In this article, we will be taking a look at the 25 richest families in the world and their stocks. To skip our detailed analysis, you can go directly to see the 5 richest families in the world and their stocks.
Wealth accumulation and wealth disparity are terms that may be gaining more popularity nowadays, but have existed for millennia. After all, previously, monarchy used to rule massive kingdoms where the royal families would have incredible fortunes while the general population toiled. While monarchy has been repealed in favor of democracy across most countries in the world, there are still rich nations which are ruled by families, with the richest royal family in the world being Saudi Arabia, with a net worth purportedly in excess of $1.4 trillion. For comparison's sake, Elon Musk, the world's richest person, has a net worth of just $250 billion. The Saudi royal family has ruled for over 250 years and while most of this time period was spent with relatively little wealth, the discovery of oil in early 20th century elevated the country, and by proxy, the royal family's wealth to all-time highs. Even in countries where the monarchy still exists but is little more than a ceremonial figurehead, including the UK, fortunes tend to be vast, including the most popular royal family in the world in the Windsors, with the British monarchy said to have a net worth of $88 billion.
According to Inequality.org, the richest 1% in the world own 46% of global assets, signifying higher income inequality than at any point in history. While a large reason for this is generational wealth, corruption and a lack of opportunities, especially in developing nations, income inequality is high in developed nations too, particularly the U.S., where major lobbying firms ensure that laws favor corporations rather than the people, also creating an excellent environment for businesses to establish themselves and achieve high levels of success, which is why a lot of the richest families in the world are from the U.S.
One argument against income inequality is the way vaccines were administered across the pandemic, with the number of vaccines per 100 people 13 times higher in developed countries as opposed to developing countries in January 2022, leading to a long time taken to ensure sufficient inoculation in the latter. However, it can also be argued that if corporations didn't have the necessary funds to conduct immediate research into a virus that resulted in the world being locked down, a solution could have possibly taken years, if not decades, irreparably harming not just developed countries but the same developing countries that are victims of income inequality.
In fact, during the pandemic, the richest people in the world, including some of the richest families across the globe, gained $3.9 trillion from March to December 2020, even as worker earnings decreased by $3.7 trillion in the same time period, primarily because of vast headcount reductions across major corporations. The fact that companies seem to have returned to profitability, with many recording record profits due to various reasons, indicates that perhaps the right steps were taken by such companies to ensure their future and shareholder returns as opposed to the greater collective good.
This is why, as mentioned earlier, most families see their fortunes continue to increase after a successful company is established. The ownership of the company continues to dilute among members of the family through successive generations, which ensures that, in many cases, while one person's net worth may not be extremely impressive at an individual level, the wealth and power commanded by the entire family remains unrivaled. Meanwhile, the term "family" invokes a feeling of trust, which is why studies have shown that family run businesses often out-perform regulation companies.
Academic Studies on the Success of Family Owned Companies
Many different academic studies have taken place, across various countries, to determine whether family-run businesses are more successful than those which are not family owned. A professor in the Harvard Law School Forum on Corporate Governance stated that investors tend to be more trustful of family-owned business, especially when the CEO is the company's founder as “owner-manager agency conflicts will be mitigated by the involvement of founding families with strong incentives to monitor.” Even acquisitions and divestitures led by family-owned firms have seen more success and a higher return for shareholders. This was backed by a study conducted by the Family Business Stock Index, which, after tracking performance of family-owned stock and non-family owned stock across a period of two decades from 1976 to 1996, discovered that the latter's return of 14% was significantly bettered by the former's return of 16% across the time period. The difference was even starker when only comparing stock prices; family-owned businesses saw a return of 13.9% while non-family owned businesses only returned 9.6%.
A more recent study in this phenomenon was conducted in 2022 by the University of Pavia's Department of Economics and Management. The results of the study showed that family-owned stock convincingly outperf0rmed non-family owned stock, mainly because family firms are more focused on growth and better returns, in addition to greater use of long-term strategy as opposed to short-term profits.
The richest families in the world come are from all over the world, though a large number are from the U.S., and combined, have a net worth well in excess of $2 trillion. We have not considered individuals such as Jeff Bezos or Elon Musk, whose net worth may be much higher than many of the global richest families, since their fortunes are at an individual level. We have considered the net worth of royal families in our rankings as well, a change in methodology from our previous such publication. Using Forbes and Bloomberg as our primary sources and The Economic Times as an additional source, all families are based on their latest recorded net worth.
Net worth: $15 billion
The Dorrance Family's vast fortune is derived from Campbell Soup Company (NYSE:CPB), which is now one of the largest processed food companies globally.
Net worth: $15.5 billion
The Hunt family saw its fortune decline from 2014 to 2016, but saw a resurgence in the last 7 years, climbing back up to $15.5 billion recently.
Net worth: $16 billion
The Du Pont Family owns one of the oldest corporations in the country, with the chemical company being split into 3 companies in 2019.
Net worth: $17.6 billion
The Busch Family derived its fortune from Anheuser-Busch, which was sold in 2008 to Inbev, thus forming the largest beer company in the world in Anheuser-Busch InBev SA/NV (NYSE:BUD).
Net worth: $17.8 billion
The Butt Family owns the H.E.B grocery store chain which has nearly 350 locations across the country and Mexico.
Net worth: $18.5 billion
The Marshall Family's fortune is old money, having been derived from its partnership with the Koch family, with the latter being among the richest and most influential families not just in the U.S. but the world.
Net worth: $20.4 billion
You may not have heard of Brown-Forman Corporation (NYSE:BF.B) but you'll have heard of its most famous brand Jack Daniels, which along with some other brands, has allowed the Brown Family to accumulate a huge fortune.
Net worth: $21 billion
The Hearst Family is one of the most well-known families in the U.S. and among the oldest richest families, established by magnate William Randolph Hearst. However, considering the family's decline in wealth since its fortune is derived from the dying industry of broadcasting and publishing, the Hearst family may not be counted among the most powerful families in the world for much longer.
Net worth: $22 billion
The Dunacan's Family claim to being among the richest families in the world and their stock is the major industrial company Enterprise Products Partners L.P. (NYSE:EPD).
Net worth: $28 billion
The Royal Family of Brunei, or the House of Bolkiah, is currently one of the richest families across the globe, with the Sultan of Brunei also being its head of government.
Net worth: $30 billion
We have determined the ranking of the Royal Family of Thailand by going with the lowest estimate from the Economic Times, of $30 billion. The current family has ruled for nearly 350 years. Thailand has some of the strictest rules regarding criticism of the monarchy.
Net worth: $30 billion
If you're an avid reader, you'll probably have heard of Conde Nast, which owns some of the biggest publications in the world including Vanity Fair, The New Yorker and Vogue.
Net worth: $32.5 billion
The Pritzker Family owns one of the largest hotel chains in the world in the Hyatt Hotels Corporation (NYSE:H).
Net worth: $34.5 billion
Cox Enterprises, owned by the Cox Family is a company present in the communications and automotive sector.
Net worth: $36 billion
The Johnson family owns Fidelity, a money management company which currently manages around $11.1 trillion in assets globally, with the company being counted among the biggest asset management companies in the world.
Net worth: $37 billion
S.C. Johnson is one of the largest private consumer goods manufacturers in the world, producing household cleaning supplies. It is considered to be among the oldest family held businesses in the U.S.
Net worth: $40 billion
The Lauder family owns one of the biggest beauty companies in the world in The Estée Lauder Companies Inc. (NYSE:EL). The Estée Lauder Companies Inc. (NYSE:EL) was established in 1946 by the company's namesake Estee Lauder.
Net worth: $47 billion
Long considered to be one of the biggest private companies in the world with annual revenue regularly exceeding $150 billion, the Cargill-MacMillan family is easily among the richest families in the world and their stock may not be public, but is still among the most valuable globally.
Britain used to be one of the biggest empires on Earth, with the royal family's fortunes derived mainly from plundering other nations. However, the monarchy's existence may be at threat now with the death of Queen Elizabeth II, who was credited with earning the royal family respect from the nation and beyond in an era where royal families in the West are mainly outdated.
Net worth: $94 billion
The Mars family is home to some of the most famous confectionary brands in the world, which is also one of the biggest private companies in the world.
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Disclosure: None. 25 richest families in the world and their stock is originally published at Insider Monkey.
