There is no way around the Rockefeller name being associated with money, as it’s synonymous with immense wealth and the realization of the American Dream. The family’s fortune, established by America’s first billionaire John D. Rockefeller Sr., the founder of the Standard Oil Company in the late 19th century, has endured for generations, making the Rockefellers one of the wealthiest families in history.
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In large part, this massive amount of money was thanks to the following factors:
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At one point, the company-controlled 90% of U.S. refineries and pipelines, which led Rockefeller to become the richest man in the world and one of the first billionaires.
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The family fortune was valued at over $600 billion in today’s dollars. Today, that translates to one of America’s richest families having a net worth of $10.3 billion.
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The Standard Oil Company would later evolve into the ExxonMobil and Chevron corporations that everyone knows today.
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The Rockefellers also developed one of the first major business trusts, which controlled Chase Manhattan Bank, now known as Chase Bank.
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The Rockefeller Foundation went on to establish themselves as industrialists and philanthropists throughout U.S. history, and have given away an estimated $1 billion to varying charitable causes.
Over a century later, the Rockefeller generational wealth still establishes them as one of the richest families in the world. Valued at $10.3 billion among 70 heirs and family members, the fact that the Rockefellers have continued to keep the wealth in the family for decades is proof of their knowledge in investing in generational wealth building. Here are five ways the Rockefellers built and sustained their generational wealth.
To further grow the Rockefeller wealth, they safeguarded their real estate and bond investments which supplied both physical assets that grew in value over time and consistent income. A well-diversified and balanced portfolio helped offset riskier ventures and protected their fortune.
The Rockefellers recognized the importance of diversification in wealth preservation. While the initial fortune was built on oil, the family expanded their investments into various sectors over the years and have stakes in real estate, industry and even venture capital, thus ensuring a consistent growth and safeguarding of their wealth against market volatility.
Rockefeller Center alone was purchased out by Jerry Sperry for a whopping $1.8 billion. With Exxon mobiles and Chevron stations still being built today, the family has consumed and purchased many companies over time such as General Mills, Kellogg, Nestle, Bristol-Myers Squibb and Procter and Gamble to name only a few.
Though most of us don’t have billions lying around to purchase a company like Nestle, it is great advice to diversify one’s money into companies, through our own research, to bank on being successful.
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Philanthropy has been a significant aspect of the Rockefeller family’s legacy, and each generation has taken up the torch. In fact, he and his son John D Rockefeller Jr. dedicated themselves to philanthropy, giving away more than $1 billion and establishing the University of Chicago.
The establishment of numerous charitable foundations has not only contributed positively to global society but also helped in maintaining and enhancing the family’s reputation. Their philanthropic efforts have facilitated network building and influence expansion, inadvertently aiding in wealth preservation and growth.
Simply put, the more you give, the more you make.
Rockefeller’s wealth preservation strategy, aside from trusts and charities, includes careful financial management, methods and strategies. He diversified his portfolio by investing in industries that promised both growth and stability, and this financial acumen and planning have been pillars in the Rockefeller wealth management strategy.
The family has consistently employed top financial advisors to oversee their investments, ensuring that they are positioned for growth and are shielded from unnecessary risks. This prudent financial management has been pivotal in maintaining and growing the family’s substantial fortune.
Rockefeller’s investment in education was astronomical but it was for more than simply philanthropy. This gesture all but guaranteed the continuous growth and maintenance of his wealth. By investing in educational institutions and programs, he produced legacies like the following:
The Rockefellers place significant emphasis on family governance and education as their own form of estate planning. They ensure that each generation is well-educated, not just in terms of formal education but also in terms of financial literacy and wealth management, to better reach long-term financial goals. Not just New York State but the greater United States has benefitted from the funding the Rockefeller family put into education.
Typically, when you look at a historically rich family, the money fizzles out over a long timeline due to changes in industry or investment trends. However, the backbone of the Rockefeller’s wealth creation strategy has been their capacity for innovation and adaptability.
They have consistently adapted to changing economic landscapes, adopting new technologies and strategies to enhance and protect their wealth. This proactiveness and foresight have allowed them to remain financially dominant over the decades.
The Rockefeller family’s ability to amass and sustain generational wealth stems from diversified investments, philanthropic activities, strategic financial management, emphasis on family governance and education and a continual commitment to innovation and adaptability. Their approach offers valuable lessons for wealth creation and preservation in today’s dynamic financial environment.
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This article originally appeared on GOBankingRates.com: Grow Money Like the Rockefeller Family– 5 Ways They Created Generational Wealth
