In 1995, Jeff Bezos decided quit your stable job and well paid as an analyst on Wall Street to set up a business selling books online. At that time, Jeff Bezos was not the millionaire he is today, so he went to his parents and asked them for help investing in Amazon. His father’s first question was clear and direct: “What is the Internet?”
Miguel and Jacklyn Bezos didn’t know much about this new technology, but they knew that their son was determined to make the most of it. According to the writer Brad Stone in the book “The dream store. Jeff Bezos and the era of Amazon“, Bezos warned his parents: “There is a 70% chance you will lose everything. “I just want to make sure I can come home for Thanksgiving if this doesn’t work out.”
Without hesitation, the Bezos invested a good part of their life savings in their son’s project. Today, that initial investment has grown by 15,500% and is worth more than the GDP of Iceland and the Maldives combined, making his father so rich (his mother passed away a few weeks ago) that, according to what he said The Wall Street JournalMiguel Bezos is hiring a CEO to manage the assets of his Family Office.
The origin of a historic fortune
In the mid-nineties, Mike Bezos, of Cuban origin and with family ties in a small Valladolid municipalitydecided to entrust the family savings to his son Jeff and, in the process, becoming the first investors after the founding of Amazon.
According to documents According to the US Securities and Exchange Commission (SEC), the Bezoses’ initial investment was through the purchase of 582,528 Amazon shares and, just a few months later, they expanded their investment by purchasing 847,716 more shares. In total, 1,430,244 shares at a purchase price of 17 cents per share. That leaves a total investment of $243,141.48. As and as revealed Bloombergit is quite a fortune for a couple formed by a single mother who had to raise her son alone with a very poor salary while studying a career, and of a Cuban immigrant who arrived in the United States at the age of 16.
After thirty years, if the initial investment had remained intact it would amount to about $72.6 billion. However, after various sales and donations of shares, the family wealth of Jeff Bezos’ parents exceeds $40 billion.
CEO wanted for a fortune
According to estimates by The Wall Street Journal and Bloomberg, Aurora Borealisthe company in charge of managing Miguel Bezos’s assets, was founded in 2020 and, if it were a person, it would rank 48th among the largest fortunes in the world. list of Forbes millionaires. Aurora Borealis is currently one of the family offices most relevant in the world due to its volume of assets.
The company manages assets of a very diverse nature, from those founding shares of Amazon to investments in funds and philanthropy projects through the Bezos Family Foundation.
The growing assets of Jeff Bezos’ father have reached levels that have made it necessary to professionalize the team that manages it from Aurora Borealis, signing as CEO to Valeria Alberola, an executive with experience in managing large assets. For reference, the new manager of Amazon’s founding fortune managed the family office of the Walton familyfounders and owners of the Wallmart supermarket chain. Their goal, to make Miguel “Mike” Bezos even richer.
The story of Miguel Bezos’s fortune is not only relevant for having facilitated the founding of one of the largest companies in the world, it is also a unique phenomenon since it is unusual for a family loan of just under $244,000 to end up making the founder’s parents millionaires, and not external investors. Was a risky bet which turned out well, but could also have left Jeff Bezos banished from Thanksgiving dinners and his parents with a serious financial problem.
Image | Flickr (George W. Bush Presidential Center)
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