I can‘t really wrap my head around this. For basically every celebrity you can get a net worth online. How accurate are these? What is factored in? How can they know, e.g. if the money earned wasn‘t lost gambling?
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Most high net worth individuals don’t have their money in cash bank accounts and raw cash. This is indeed private information and it’s in the banks’ best interest to keep this private.
The net worth estimation is mostly done from their publicly known assets. For example, Elon Musk’s net worth would mostly be the valuation of the shares of companies he own. Tesla, SpaceX, etc. This is (usually) followed by real estate ownership, as that is probably the second most valuable assets these people will have. Of course, all of these will be offset by the amount they/their companies owe in debt.
They look at how much money they make, how much their stuff is worth, and how much money they have invested.
These figures are not always completely accurate. It can be difficult to know exactly how much money someone has and when it comes to gambling, sometimes they don’t know how much money is lost or won.
Keep in mind that these may be approximate numbers. It is not always 100% correct
Magazines like Forbes *ask* these high net worth individuals what they are worth. Some are truthful, some exaggerate, and some make up a number that only has some relation to reality.
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