America has 615 billionaires, only 6 of them are black

Although becoming a member of the billionaires club is not an easy feat in the United State, achieving this is more difficult for blacks than the whites. In the Forbes 2020 list of billionaires in the US, among the 615 listed billionaires, only 6 are blacks. The extremely low numbers of black billionaires further highlighted the uneven economic distribution that has contributed to the relegated position of the blacks in the states. Also, the extremely low numbers of black billionaires revealed the widening chasm between the economic opportunities made available for black and white Americans. 

For instance, in 1992, McKinsey’s report revealed that the white families recorded a median net worth which was $100,000 above that of the black families. By 2016, the net worth of white families increased to $152,000 above black families. In the same period, the median net worth of the whites increased with another $50,000. All along there was no recorded increase in the median net worth of the black families. This shows that, among other things, blacks in the US are subjected to very limited economic opportunities.

The media is just an aspect of the state’s economy where blacks suffer serious marginalization. This disparity cuts across all aspects of the economy. Needless to say that all of the blacks who made it to the Forbes 2020 list of billionaires are self-made. Their sources of wealth range from technologies to entertainment industries.   

Currently, the United States is facing a national reckoning moment with the ongoing #BlackLivesMatter movement against the dehumanizing treatments of blacks in the states. This movement was triggered by the brutal murder of blacks such as George Floyd, Breonna Taylor, and Ahmaud Arbery. 

However, the recently released list of billionaires in the United States and the extremely low figure of black billionaires further highlight the diversity problem in the US. It shows that segregation cuts across all aspects of the country, especially economic opportunities. The 6 blacks who made it to the list include:

Black Billioniare Jay-Z

Jay-Z

With a net worth of $1 billion, Carter became a member of the black billionaire. Shawn Carter popularly referred to as Jay Z is an award-winning hip hop musician. However, he did not just build his wealth from his music career alone. Aside from being a musician, Jay-Z is also a businessman. 

According to Forbes, Jay-Z has multiple streams of income including his music streaming service Tidal and cognac brand D’Usse which he partly owned with Jouhaud and Casavecchia. Also, in 2007, Jay-Z funded a clothing line that he later sold to Iconix for $204 million. More importantly, Forbes reported that he made approximately $500 million from his 14 No. 1 music albums before taxes.

In 2015, Jay-Z bought his music stream Tidal for $56 million. But in 2017, Sprint invested $200 million into the company to acquire a 33% stack.  This put the company’s valuation at $600 million. According to Forbes, Jay-Z's stack in the company is worth $100 million. 

Furthermore, Jay-Z has a private art collection that is worth $70 million and a stake in Uber of equivalent value. Added to this, he has $50 million in real estate investment. 

These, among others, are what made Jay-Z assets worth more than a billion dollars and qualified him as a member of the black billionaires in the United States. 

Jay-Z is 50 years old and his major source of wealth includes music, business, and investment.

Kanye West

After a lot of campaigns and lobbies to enter into the three comma club list by Forbes magazine last year, Kanye West became the latest American Black billionaire with a net worth of $1.3 billion. He was declared a member of Forbes magazine in April 2020. 

The 43 years old rapper achieved this feat from his music career and his business, especially his brand Yeezy. Although Kanye West’s estimated net worth according to Forbes is $1.3 billion, he claimed to be worth $3.3 billion. 

Michael Jordan

Michael Jordan is a successful basketball player who used his accumulated success from playing basketball to build an amazing footwear brand and other businesses. 

Jordan, at 57 is the highest-paid athlete of all time. His current net worth is $2.1 billion. However, he did not achieve this feat from his sports career alone. His endorsements, sponsorships, and business earned him this feat.

Just from corporate sponsorships alone, Jordan achieved $1.4 billion before taxes. In addition to this, IMDB revealed that his film debut, “Space Jam,” earned $250 million at the worldwide box office. He is one of the richest black males in the world.

In 2010, Jordan purchased an NBA team, the Charlotte Hornets. While the team might be the third least-valuable according to Forbes estimation, this alone contributed immensely to Jordan’s wealth. As it is, the team is estimated at $1.05 billion. 

According to CNN news in 2015, Jordan also made quite a lot of money from his footwear brand. In fact, this was what transported him to the list of black billionaires in the same year. 

Currently, his major source of wealth includes sports, endorsements, and deals.

Billionaire David Steward. 

David Steward

The 68 years old David Steward is the founder of World Wide Technology. According to Forbes, the IT services company generated over $11 billion in sales last year. The company services extend to Citi, Verizon, and the federal government. 

Steward owns a lot of stake in the company, he is currently the company’s chairman. David Steward net worth is $3.5 billion and his major source of income is

information technology services. 

Robert F. Smith

As an investor, Robert F. Smith is the richest black man in the United States with a net worth of $5 billion. He is a Cornell graduate and a former Goldman Sachs executive. 

Smith achieved his multibillion-dollar status from his private equity firm "Vista Equity Partners."  The company is one of the most successful equity firms in the United States with an asset of more than $46 billion and an annualized return of more than 22%.

As a very successful investor, Smith is best known for his Philanthropy and great contribution to the survival of the blacks in the state. In 2017, he was the first African American to sign The Giving Pledge - an invitation-only alliance of billionaires who are ready to give away the majority of their fortune for the improvement and development of the lives of others in the state. 

In May 2019, during the historically black college’s graduation ceremony, he announced a $34 million gift to pay off the student loans of Morehouse College’s class of 2019. He later expanded the gift to cover both the student loan and the parent’s education debt. Smith’s major source of wealth is private equity.

Oprah Winfrey

Oprah Winfrey is the only black woman who has made it into the list of black billionaires in the United State. She currently has a net worth of $2.7 billion. 

Oprah's success story is a challenging one. She was born to a single mother in rural Mississippi, and experience different kinds of abuse while growing up. 

She began her career as a news anchor before spending 25 years hosting the “The Oprah Winfrey Show.” It was her share of the show and the different investments she made with this that earned her the reputation she has acquired today.  

In a news report by the Los Angeles Times, it was revealed that Oprah joined the three comma club in 2003. Today, Forbes estimates her investments and shares to be worth $2 billion. 

According to Forbes, Winfrey, now 66, leverages her shows success to build her own media empire and amassed a fortune of $2.6 billion in the process.

Added to this, she owns 25.5% of her television network "OWN," and an 8% stake in WW International. She also has a creation deal with Apple TV.

In the Oprah magazine, it was revealed that Oprah has voiced character in “Charlotte’s Web,” “The Princess and the Frog,” and “The Bees Movie.” She also starred in movies such as “The Butler,” “Lee Daniels,” and “Selma.”

Who was the first black billionaire?

Out of the 615 persons who made it to the Forbes 2020 list of billionaires, only 6 are blacks. However, before any of these people appeared on the list of billionaires, Robert Johnson emerged as the first black billionaire in 2001. 

According to Forbes, in 2001, Robert became a member of the three comma club with a net worth of $1.3 billion when he sold his cable station “Black Entertainment Television (BET). 

Today, Johnson might not be on the list, but he made history as the first black man to become a billionaire in the United States. 

Now 75 years old, Robert Johnson is currently the owner and chairman of asset management firm RLJ companies which he founded in 2004. Added to this, he is also among the board of directors of many companies including Lowe’s Co and the Smithsonian Institution’s National Museum of African American History and Culture. Below are five important things to note about Robert Johnson. He is the founder of Black Entertainment Television (BET)

In 1980, Robert Johnson built the Black Entertainment Television cable station specifically to enable African-Americans to have more access to cable stations. Johnson learned about the business and technical side of the cable station while he was working on pay-TV.  

In 2001, he sold the company to Viacom for $3 billion. This was what catapulted him to the three comma club. At the time the company was sold, it had reached 62.4 million homes. 

He is the first black man to own a company on the NYSE

There are a lot of black-owned company stocks in the United States. However, only a few are traded on the New York Stock Exchange. Many of the black-owned companies are trading at small-cap. But before any black-owned company stock made it to the NYSE, BET became the first in 1991.

·       Johnson was not born with a silver spoon

The easiest path to success is when you are born into an already successful family and have all you need at your disposal. However, this is not the case for Robert Johnson.  Johnson, like many successful blacks in the United States, achieved his fortune through dedication, discipline, resilience, and perseverance.

Johnson emanated from a very poor background where his father chopped and sold timbers and his mother taught school in the Mississippi. Later his parents moved to Illinois in search of a greener pasture. According to Washington Post, Johnson often joke that his parent was not exceptionally poor but he had to push his way to the dinner table “to get his fair share” 

Johnson was a former owner of NBA Bobcats

Undoubtedly, Johnson opened different paths of great achievements for blacks in the United States.  When he purchased the Charlotte Bobcats, Johnson became the first black majority owner of an NBA team. In 2003, he finalized a deal with the city for a $265 million arena that was to open in time for the 2005-2006 season. 

However, in 2010, Jordan sold the majority of the team’s stack to Michael Jordan in a $275 million bid. His action was because of the decline in the company’s valuation and the incessant loss gotten brought by this.

·       Johnson’s first business was a paper route

In 2012, Johnson revealed to CNN that his first business ever was a paper route he engaged in while he was a kid. This also became his first entrepreneur experience, and he learned a lot from the business. 

According to him, it was through this business that he learned to wake up early because the newspapers have to be delivered between 6 and 7 in the morning. Also, the business taught him how to deal with rejection.

The richest black man in the United States

With a net worth of $5 billion, Robert F. Smith is currently the richest black man in the United State. Smith is the founder, chairman, and chief of Vista Equity Partners. 

In 2013, with assets worth $14 billion, Vista Equity Partners emerged as the top private equity firm on the BE100 list.

Smith began his career with STEM where he worked as a computer geek. After which he went to Cornell University and earned a degree in chemical engineering.  Later on, he went to Columbia Business School and upon graduation, he served as a co-chief of the investment banking division at Goldman Sachs. 

In 2000, he founded Vista Equity Partners. The goal of the company is to invest in technological companies.  

In 2013, Vista Equity Partners appeared as the Financial Company of the Year on BE 100s. Added to this, Smith was also named as one of the Most Powerful Blacks on Wall Street. 

The richest black woman in the United States

The richest black woman in the United States is Oprah Winfrey. Winfrey is not only the richest black woman in the United States, but she is also the richest black woman in the world with a net worth of $2.7 billion.