Jeff Bezos’ net worth just hit an all-time high. Here’s how the richest person in the world makes and spends his $171 billion fortune.
REUTERS/Katherine Taylor
Jeff Bezos’ fortune has hit an all-time high — $171.6 billion, according to Bloomberg estimates.
The billionaire’s net worth surge comes alongside a jump in Amazon’s share price despite the coronavirus pandemic that has upended the American economy and Bezos’ agreement to surrender 25% of his Amazon stake to his ex-wife MacKenzie Bezos in a divorce settlement last year.
While Bezos has added $56.7 billion to his net worth in 2020 alone, per Bloomberg estimates, the coronavirus crisis has been an economic disaster for the rest of America, as an unprecedented 49 million Americans filed for unemployment benefits in recent months.
Bezos isn’t the only billionaire getting richer during the pandemic. Tesla’s Elon Musk and Zoom’s Eric Yuan both saw their net worths grow by more than $2 billion between March and June, Business Insider previously reported.
From real estate to space travel, here’s how Bezos spends his money.
Jeff Bezos founded Amazon, the source of much of his wealth, on July 5, 1994.
Richard Drew/AP
Source: Bloomberg
Bezos’ parents were reportedly shocked that he would give up a cushy Wall Street job in order to sell books over the internet.
Jon Erlichman
Source: “The Everything Store” via Business Insider
Bezos’ parents eventually came around and invested about a quarter of a million dollars in the fledgling company, a stake that would be worth as much as $30 billion today.
Reuters
Source: Bloomberg
Bezos also received a lot of support from his then-wife MacKenzie, who negotiated Amazon’s first freight contract and did the company’s accounting. Per the terms of their 2019 divorce settlement, MacKenzie holds a 4% stake in the company, which forms the majority of her $56.9 billion fortune.
Dia Dipasupil / Staff
Source: Bloomberg
Amazon made its initial public offering on May 15, 1997. Since that day, the split-adjusted stock price has increased nearly 90,000%.
Business Insider/Andy Kiersz, data from Yahoo Finance
Source: Yahoo Finance
Amazon’s rise left several early internet competitors in the dust. In the company’s first post-IPO shareholder letter, Bezos mentioned strategic partnerships with several peers like America Online, Prodigy, and Yahoo that have either gone out of business entirely or been purchased by competitors in the years since.
Justin Sullivan/Getty Images
Source: Business Insider
Amazon has steadily grown over the last two decades, and now sells a wide variety of consumer products, electronics, and digital media.
Source: Amazon
Another big growth area was Amazon Web Services. As of February 2018, the company’s cloud services was a $17.5 billion business.
Business Insider
Source: Business Insider
Amazon has also grown through various acquisitions over time. The company’s 2009 purchase of online shoe retailer Zappos for $1.2 billion stood as Amazon’s biggest acquisition for about eight years.
Source: Visual Capitalist
That record was blown out of the water with Amazon’s 2017 purchase of Whole Foods for $13.7 billion.
Business Insider/Hayley Peterson
Source: Visual Capitalist
The Whole Foods acquisition has dramatically boosted Amazon’s push into the grocery world. A 2019 study from OneClickRetail estimates that Amazon had an 18% share of the US online grocery market.
Business Insider/Hayley Peterson
Source: Business Insider
Amazon’s rise is the primary source of Bezos’ fortune. Bezos remains Amazon’s largest stockholder, owning 11% of the e-commerce giant. According to MacKenzie Bezos’ statement on the couple’s divorce, Bezos retained 75% of the couple’s Amazon stock holdings and the voting power of MacKenzie’s shares.
REUTERS/Abhishek N. Chinnappa
Bezos has made several investments in other companies, both on a personal level and through his venture capital firm Bezos Expeditions.
REUTERS/Andrew Kelly
Source: Visual Capitalist
Bezos personally invested in Google in 1998, and his $1 million early investment would likely have made him a billionaire even without his extensive Amazon wealth.
Edgar Su/Reuters
Source: “The Everything Store” via Business Insider
Bezos Expeditions has invested in several startups, including blood testing biotech firm Grail, popular software developer website Stack Overflow, and Business Insider.
Daniel Goodman
Business Insider was acquired by Axel Springer in 2015. Jeff Bezos is no longer invested.
Source: Visual Capitalist
One of Bezos’ more notable purchases was his acquisition of The Washington Post for $250
million in 2013.
REUTERS/Jonathan Ernst
Source: Business Insider
Since Bezos’ acquisition, the Post has greatly expanded its digital offerings, and readership has exploded.
REUTERS/Stelios Varias
Source: Business Insider
Bezos’ wealth is so massive that, according to Business Insider’s 2018 calculations when he had a mere $130 billion fortune, spending $88,000 to him was similar to an average American spending $1.
REUTERS/Rex Curry
Source: Business Insider
Bezos is one of the country’s biggest landowners, and he and his family own at least five homes across the US.
Drew Angerer/Getty Images
Source: Business Insider
One estate, with two homes on 5.3 acres of land, is located in Medina, Washington, not far from Amazon’s Seattle headquarters.
Stephen Brashear/Getty
Source: Business Insider
Business Insider’s Harrison Jacobs visited Medina in 2017 to get a sense of what the haven for Seattle’s mega-wealthy was like.
Harrison Jacobs/Business Insider
Source: Business Insider
Jacobs got a picture of the outside of Bezos’ estate, but tall hedges and a gate blocked any view inside.
Harrison Jacobs/Business Insider
Source: Business Insider
Bezos also owns a Spanish-style mansion in Beverly Hills, California. He bought the property in 2007 for a reported $24.25 million. He bought another, smaller house right next door a decade later.
Source: Business Insider
He also owns a ranch in Van Horn, Texas, which serves as a base for his Blue Origin space exploration company.
Google Earth
Source: Business Insider
Bezos purchased a townhouse in Washington, DC in 2016.
Google Earth
Source: Business Insider
Bezos owns several condos in the historic Century building at 25 Central Park West in Manhattan.
David Shankbone/Wikipedia Commons
Source: Business Insider
In June 2019, the Amazon CEO reportedly dropped about $80 million on another three adjacent apartments in a different building at 212 Fifth Avenue in Manhattan. The spread consists of a three-story penthouse and the two units directly below it.
Source: Business Insider
Most recently, Bezos reportedly dropped $165 million on another yet another Beverly Hills mansion — the Warner Estate. The Wall Street Journal reported the sale in February.
Google Maps
Source: The Wall Street Journal
Bezos has traditionally been somewhat frugal with his ground transportation. As recently as 2013, he was still driving a Honda Accord, according to the book “The Everything Store.”
Honda
Source: “The Everything Store” via Business Insider
However, Bezos also owns a $65 million Gulfstream G650ER private jet.
REUTERS/Aly Song
Source: Business Insider
Bezos sometimes has a taste for exotic cuisine. The founder of e-commerce startup Woot recounted a breakfast with Bezos shortly after Amazon acquired the company at which the billionaire ordered octopus.
Andrew Toth / Stringer / Getty Images
Source: Business Insider
The founder recounted Bezos explaining similarities between Amazon’s acquisition of Woot and his offbeat breakfast order. “You’re the octopus that I’m having for breakfast,” Bezos said. “When I look at the menu, you’re the thing I don’t understand, the thing I’ve never had. I must have the breakfast octopus.”
Source: Business Insider
Bezos has not engaged in public philanthropy to the same extent as many of his hyper-billionaire peers like Warren Buffett and Bill Gates, who have both pledged to donate the majority of their fortunes to charity.
Nati Harnik/AP
Source: Business Insider
Bezos’ ex-wife MacKenzie did sign Gates’ Giving Pledge in May 2019, pledging to donate more than half of her fortune during her lifetime.
Kevork Djansezian/Getty Images
Source: Business Insider
Bezos has, however, supported Mary’s Place, a Seattle organization that provides shelter and employment training to those who are homeless, and TheDream.US, which supports people who were brought to the US as undocumented immigrants when they were children.
By Ed Murray, via Wikimedia Commons
Source: Business Insider
According to CNBC, Bezos has also donated significant sums to Seattle’s Fred Hutchinson Cancer Research Center, the University of Washington Foundation, and Princeton University.
Source: CNBC
Bezos also supports some more unusual ventures, like the Long Now Foundation, which seeks to build a giant mechanical “10,000 year clock” underground in West Texas.
Source: Business Insider
The clock is intended to be a “symbol for long-term thinking,” according to a tweet from Bezos.
Spencer Platt/Getty Images
Source: Business Insider
Bezos has been fascinated and inspired by NASA and space travel since watching the Apollo moon landings in his childhood. In 2013, Bezos funded and led an expedition to recover one of the rocket engines from the Apollo 12 mission from the floor of the Atlantic Ocean.
NASA
Source: The Seattle Times
Bezos’ most ambitious venture may be Blue Origin, his space exploration company.
Win McNamee / Getty Images
Blue Origin has had several successful test flights of its reusable New Shepard rocket, and is currently developing the larger, mo
stly reusable New Glenn rocket system, intended to compete with Elon Musk’s SpaceX.
Blue Origin
Source: Business Insider
In the long term, Bezos intends for Blue Origin to support large-scale human spaceflight, with the goal of colonizing the solar system.
Isaiah J. Downing/Reuters
Source: Business Insider
In 2018, Bezos told Matthias Döpfner, CEO of Business Insider’s parent company Axel Springer, that he considers Blue Origin “the most important work [he’s] doing.”
Source: Business Insider
Indeed, Bezos told Döpfner that he plans to spend his entire fortune on space exploration, saying, “I am going to use my financial lottery winnings from Amazon to fund that.”
HO/Mike Brown/Space Florida
Source: Business Insider
And in February, Bezos announced a pledge to spend $10 billion to fight climate change.
“I’m committing $10 billion to start and will begin issuing grants this summer,” Bezos wrote on Instagram. “Earth is the one thing we all have in common — let’s protect it, together.”
Source: Business Insider
Bezos also spends plenty of cash in his personal life. He threw a star-studded birthday bash for girlfriend Lauren Sanchez in December.
Reuters/Andrew Couldridge
Source: Business Insider
Bezos nearly lost the title of “the world’s richest man” to Bill Gates in October 2019, after a disappointing earnings report sent both Amazon’s share price and the CEO’s net worth on a downward spiral in after-hours trading. Bezos’ personal net worth fell $8.2 billion at that point, according to Bloomberg.
REUTERS/Katherine Taylor
Source: Bloomberg
Of course, he’s since bounced back in a major way. Even as the coronavirus pandemic upended the American economy in March, Bezos has continued to get wealthier — and now, he’s richer than he’s ever been.
MARK RALSTON/AFP via Getty Images
Bezos’ net worth hit a new peak on July 2 — $171.6 billion. That’s even richer than he was before his divorce settlement.
Amazon’s share price has surged throughout the pandemic as Americans practice social distancing to slow the virus’ spread and increasingly turn to Amazon’s delivery services for daily necessities.
Bezos doesn’t plan to keep all of the $56.7 billion he added to his net worth so far in 2020, however. He announced in April that he pledged to donate $100 million to food banks facing shortages due to the economic crisis spurred by the pandemic.
“My own time now is wholly focused on COVID-19 and how Amazon can best play its role,” Bezos wrote in March. “I want you to know that Amazon will continue to do its part, and we won’t stop looking for new opportunities to help.”
Source: Business Insider
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