgs)
Personal: Self-made, 60, married, two children
Hometown: Silicon Valley, Calif.
Undergraduate: University of Illinois, dropout
Latest tech slump shaved $4.3 billion off his worth, but Larry still cracks wise, telling analysts in July: "This is the tech recovery. Enjoy it." Brash software executive enjoying long-shot victory when a judge ruled in September that Oracle could proceed with hostile $7.7 billion bid for PeopleSoft. But deal far from done. PeopleSoft -- founded by fellow Forbes 400 member David Duffield -- could still trigger poison pill, not to mention European regulatory hurdles. Chicago native cofounded database software firm in 1977, took public in 1986, one day before Microsoft; nipping at rival's heels ever since. Touts Darwinian view of software industry, decreeing that all but the largest players are doomed. Just as competitive on the high seas: finished behind in the most recent America's Cup; his BMW Oracle Racing team looks to be in fighting trim leading up to the 2007 race. Visionary very attached to his own vision of things: gave exclusive access to biographer in exchange for being allowed to pepper the book with footnotes giving his own version of events.
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