The Rockefeller Family Wealth: A Case Study

Introduction

• Wealth is often lost in three generations, as seen in various proverbs across cultures:
  • U.S.: "Shirt sleeves to shirt sleeves in three generations."
  • Japan: "Rice patties to rice patties in three generations."
• The Rockefeller family is a notable exception, maintaining wealth over generations.
• Forbes estimated the Rockefeller family fortune at $11 billion in 2016.

Historical Context

• John D. Rockefeller founded Standard Oil Company in the late 19th century.
• He became the first American billionaire over a century ago.
• Despite scandals and challenges that typically affect wealthy families, the Rockefellers have maintained unity.

Key Elements of Rockefeller Success

1. Regular Family Gatherings

• The family conducts biannual gatherings.
• Over 100 members meet for events like Christmas.
• Family forums discuss future plans and significant life events.

2. Maintaining Family History

• Family homesteads serve as connection points to past generations.
• Members can visit places where ancestors lived to understand their heritage.

3. Absence of a Central Family Business

• The 1911 antitrust breakup of Standard Oil dissolved the family business.
• This avoided conflicts common in families with shared business interests.
• Wealth was instead managed through trusts and investments.

4. Strong Family Values, Especially Philanthropy

• Philanthropy is central to the Rockefeller identity.
• The family has significant endowments in multiple foundations.
• Members are encouraged to participate in charitable activities.
• David Rockefeller Jr. highlighted the importance of giving from an early age.

Legacy and Impact

• John D. Rockefeller and his son, John Jr., were prominent philanthropists.
• They contributed over $1 billion and founded the University of Chicago.
• David Rockefeller, the last living grandson, designated most of his wealth to charity.
• Today, the fortune is divided among 70+ heirs.

Conclusion

• The Rockefeller family's system of values, traditions, and strategic absence of a central business has contributed to their enduring wealth.
• Their model provides insights for other families aiming to preserve wealth across generations.