A trillionaire is a person with a net worth of at least one trillion in US dollars or an equivalent currency, such as the Euro or British Pound. Currently, no one has claimed trillionaire status, although some are among the richest individuals in the worldIt may only take a few more years before this milestone is reached.
Key learning points
- In the United States, the title "trillionaire" refers to a person with a net worth of at least $1 trillion.
- Net worth refers to a person's total assets – including business interests, investments and personal property – minus their debts.
- No one has yet claimed the title of trillionaire, although the speed at which the world's richest individuals have grown their fortunes suggests this could happen in just a few years.
- As of 2022, 18 countries will have a gross domestic product (GDP) of more than $1 trillion.
Calculation of net worth
Extremely wealthy individuals often derive their wealth from a variety of sources: business interests, investments, real estate, cash and personal assets. For younet value, start adding all these things upactiva. Then you jerk offobligations- everything from personal loans to mortgage loans. A person with at least $1 trillion (or one trillion euros) in net assets would qualify as a trillionaire.
For those in the highest levels of wealth who achieve oneexact net worthis often a complex task. While some assets are relatively stable, the value of business interests in particular can fluctuate wildly from one day to the next.
Actually,Forbes, which publishes the prominent list of the richest people in the world, maintains a “Real-Time Billionaires List” that is updated by the minute, based on stock valuations. Topping the first three slots as of February 19, 2024 are Bernard Arnault & family ($221.7 billion), Elon Musk ($205.2 billion) and Jeff Bezos ($190.7 billion), each separated by $15 to $16 billion. Following them in fourth and fifth place are Mark Zuckerberg and Larry Ellison.
Net Worth Examples: Who's First?
Let's take a look at French fashion mogul Arnault. Most of his and his family's roughly $221.7 billion fortune isn't just in a bank account. It is linked to the value of its holding company, LVMH, which owns well-known brands such as Louis Vuitton, Christian Dior and Hennessy.A rapid rise in the value of LVMH stock compared to Musk and Bezos led it to the top slot in May 2021. And in fact, the three men often switch positions with each other.
As the value of Arnault's brands increased during the COVID-19 pandemic, so did his wealth. In March 2020,Forbesestimated it at $76 billion.In almost four years from February 2024, this figure had increased by almost 200%.
Second on the currentForbeslist is Musk, who currently has a net worth of approximately $205.2 billion.As of February 2024, he owns about 21% of electric car maker Tesla and about 42% of aerospace company SpaceX.Bezos, founder of Amazon, is in second place and is worth $190 billion with a 12.3% stake in the online retailer's stock (AMZNon Nasdaq).
As an example of how volatile these personal wealth estimates can be, Musk reportedly lost $8.9 billion in one day in December 2020 when a J.P. The Morgan analyst concluded that Tesla's stock was significantly overvalued.
The world's first trillionaire?
Even companies like Arnault and Musk – with $221.7 billion and $205 billion respectively – may seem far removed from the trillionaire designation. However, the pace at which some of the richest people in the world have been able to accumulate wealth suggests that it may only take a few years for someone to earn that title.
For example, Arnault was able to increase his net worth roughly sixfold in eight years – from $33.5 billion in 2014 to $221.7 billion in 2024. If he were to repeat that feat, he would be a trillionaire within ten years.
Musk, who built his wealth on groundbreaking companies — Tesla in electric cars and SpaceX for commercially developed rockets — may have as good a chance as anyone. Just five years ago, in 2019, the enigmatic entrepreneur had a net worth estimated at $22.3 billion. As of February 19, 2024, his net worth is $205 billion.If these companies continue on their current valuation trajectory, he could reach trillionaire status in the foreseeable future.
Bezos who owns itWashingtonpostand aerospace company Blue Origin, in addition to its stake in Amazon, has also seen a rapid build-up of wealth. Since 2017, yesForbesestimates of Bezos' net worth rose from nearly $72.8 billion to $190 billion, a gain of more than 2 1/2 times.
How much is $1 trillion?
To put it mildly, a $1 trillion fortune is a huge amount of money – so much so that it's difficult to understand how much wealth it actually is.
Here's some context: According to the Federal Reserve's latest survey of consumer finances, conducted in 2022,to the media net wheree of US households was $192,900.A trillionaire would therefore have a fortune equivalent to DKK 5.2 million times the typical American family.
Here's another way to put that personal tax amount into perspective: It took the U.S. Senate months of difficult negotiations to agree on aA $1.2 trillion infrastructure billwhich was adopted in November 2021. That was largely because many Republicans rejected so much additional federal spending (although the bill technically contains only $550 billion in new spending).
A net worth of $1 trillion represents a greater amount than...gross domestic product (GDP)countries such as Switzerland, Sweden and Austria. In fact, only 18 countries have a GDP exceeding $1 trillion.
In short
No one has claimed trillionaire status at this point. But a net worth of at least a trillion dollars or a coin of comparable value is not unattainable, but it will take a few years. Only 18 countries have a GDP that exceeds this amount.
