The allure of Republican presidential candidate Donald Trump to many voters is that he’s run a successful business. There’s no denying that he is in fact incredibly wealthy, just not as much as he claims.
Trump’s campaign manager claims his net worth is $10 billion. Forbes has pegged him at $4.5 billion. Trump has an interesting and nuanced relationship with financial pundits in the media.
Ego Inflated Net Worth
In October of 2015, Trump sat down with Forbes for two hours to discuss the thing he cares about most; what people think his net worth is. At one point, Trump says he could sell his stake in one of his building for around, oh say $2 billion or maybe even $3 billion. His stake in that building is valued at a mere $530 million.
A lot of his fortune hinges on Trump’s brand name, as the name itself propels the wealth.
Forbes and other associated net worth appraisers use careful analysis to determine individuals net worth. After looking over his Personal Financial Disclosure (PFD) for the Federal Election Commission (FEC), multiple sources came up with similar estimates. Fortune puts him at around $3.9 billion and Bloomberg Billionaires Index estimates Trump to be worth around $2.9 billion.
Inept Businessman
Neil Barsky, former Wall Street Journal reporter, spent many years of his life chronicling and interviewing Trump alongside his many failed business ventures. He came to the realization of Trump being a sub-par businessman before many of his cohorts.
He’s not alone either, as Warren Buffett, an established billionaire, has chided Trump for not releasing his tax returns.
During the 1990s Trump’s real estate empire was coming down in shambles. His Atlantic City casinos were crashing and 1990 Forbes placed his net worth from $1.7 billion to $500 million. In a 1990 article, referencing Trump’s Taj Mahal Atlantic City, Barsky quoted an analyst that said:
“Once the cold winds blow from October to February, it won’t make it.”
Trump contacted the employer of the analyst who then promptly fired him. His words rang true as four of his casinos and hotels went bankrupt as the result of poor business decisions. In typical Trump Fashion, he applauds his use of bankruptcy laws as if was some kind of strategic maneuver.
“I do play with the bankruptcy laws—they’re very good for me”.
Admitting Trump isn’t the stellar businessman he claims to be, is a hard sell to average voters. He’s still a billionaire, just not the one you want running your country.
For him it’s not about creating actual value, but an image. The now defunct “Trump University” failed to disclose it wasn’t a real school and is pending two class-action lawsuits.
Perpetual Litigation
The king of lawsuits and bankruptcy has distanced himself from his failed businesses. He’s disowned Trump Entertainment Resorts and sued to demand removal from his name of the company’s two casinos that had fallen into despair.
He can add that to the 3,500 different suits he’s been involved in.
Trump’s main focus has been using his name for branding and licensing. A majority of financial experts value the Trump brand at anywhere around $125 million, Trump’s valuation: $3 billion. Many developers have used Trump to to market properties to the public. What does this mean then? It means that Trump doesn’t own a lot of the buildings with his name plastered on it.
Trump has had a mediocre run with his inheritance and shoddy business practices. By no means does poorly running his brand of business qualify him for office. The myth of the ultimate self-made man will crumble, just as his fantasy wall will collapse too.
Hopefully, the bad populist dream will end soon and The Donald can go back to running his inflated empire.
Check out this video that attempts to prove just how not-rich The Donald really is:
https://www.youtube.com/watch?v=BqsTqzxUbc8
Featured Image: Screenshot Via YouTube Video.
