When it comes to the billionaire who owns a quarter of the world’s wealth, Forbes is reporting that the billionaire is worth a whopping $11.6 billion.
But what does that really mean?
Forbes’ definition of “rich” doesn’t really mean much to most of us.
“Ranking billionaires” is the best way to judge the true worth of a person.
So it’s hard to know exactly what Forbes’ wealth is, and how much it really is.
The website defines wealth in the following way: “The total value of assets held by a person or entity (including his or her real estate, savings, and investments).
Wealth can be defined as the aggregate value of the following assets, together with the associated costs and benefits of ownership, including the value of future gains or losses on the assets.”
That sounds pretty straightforward, right?
Well, there’s a big catch.
Forbes uses the term “assets” to describe real estate.
That includes homes, factories, farms, and businesses.
“Real estate is not the only asset in the list, but it is the only one that can be quantified and is therefore worth more than the sum of the assets it comprises,” Forbes writes.
The site uses that definition to define wealth in a different way: “[Real estate] is the value that a person owns in a specific piece of property or business that he or she controls, whether or not he or the property or the business itself is owned by someone else.
The owner of a real estate business or real estate asset can be classified as an owner of the property itself or as a person who controls the property.”
This means that if you own a mansion, the value you’d be looking at is the real estate itself, not the assets owned by the owners.
The definition doesn’t say anything about the size of a family.
In reality, it doesn’t even include siblings, spouses, or parents.
The value of a single family is roughly the combined value of their assets, and that includes both the real property and the family’s financial affairs.
“If you own three or more properties, it is possible to have one individual control the entire property,” Forbes says.
That doesn’t mean the family is worth more money than it cost to buy them all, of course.
The way Forbes defines “rich”, however, doesn’t make sense.
If the total value you own is $11 billion, then that means that you’re worth $11,000 per dollar, or about $4,000 more than you own.
The problem is, that value is based on a definition that is meaningless for most people.
“The wealth of a group of people is measured by the sum total of all their assets combined,” Forbes wrote.
“A person with $11 million in assets in total is worth about $11M.
A person with about $2 million in real estate assets is worth $1.2M.
There are more than 100 billionaires in the United States and there are more billionaires in China than in the U.S.”
If you think that’s not bad, Forbes suggests you “add the value for the person you’re considering, including any other properties owned by him or her.”
So the only way to determine the true value of wealth is to measure how much people own.
But that’s a very subjective exercise.
For most people, it’s not very difficult to figure out that it’s actually difficult to understand how wealth works.
Forbes points to one of the biggest sources of confusion about wealth, namely “the idea that people don’t know how much wealth is in their name.”
Wealth can vary greatly across generations, even among people who are the same age.
“For most people in their mid-20s, it isn’t clear what they have in their names, nor does it seem to be related to wealth,” Forbes said.
“They are just lumping together assets that have nothing to do with each other.
This isn’t surprising given that the average wealth of Americans in the mid- to late-20th century was just $7,000.
That is not enough to make a significant impact on how much they have.”
The reason it’s so hard to see how wealth actually works is that most people have no idea what “wealth” is.
For example, Forbes said that “in the early years of the 20th century, there were no public statistics about wealth.”
Instead, the U,S.
Census Bureau, which collects data from the Bureau of the Census every year, uses a method called the “National Wealth and Assets Panel,” which is designed to measure the average value of all assets owned in a particular year.
But the Bureau doesn’t keep detailed records of the wealth that people own and how that wealth is distributed among the population.
So the Census Bureau has been unable to figure what the true wealth of the country really is since at least 1875.
The Census Bureau does have a wealth panel for Americans born before 1945, but