Michael Bloomberg has been in the public spotlight more than usual lately, as he is attempting to win the Democratic ticket for the presidential election. Stemming from a computer background more than purely investment experience, Bloomberg’s success comes from realizing the gap between investors and the financial data needed to make informed decisions.
Bloomberg's Net Worth
The short answer here is: a lot of money. Forbes lists Michael Bloomberg’s net worth at $62.8 billion. His wealth stems from his ownership stake in Bloomberg LP, but as discussed below, he made good money working at an investment bank first.
1964-1966- Studying at Johns Hopkins and Harvard, Bloomberg acquired a mechanical engineering degree before obtaining his MBA.
1966-Bloomberg’s career actually began at Salomon Brothers, a New York-based investment bank, where he worked his way up.
1970-Bloomberg became a partner in the investment bank
1979-Getting involved in the IT department at the bank, Bloomberg began to learn the ins and outs of computers within the financial world.
1981- Fate took a hard turn when Salomon Brothers was eventually bought out in a merger. Bloomberg was fired, leaving him looking for a new path. Of course, it wasn’t all bad. He was given a severance package of $10 million, part of which he used to start his own company. Bloomberg LP operates in various segments of financial news and data distribution.
To say it has been a successful operation is putting it lightly. The company reportedly did $10 billion in revenues in 2018. The secret to the company’s success is without question the Bloomberg terminal. In a nutshell, it’s a software service that provides those in the financial industry access to immense amounts of data on almost everything related to markets. Because Bloomberg himself owns about 88% of the company, he benefits greatly when the enterprise does well.
Political Views and Controversies
Outside of the business, Bloomberg has also had a career in politics. Her served as the mayor of New York City for three terms. Winning the 2001 election, he gained enough popularity in his first term to win reelection in 2005. An area of controversy was his third term. In 2008, legislation was proposed to allow a mayor to run for a third term. The city council approved a bill extending term limits, and in extension, Bloomberg’s political career in New York.
His political party affiliations have shifted through time. Having been a Democrat, he shifted to a Republican before he ran for mayor. These days, he has shifted further left again.
Supporting a strong stance on gun control, Bloomberg advocates universal background checks, and an unconditional ban on assault weapons. In 2014, he financed a gun control initiative with $50 million. Bloomberg’s stances certainly draw a line between him and many Republicans on this issue.
Bloomberg is also a voice on climate change. His views go against coal and natural gas, and emphasize green resources. Last year, he pledged $500 million to a campaign to end coal-based power plants in the U.S. This again is an issue between pro-business advocates, and those that want to see a leveling off of our carbon footprint.
With his current campaign for the Democratic ticket in the upcoming presidential election, Bloomberg has set his political ambitions higher. He jumped into the race later than most, and has missed the first four primaries. Nonetheless, the scope of his finances, and the seemingly fragmented field made his success a possibility. However, after failing to gain significant ground on Super Tuesday to frontrunners Joe Biden and Bernie Sanders, Bloomberg announced that he would be dropping out of the race and endorsing Biden.
Outside of his majority stake in Bloomberg LP, he owns some pretty nice real estate. He has a five-story home in Manhattan that was reportedly renovated for $1.7 million. He has a $20 million home in the Hamptons, and is rumored to own a large home in Bermuda. His international assets are not limited to tropical islands, he also owns a $25 million mansion in London.