Quote:
Originally Posted by jjshabado
Edit: What's the argument he's only earned bank interest? I've seen a bunch of claims that he hasn't beaten the stock market (a much tougher thing to do than beating bank interest) and those have all been deeply flawed.
The most basic form of the argument is pretty straightforward:
1. Forbes first estimated Trump's net worth, in 1982, at 200M.
2. 200M invested in the SP500 in 1982 would be worth 7-9B today
3. Trump's net worth in 2015 was around 4.5B
But the reality is much more complicated. His net worth has not been a straight line, and the 1982 date could be considered cherry-picking. Most significantly, his estimated net worth in 1990 was -800M. That's
negative 800M, due to personally guaranteeing a bunch of casino debt that went bad.
A couple of interesting articles detailing his financial history and his dark period of the early 90s:
What's He Really Worth? [from 2005]
Trump and His Debts: A Narrow Escape
It could be argued that getting out of that hole and rebuilding his empire qualifies Trump as one of the greatest business geniuses in history. You could also argue that getting in that hole in the first place demonstrates recklessness, greed, and gross incompetence. The truth is probably somewhere in between. And of course it all begs the question of whether those kinds of deal-making skills that built the Trump brand would serve him well as a politician.
Also interesting to note: Forbes calculates a "Self-Made Score" for everybody on the 400 list. On a scale of Alice Walton (1) to Oprah Winfrey (10), Trump gets a 5.