j***@hotmail.com
2008-03-09 05:58:41 UTC
http://finance.yahoo.com/family-home/article/104571/Flashy-Billionaires;_ylt=AtPJH4__G7zPxB1bcUU_bw5O7sMF
Flashy Billionaires
by Nate Chapnick
Saturday, March 1, 2008
Self-made billionaire Stephen Wynn, who owns casino resorts like the
Wynn Las Vegas, recently bought his wife Elaine a blue 2007 Ferrari
F430 Spyder on a whim during a tour of Ferrari's factory in Milan.
"While we were there, the boys were oogling and ogling," Mrs. Wynn
says, "and then we came across this exquisite blue Ferrari and Steve
said, 'I'm buying you that because it looks like your eyes.' That's
what I got. So naturally I love it."
Mrs. Wynn also drives a Bentley Arnage and Jeep Grand Cherokee, but
appreciates the thrill of the Ferrari, even if it comes with
compromises. "It's just a sound unlike any other car and driving it is
so much fun, especially with the paddles," she says, referring to the
controls behind the steering wheel for shifting gears. "I never
complain about it messing up my hair even though it's a convertible --
I love a convertible."
Not all billionaires splurge on pricey new cars or weave them into
their empires as Steve Wynn does -- the Wynn Las Vegas hotel and casino
includes a Ferrari/Maserati dealership and Rolls-Royce Phantom sedans
for VIP guests, which some say is the largest fleet of these $330,000
limos in North America.
In fact, some of the world's richest people, whose fortunes far exceed
Mr. Wynn's $3.9 billion in assets, don't seem to care at all about
flashy rides. Master investor Warren Buffett, worth more than $50
billion, drives a relatively common Cadillac DTS sedan. Wal-Mart
heiress Alice Walton, with assets in excess of $15 billion, owns a
Ford F-150 pickup.
How billionaires spend their money is more than just a function of how
much they have. "It really comes down to age, how the wealth was
obtained, where the billionaire's primary residence is, their
upbringing, and what other focuses they may have in their lives," says
Milton Pedraza, CEO of the Luxury Institute in New York. "The
billionaires who have a passion for cars are the ones who will have
the spending power to build the most impressive collections."
Few car collections rival Ralph Lauren's. The fashion magnate and
founder of apparel-maker Polo has used his net worth of $4.7 billion
to acquire some of the world's rarest vehicles, including a 1929
Blower Bentley, 1955 Mercedes-Benz 300 SL Gullwing Coupe, 1962 Ferrari
250 GTO, 1996 McLaren F1, and 2007 Bugatti Veyron. All are legendary
among auto enthusiasts and many of them command seven figures because
of it.
Lauren's stockpile of incredible vehicles is so impressive that the
Museum of Fine Arts in Boston dedicated an entire exhibit to his
stable in 2005, called "Speed, Style, and Beauty: Cars from the Ralph
Lauren Collection."
"When you get to this level, people like Lauren even have a full-time
third-party expert involved," says Kemp Stickney, president and
director of asset management firm Wilmington Trust Florida. Lauren
employs an automobile curator who manages the collection and sends
requested vehicles to wherever Lauren happens to be.
Experts like these often show up at automotive auctions and at events
like the Pebble Beach Concours d'Elegance, where high-dollar autos are
bought, sold, and shown off. "A lot of billionaires have people that
represent them at these events -- if you're at Pebble and it's one of
Lauren's cars crossing the finish line, then it's most likely piloted
by Paul Russell, his personal automotive representative," Stickney
says.
Real estate tycoon Donald Trump also spends wildly on cars. His $3
billion net worth allows him to indulge in multiple Rolls-Royce
Phantoms and a $175,000 Ferrari F430, just to name a few. In past
seasons of his television show, "The Apprentice," Trump was seen
rolling up in a Mercedes-Benz SLR McLaren, a rare super car, and a
custom Mercedes-Benz S-Class stretch limo.
"Trump is someone who wants to be a trend setter, someone who sports
new things to signify to others that he is of refined taste and upper-
class privilege," says C. Margaret Hall, professor of sociology at
Georgetown University in Washington, D.C. She says that predominant
consumerist values in society make billionaires significant for
trendsetting and conspicuous consumption.
But it's not just mindless buying -- rather, it's spending as a way to
build a persona. "Identity in this type of society is garnered from
making a mark with your physical goods," Hall says. "This mark is to
own the latest, rarest, and most expensive material goods so as to be
seen as innovative, an influencer, and someone skilled with managing
money."
Of all the material goods billionaires might amass, cars in particular
seem to be a badge of honor whose importance is growing among the
world's wealthy elite.
Sales of ultra-luxury vehicles sold in the U.S. will increase from
1,762 in 1990 to a projected 11,755 for 2008, says John Wolkonowicz,
senior automotive analyst at Boston-based Global Insight. "And by 2013
you'll see sales of 13,472," he says.
Wolkonowicz also expects the number of ultra-luxury car companies to
grow to 24 by 2013, up from 13 in 1990.
"The number of ultra-high-net-worth individuals is increasing at a
record pace, and this trend fares well for Bugatti, whose customers'
minimum net worth starts at $200 million," says John Hill, market
manager for Bugatti Automobiles USA.
The world's ultra-high-net-worth population has grown 11.3 percent to
94,970 and their combined total assets have risen by 16.8 percent to
$13.1 trillion, according to the 2007 Capgemini-Merill Lynch World
Wealth Report. To qualify for the "ultra high net worth" category in
this report, individuals must have at least $30 million of assets,
excluding their residence and any collectibles.
Using state Department of Motor Vehicle records and other sources,
we've assembled a list of billionaires from among the Forbes 400
richest Americans whose taste in cars is decidedly flashy; people like
Ed Lampert, the man who rescued Sears and Kmart by organizing a 2005
merger, who owns an Aston Martin Vanquish.
For all the status they do afford, billionaires don't necessarily see
their expensive and rare cars only as fanciful collectibles. Like
everyone else, billionaires need to get around too. "I pretty much
drive myself all over. I drive several times per day," Mrs. Wynn says.
"It all depends on my schedule and if we have a lot of activities and
such at the hotel. I'm out quite a bit and I go to visit children and
grandchildren."
It must be quite a scene when Grandma pulls up in a blue convertible
Ferrari.
Copyright (c) 2008 Forbes.com LLC
Flashy Billionaires
by Nate Chapnick
Saturday, March 1, 2008
Self-made billionaire Stephen Wynn, who owns casino resorts like the
Wynn Las Vegas, recently bought his wife Elaine a blue 2007 Ferrari
F430 Spyder on a whim during a tour of Ferrari's factory in Milan.
"While we were there, the boys were oogling and ogling," Mrs. Wynn
says, "and then we came across this exquisite blue Ferrari and Steve
said, 'I'm buying you that because it looks like your eyes.' That's
what I got. So naturally I love it."
Mrs. Wynn also drives a Bentley Arnage and Jeep Grand Cherokee, but
appreciates the thrill of the Ferrari, even if it comes with
compromises. "It's just a sound unlike any other car and driving it is
so much fun, especially with the paddles," she says, referring to the
controls behind the steering wheel for shifting gears. "I never
complain about it messing up my hair even though it's a convertible --
I love a convertible."
Not all billionaires splurge on pricey new cars or weave them into
their empires as Steve Wynn does -- the Wynn Las Vegas hotel and casino
includes a Ferrari/Maserati dealership and Rolls-Royce Phantom sedans
for VIP guests, which some say is the largest fleet of these $330,000
limos in North America.
In fact, some of the world's richest people, whose fortunes far exceed
Mr. Wynn's $3.9 billion in assets, don't seem to care at all about
flashy rides. Master investor Warren Buffett, worth more than $50
billion, drives a relatively common Cadillac DTS sedan. Wal-Mart
heiress Alice Walton, with assets in excess of $15 billion, owns a
Ford F-150 pickup.
How billionaires spend their money is more than just a function of how
much they have. "It really comes down to age, how the wealth was
obtained, where the billionaire's primary residence is, their
upbringing, and what other focuses they may have in their lives," says
Milton Pedraza, CEO of the Luxury Institute in New York. "The
billionaires who have a passion for cars are the ones who will have
the spending power to build the most impressive collections."
Few car collections rival Ralph Lauren's. The fashion magnate and
founder of apparel-maker Polo has used his net worth of $4.7 billion
to acquire some of the world's rarest vehicles, including a 1929
Blower Bentley, 1955 Mercedes-Benz 300 SL Gullwing Coupe, 1962 Ferrari
250 GTO, 1996 McLaren F1, and 2007 Bugatti Veyron. All are legendary
among auto enthusiasts and many of them command seven figures because
of it.
Lauren's stockpile of incredible vehicles is so impressive that the
Museum of Fine Arts in Boston dedicated an entire exhibit to his
stable in 2005, called "Speed, Style, and Beauty: Cars from the Ralph
Lauren Collection."
"When you get to this level, people like Lauren even have a full-time
third-party expert involved," says Kemp Stickney, president and
director of asset management firm Wilmington Trust Florida. Lauren
employs an automobile curator who manages the collection and sends
requested vehicles to wherever Lauren happens to be.
Experts like these often show up at automotive auctions and at events
like the Pebble Beach Concours d'Elegance, where high-dollar autos are
bought, sold, and shown off. "A lot of billionaires have people that
represent them at these events -- if you're at Pebble and it's one of
Lauren's cars crossing the finish line, then it's most likely piloted
by Paul Russell, his personal automotive representative," Stickney
says.
Real estate tycoon Donald Trump also spends wildly on cars. His $3
billion net worth allows him to indulge in multiple Rolls-Royce
Phantoms and a $175,000 Ferrari F430, just to name a few. In past
seasons of his television show, "The Apprentice," Trump was seen
rolling up in a Mercedes-Benz SLR McLaren, a rare super car, and a
custom Mercedes-Benz S-Class stretch limo.
"Trump is someone who wants to be a trend setter, someone who sports
new things to signify to others that he is of refined taste and upper-
class privilege," says C. Margaret Hall, professor of sociology at
Georgetown University in Washington, D.C. She says that predominant
consumerist values in society make billionaires significant for
trendsetting and conspicuous consumption.
But it's not just mindless buying -- rather, it's spending as a way to
build a persona. "Identity in this type of society is garnered from
making a mark with your physical goods," Hall says. "This mark is to
own the latest, rarest, and most expensive material goods so as to be
seen as innovative, an influencer, and someone skilled with managing
money."
Of all the material goods billionaires might amass, cars in particular
seem to be a badge of honor whose importance is growing among the
world's wealthy elite.
Sales of ultra-luxury vehicles sold in the U.S. will increase from
1,762 in 1990 to a projected 11,755 for 2008, says John Wolkonowicz,
senior automotive analyst at Boston-based Global Insight. "And by 2013
you'll see sales of 13,472," he says.
Wolkonowicz also expects the number of ultra-luxury car companies to
grow to 24 by 2013, up from 13 in 1990.
"The number of ultra-high-net-worth individuals is increasing at a
record pace, and this trend fares well for Bugatti, whose customers'
minimum net worth starts at $200 million," says John Hill, market
manager for Bugatti Automobiles USA.
The world's ultra-high-net-worth population has grown 11.3 percent to
94,970 and their combined total assets have risen by 16.8 percent to
$13.1 trillion, according to the 2007 Capgemini-Merill Lynch World
Wealth Report. To qualify for the "ultra high net worth" category in
this report, individuals must have at least $30 million of assets,
excluding their residence and any collectibles.
Using state Department of Motor Vehicle records and other sources,
we've assembled a list of billionaires from among the Forbes 400
richest Americans whose taste in cars is decidedly flashy; people like
Ed Lampert, the man who rescued Sears and Kmart by organizing a 2005
merger, who owns an Aston Martin Vanquish.
For all the status they do afford, billionaires don't necessarily see
their expensive and rare cars only as fanciful collectibles. Like
everyone else, billionaires need to get around too. "I pretty much
drive myself all over. I drive several times per day," Mrs. Wynn says.
"It all depends on my schedule and if we have a lot of activities and
such at the hotel. I'm out quite a bit and I go to visit children and
grandchildren."
It must be quite a scene when Grandma pulls up in a blue convertible
Ferrari.
Copyright (c) 2008 Forbes.com LLC