i don't understand anything about money but this is like...she doesn't actually HAVE $1 billion, it's just what her company is worth? idk does that distinction even matter to rich people? is that how all billionaires are billionaires?
I think something along the lines of financial forecasting based the total she might be able to rake in based on: her public image + general likeability + social influence to be able to generate that much money from those willing to invest on her & those willing to spend/invest money on whatever she has a hand in + her perceived ability to maintain stable goodwill to maintain that trustworthy impression (whatever that means will vary since I don't think people expect her to work on the production lines to know what is going on, but they do expect her to manage some kind of accountability for businesses attached to her name).
I don't think it's necessarily an estimate of how much money she might have in her savings account, unlike Rupert Murdoch for instance (but even then it's debatable since a lot his money might be tied up in real estate and stocks, so those numbers mean nothing unless he can actually find buyers willing to pay him those supposed market value prices the second he wants/needs to sell--which is what people mean by
Yeah, this is a pretty common misconception, I think! These folks *can* use their paper wealth as leverage for getting loans and whatnot, but the value of the company itself could evaporate if her company struggles or fails.
However, I am sure if she's been this business saavy so far, she has her actual money in a variety of holdings and investment vehicles, and is worth a much lower (but still insanely high amount) in the millions.
It’s the value of their investments and it’s true for all billionaires. After a certain amount of money you need to invest it, you shouldn’t keep money sitting in the bank in cash.
correct. they're talking about the total value of all their assets including businesses, real estate, stocks, other assets like art or car collections, etc. and not like a billion dollars in cash in a garage
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I don't think it's necessarily an estimate of how much money she might have in her savings account, unlike Rupert Murdoch for instance (but even then it's debatable since a lot his money might be tied up in real estate and stocks, so those numbers mean nothing unless he can actually find buyers willing to pay him those supposed market value prices the second he wants/needs to sell--which is what people mean by
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However, I am sure if she's been this business saavy so far, she has her actual money in a variety of holdings and investment vehicles, and is worth a much lower (but still insanely high amount) in the millions.
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correct. they're talking about the total value of all their assets including businesses, real estate, stocks, other assets like art or car collections, etc. and not like a billion dollars in cash in a garage
https://www.visualcapitalist.com/chart-assets-make-wealth/
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