According to the latest ranking by Forbes, Donald Trump is now only in the 544th spot with a net worth of $3.5 billion. Last year, he was at the 336th spot with a $4.5 billion net worth valuation.
The reason for Trump’s drop in net worth is the depressed prices of his real estate in Midtown Manhattan. Forbes magazine said in a statement, “Midtown Manhattan real estate is down; therefore, so is Donald’ Trump’s fortune.”
40% of Trump’s net worth is dictated by real property prices.
In the past, Trump disputed Forbes on how they estimated his wealth as he says the worth of his brand is difficult to put a value on. When Trump campaigned for President, he said his net worth was $8.7 billion.
Forbes uses a “snapshot” methodology wherein they value the assets of a billionaire using stock prices and international exchange rates.
Randall Lane, the editor of Forbes Magazine, says, “We do not give any credit for ‘brand value’ to Trump or Oprah or any other person on our list- we feel a person’s brand value is already reflected in the income and values of the deals they cut. Moreover, we are very comfortable with our estimates for Trump’s tangible holdings, which also factor in things like debt and partnerships as well as current market conditions.”
Forbes noted last year that there is no one more fixated with his or her net worth estimate annually than Trump.
The Trump tower and the eight buildings that are a mile within of it form 40% of Trump’s wealth. Figures show that net operating profits are falling at Trump Tower. In Niketown, its lone tenant, Nike, is reportedly moving out of it.
Trump also spent $66 million of his funds for his presidential campaign. He also paid $25 million to settle a lawsuit on his Trump University, which allegedly swindled millions from students.
According to Forbes, the number of billionaires in its list surged by 13%. There are now 2,043 billionaires compared to 1,810. This is due to stock market uptrends and a rally in commodity prices.
The average net worth of a billionaire now is slated at $3.75 billion.
In the list, U.S. led regarding the number of billionaires at 565.China had 319 billionaires while Germany had 114 billionaires.
China was second with 319 billionaires, and Germany was third with 114.
Bill Gates, Microsoft Founder, continues to lead Forbes List for the fourth straight year. He has a net worth of $86 billion this year. Last year, it was only $75 billion. Super Investor Warren Buffet gets the second spot with a net worth of $75.6 billion while Amazon CEO Jeff Bezos is 3rd on Forbes list with a net worth of $72.8 billion. Facebook CEO Mark Zuckerberg was at number five while Oracle co-founder was at number 7.
Other notable billionaires rounding up the Forbes top 10 include Amancio Ortega, fashion mogul of Zara, Carlos Slim, the Koch brothers, and Michael Bloomberg, who is the former New York City Mayer and Bloomberg News founder.