[Aaron C.]

The Forbes 400

Meet the richest people in America

The rich once again are getting richer, Forbes finds in its annual survey of the country's wealthiest citizens. What a relief.


By Forbes




After two years of declining values, the rich finally got richer. In the 21st annual edition of The Forbes 400, the aggregate net worth of the nation's wealthiest 400 citizens leapt 10% in the past year, to $955 billion -- just one Bill Gates away from $1 trillion.

Leading the charge: Internet stocks. Jeff Bezos added more than $3 billion to his net worth with a tripling of Amazon.com's (AMZN, news, msgs) share price. Yahoo!'s (YHOO, news, msgs) David Filo and Jerry Yang nearly tripled their wealth, while the fortunes of eBay's (EBAY, news, msgs) Pierre Omidyar and Meg Whitman rose almost 50%. With help from a fin-challenged clown fish named Nemo, Steve Jobs moved up 44 places in our rankings to 78th.

Financiers also fared well: Carl Icahn moved up $1.5 billion, a third of it stemming from his takeover of XO Communications (XOXO, news, msgs). Investor Bruce Kovner made $500 million betting on the bond and currency markets.

Other fortunes were not so fortunate. A rising price of admission -- $600 million -- pushed 20 members off the list, including wrestling's Vince McMahon and Global Crossing's (GBLXQ, news, msgs) Gary Winnick. Their places were filled by newcomers like hedge fund managers Steve Cohen and Ken Griffin, both of whom would prefer we keep them out of our club. Their lack of enthusiasm is more than made up for by oil tycoon Patrick Taylor, who is proudly using his $700 million to send hundreds of kids to college.

Meet the richest people in America:

1. William H. Gates III
$46 billion, Microsoft (MSFT, news, msgs)
Medina, Wash.; 47. Married, three children

Microsoft has been acting more mature -- paying out dividends, nixing stock options -- but is no less formidable: "We're just at the beginning of what we can do with software," proclaimed Gates at the company meeting in July. Microsoft's chief software architect is pushing to move the company beyond PCs into TVs, cell phones, cars, even wristwatches. Its flagship Windows operating system runs 94% of the world's desktop computers, but the company is facing heated pressure from Linux, whose open-source system for servers is growing more quickly than Microsoft's. Expectations are high for Windows successor, dubbed Longhorn, which might surface in 2005. Outside the office, the world's biggest philanthropist is devoting billions to eradicating infectious diseases (polio, AIDS) and developing vaccines through the $24 billion Bill & Melinda Gates Foundation. Gates is methodically diversifying: He sells 20 million shares a quarter and reinvests it via Cascade Investments with stakes in Cox Communications (COX, news, msgs), Canadian National Railway (CNI, news, msgs), Republic Services (RSG, news, msgs). (Note: Microsoft publishes MSN Money.)

2. Warren Buffett
$36 billion, Berkshire Hathaway (BRK.A, news, msgs)
Omaha; 73. Married, three children

The Oracle of Omaha has assumed a Delphic role as Arnold's economic adviser in the California governorship race. Maybe that's because he's so dismayed with governance in the corporate sphere: "Accountability and stewardship withered in the last decade." He takes some of the blame personally. "Too often I was silent when management made proposals that I judged to be counter to the interests of shareholders." Otherwise he has an impeccable track record. Buffett studied under investment guru Benjamin Graham at Columbia. He applied value investing principles to build Berkshire Hathaway into a $116 billion (market cap) holding company: insurance (General Re, Geico), with substantial stakes in American Express (AXP, news, msgs), Coca-Cola (KO, news, msgs), Gillette (G, news, msgs) and Wells Fargo (WFC, news, msgs). It also includes a wide assortment of operating companies that tickle Warren's fancy: Fruit of the Loom (FTLAQ, news, msgs), Pampered Chef, NetJet. Buffett believes Berkshire should be a "fortress of financial strength." It has been just that: Over the past 38 years, Berkshire's per-share book value has grown from $19 to $41,727, a rate of 22.2% compounded annually.

3. Paul Allen
$22 billion; Microsoft, investments
Seattle; 50. Single

The Microsoft co-founder's "wired world" vision is not looking visionary just yet, but Allen still has plenty of room for risk thanks to a $5 billion Microsoft stake. He oversees investments through his Vulcan Ventures, which increased its stake in cable company Charter Communications (CHTR, news, msgs) despite indictment of four former senior execs for inflating results; and dumped its big investment in drug company Vaxgen, maker of a failed AIDS vaccine. Dozens of other technology projects are not quite ready for prime time. Perhaps he'll have better luck in bricks and mortar. He plans to develop a 50-acre "bioscience hub" in Seattle with commercial and residential space; Merck (MRK, news, msgs) already has signed on as a tenant. Other projects: a science fiction museum alongside his Experience Music Project in Seattle. Among the collection: the original captain's chair from the "Star Trek" television show. Allen is a collector of vintage military airplanes, including WWII-era Spitfire and Zero. He joined Bill Gates in 1975 to start Microsoft and left in 1983 to fight Hodgkin's disease. He has been a slow but steady seller of Microsoft ever since.

4-8. The Waltons
Helen R. Walton
$20.5 billion; Wal-Mart Stores (WMT, news, msgs)
Bentonville, Ark.; 84. Widowed, 4 children

S. Robson Walton
$20.5 billion; Wal-Mart
Bentonville, Ark.; 59. Divorced, three children

John T. Walton
$20.5 billion; Wal-Mart
Bentonville, Ark.; 57. Married, one child

Jim C. Walton
$20.5 billion; Wal-Mart
Bentonville, Ark.; 55. Married, four children

Alice L. Walton
$20.5 billion; Wal-Mart.
Fort Worth, Texas; 54. Twice divorced

These are the widow and children of Sam Walton (d. 1992), who opened his first general store in Rogers, Ark. in 1962. Wal-Mart is now the world's largest retailer: 4,000-plus stores around the globe. The family controls 38% of Wal-Mart, but prefers a passive role: Robson serves as chairman; his younger brother, John, a director. Other siblings keep close to their Arkansas roots. Jim is president of Arvest, the state's biggest bank. Alice raises horses on a Texas ranch. The family last year donated $750 million-plus, much to education, including $300 million to the University of Arkansas. But family largesse has not been enough to quell accusations that Wal-Mart wields too much clout. If Sam were alive today, he would be worth twice as much as Bill Gates.

9. Larry Ellison
$18 billion; Oracle (ORCL, news, msgs)
Redwood Shores, Calif.; 59. Thrice divorced, 2 children

The Oracle chief turned Silicon Valley into a war zone in June, announcing a $7.3 billion bid for business-software rival PeopleSoft (PSFT, news, msgs). Decorum was not part of the deal: He initially threatened to not sell PeopleSoft products to new customers and to fire employees. PeopleSoft, headed by ex-Oracle exec Craig Conway, is still putting up a fierce fight. Any deal will have to pass scrutiny of the Department of Justice. Chicago native Ellison took Oracle public in 1986, one day before Microsoft, and has fired shots over Gates' bow ever since. Latest salvo: an alliance with Sun Microsystems (SUNW, news, msgs) to run Oracle software on Sun's Linux machines. His personal net worth is down sharply from its $58 billion peak in 2000, but he finds no irony prophesying doom for all but the biggest in the computer industry.

10. Michael Dell
$13 billion; Dell Computer (DELL, news, msgs)
Round Rock, Texas; 38. Married, 4 children

The soft-spoken Texan continues to dominate the brutal market for personal computers by clawing his way into servers, storage and services: "I think of us as the hunter, not the hunted." That's just the attitude needed to keep Dell the world's biggest seller of PCs. Latest prey: Hewlett Packard (HPQ, news, msgs) and Apple Computer (AAPL, news, msgs). He plans to challenge them in printers and gadgets. Though Dell's build-to-order business model had little fat to trim, lean times forced him to find a way. The company lowered operating costs to 10% of sales, down from 12% in 2000. The result: Earnings are up 31%. Dell started selling computers from his dorm room in 1984 and dropped out to start Dell Computer, which he took public in 1988. He's recently been selling shares and diversifying his portfolio via MSD Capital.

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Would $46 billion be enough for you and what would you do with that kind of money?

[CCHADWI]

I know I would buy a chain of islands, and a large boat. Build a few holes of golf on them, and sip a few margarita's and Red Stripes down. I would have to have some friends and my woman(which I haven't found yet) down there with me. Other than that, I would travel some and make sure my loved ones are taken care of. The only other thing you can do is blow it on stupid things and gamble it away. Aahhhh, if I could be so lucky.

One of these days, huh, Cooper?

Charles

[TracyR]

One of these days indeed !!!!!!!!!!!!!!!!!!!!!!!!!!!!

[TravelPat]

I would have fun fun fun and spread around to all my family and friends. Oh yeah first pay off every freakin' bill.
Yes I would continue to work, as I truly love travel nursing and I am having the time of my life doing this.

[kristycarberry]

I would pay off all of my bills, all of my families bills and go from there. I think I would adopt about ten children. I like kids, but I would do it more so because so many children don't even have a chance. Then I would have to build a house to put all of those children in! I would make sure that everyone in my family had a very nice car and home. Not to mention well equipped home AND closet! Oh yeah, I would do some serious clothes shopping. I would donate a large amount of money to the American Cancer Society. I would set up a fund to treat children born with HIV and drug addicted babies. Gosh, you would think I want to go into peds, but I don't. Can't stand to see them hurt. And no, I don't have any children yet. Want to wait on the right time! I would give a lot of my money to ****er spaniel rescue associations. Yep, do have one of those, just got him this week! I would give money to the Veterans organizations. Now, don't get me wrong, I would buy a lot of things for myself, including a yacht! But I would also spread the wealth. I would not be happy knowing that I had THAT much money and didn't spread it around. That is, if I had any left after taxes (hehe)
I don't know if I would work a normal job, but I think I would at least have to do some volunteer work. I didn't work or go to school for the 6 months after I got out of the Navy and I went just about insane!
So yeah, that is my long reply to a short question. I wouldn't know WHAT to do with that much money is my short answer!!

[medi]

If only!!!

First of all I'd pay off my car and house, then set up a trust for my daughter with enough money in it that she could draw a decent annual amount from interest alone (without being able to touch principal at all)- then I'd invest most of the balance in various secured investments so I could operate off the interest and not the principal as well.

Then I'd charter a windjammer cruise ship & crew for a year & go visit places I've always wanted to see- stay a while in Greece, kick up the sand on the beaches in Rio, wiggle my toes in the heather of the Scottish highlands etc..

Help fund some cancer research with leftover interest monies... adopt some hard to place orphan kids and give them adventures, love, and educations we could only dream about... and just enjoy living without all the anxiety having too little money brings.

Ah if only...

[TracyR]

I thought I'd just post a little something to think about...

Does that much money really mean happiness? Yeah...sure... I'd buy the big house, set up the trust funds for the kids, give a lot to my true friends, fix up my parents affairs really good, but...

In the end, on your death bed, how much of it will you be taking with you? And when you think about it, really, how many true friends will you have when you die?

Honestly, money would not do much for my happiness right now. I enjoy the simpler things. (I didn't say I'd turn down a big lotto win!)

[CCHADWI]

Tracy, I see your point, money doesn't buy happiness, but it sure makes life a lot easier. With money, you can enjoy some of the finer things in life, without having the day to day worries of budgeting and financing that almost everyone has.

If anyone has those winning numbers for the lotto, let me know.

[mercynurse]

I'd just like the opportunity to find out what it's like to have unlimited funds!! I'm happy...but I sure could do a lot for others in my family if I had more.

[Aaron C.]

"When you die, on your death bed, you shall recieve total consciousness. So I got that goin' for me....which is nice"

-Carl Spackler