Eli Broad has a net worth of $8.4 billion dollars.
Introduction
Eli Broad was an American billionaire entrepreneur who was an investor at the time.
Broad was ranked as the 233rd wealthiest person in the world in 2019 by Forbes.
He was known for his commitment to Public Education, to the Arts and the Sciences, and to medical research in the area of cancer.
The main reason for Eli Broad’s fortune is because of his philanthropic donations and charity work.
Early Life
He was the son of Lithuanian immigrant parents who met in New York, and had one sibling. Eli himself grew up in the Bronx, New York.
He studied art at Wayne State University and then moved to New York City to further his career at the New York Studio School.
During college, Broad worked various jobs including selling women’s shoes, selling garbage disposals door-to-door, and operating a drill press machine at Packard Motor where he was a member of the United Autoworkers.
Career
In 1956, Broad and Kaufmann partnered together and decided to build their first homes.
He borrowed $12,500 from his wife’s parents and put up half the capital in their first venture together, building two models homes in the Northeast Detroit suburbs. The other partner wanted to quit.
They could price the homes so that the rent is less than the monthly mortgage. This is the model they named “The Best Kept Secret.” They priced it at $15,000.
The Kaufman & Broad company moved to Los Angeles, California, and has since grown to be one of the largest home builders in the U.S.
He founded KB Home in 1970, when he took over as CEO of KB Industries, a leading paint manufacturing company based in Houston.
In 2001, he sold SunAmerica to the American International Group for $17.8 billion.
The American International Group has a long history of being a big player in the insurance industry.
After SunAmerica, he went on to create the charitable organization, The Sean and Catherine T. Murphy Foundation which focuses on philanthropy, social responsibility and the environment.
Eli Broad is estimated to be worth more than 7.2 billion dollars.
In comparison, the average American household has roughly $45,000 in net worth.
How Did Eli Broad Spend His Money?
Eli Broad is one of the richest people in the world, but he never has any of it. Because he spends his money on real estate, charity work and art.
Eli Broad’s Home
And the family lived there until the old Broad’s death.
The property, which includes a five-bedroom apartment and an additional living space on the ground floor, was put up for sale in February 2020 for $75 million.
Eli Broad’s Charity Work
The Broad Foundation has helped many charities throughout his life.
Eli Broad’s Art Collection
He had been to art college and made some money as an art dealer and he had made a fortune from a deal in which he had bought paintings from the estate of the painter Max Ernst. So the price of this canvas was astronomical.
Art collector and an executive at MCA, Taft Schreiber, became their mentor.
Highlights
In 1982 he formed a foundation to raise money for the construction of Jewish cemeteries in North America, called the Abraham Fund.
Favorite Quotes from Eli Broad
This week, a couple of home builders have declared bankruptcy. The reason? Banks forced them to take out loan after loan, no matter how high their costs were.
It’s a problem that’s bigger than the housing bust. The number of homeowners with adjustable rate mortgages is far higher than the number of sub-prime borrowers. And the more that people pay, the more money banks get – all of which means that fewer people can ever afford homes.
“I’ve found that the smartest people are those who are in science. I have a hard time believing that the smartest people on earth, including me, are living off the fruits of the labor and innovation of someone else. We’re not creating and doing original work that adds to the whole, because we feel like we’re being ripped off.” – David Cohen
In some cases, a paraphrase is more acceptable to the original author than a literal translation would be.
The American people have been fat, dumb and happy for many generations. If they want their children to compete with children in India or China or Korea, they need to give their children a far better education.
The boards of arts institutions tend to be populated with well-meaning supporters of the arts, and often lack any business background or appetite for imposing appropriate discipline.
3 Life Lessons from Eli Broad
As a famous businessman, Broad shares some tips on how to achieve success:
In this video, you can watch in detail how to become successful as a businessperson. Watch it and learn how to become a winner!
1. The Arts
It’s not a question of what one country does, it’s a question of what one nation does.
2. Collections
Collecting is a way to preserve culture, and to do this you have to save your culture.
3. Artists
The artist is not being unreasonable, but he or she believes that this art form can become a new language.
Summary
Broad has donated his fortune to various causes and in recent years has been working to establish a new medical facility in Santa Monica, California.
He started in the business by working at the Bank of America. While there, he helped start the real estate investment business in North America and eventually became the president of SunAmerica, a mortgage company.
A family member said that he was devoted to philanthropic causes and to the church.
They established the Broad Foundations to further entrepreneurship in education, science, and the arts.
Eli Broad is estimated to be worth more than 7.2 billion dollars.
In comparison, the average American household has roughly $45,000 in net worth.