The Great Divide
The Forbes billionaire list divides neatly into two categories: those who built their wealth (self-made) and those who inherited it. But which type of wealth is more durable?
The Numbers
Of the world's 3,000+ billionaires:
- ~65% are self-made: Built their fortunes from scratch
- ~35% are inheritors: Received significant wealth from family
Self-Made Advantages
- Skills and Knowledge: Founders understand their businesses deeply
- Hunger: Self-made billionaires often have stronger drive
- Adaptability: They've proven they can build in changing conditions
- Networks: They've built relationships that protect wealth
Inheritor Advantages
- Diversification: Inherited wealth is often already diversified
- Structures: Family offices and trusts are already in place
- Time: Inheritors can focus on preservation, not creation
- Education: Many are trained from birth in wealth management
The Data
Studies show:
- Self-made billionaires are more likely to lose their fortunes through business failure
- Inheritors are more likely to lose through poor management and spending
- Both face the "shirtsleeves to shirtsleeves" curse by the third generation
The Chronos Score Perspective
Self-made billionaires tend to be younger (they had to build their wealth). Inheritors tend to be older (they waited for inheritance).
This gives self-made billionaires higher average Chronos Scores—not because their wealth is more durable, but because they have more time ahead.
Conclusion
Neither self-made nor inherited wealth is inherently more durable. What matters is:
- Diversification
- Governance structures
- Financial education
- Culture of stewardship
The source of wealth matters less than what you do with it.
Explore self-made vs. inherited billionaires with our rankings.