Old vs. New Money: Aron Moldovanyi on How Billionaires' Wealth and Spending Have Evolved

Photo courtesy of Aron Moldovanyi

Written by Luna David

The world of billionaires has seen a significant transformation over the centuries. As wealth generation evolves, the lifestyle and spending habits of those who possess it also evolve. 

But what is old money and new money, and what are the main differences between the generations of Mayer Amschel Rothschild and Elon Musk?

Aron Moldovanyi, a Hungarian-Canadian to ultra-high-net-worth individuals (UHNW) known as the “Billionaire’s Genie,” sheds light on the two concepts. The Billionaire's Family office executive gives a glimpse of their differences based on how they express their values, control their engagement, and make a societal impact. 

Heritage and Values

Moldovanyi explains that “old money” refers to families that have maintained their wealth over several generations, whereas “new money” describes individuals who have amassed their fortunes more recently, often in innovative ways.

Families that have established their wealth decades, if not centuries, ago often come from old-money billionaires. Think of John D. Rockefeller, the American oil magnate Andrew Carnegie, who made his fortune in the steel industry, or Henry Ford, who founded Ford Motor Company in 1903. 

Molodvanyi points out that these families typically value tradition, discretion, and a quiet display of wealth. They often direct their spending toward maintaining and enhancing their status within the high echelons of society through philanthropy, art collection, and sustaining heritage properties. 

For instance, Andrew Carnegie became a notable philanthropist of his time, giving away most of his wealth. Old-world charm, including membership in exclusive clubs, private education, and generational businesses characterises their lifestyles.

In contrast, new money billionaires frequently derive from the tech industry, finance, or entrepreneurial ventures, achieving immense wealth within their own lifetimes. They tend to favour innovation and are often seen as trendsetters. 

According to Moldovanyi, their spending habits are more visible and usually include lavish purchases such as luxury cars, state-of-the-art homes, and extravagant vacations. They are also more likely to invest in pioneering technologies, startups, and philanthropic causes that address global challenges like climate change and social inequality.

Visibility and Social Engagement

There’s a distinct difference in how old and new money billionaires engage with the public and media. Old money maintains a low profile, their lives shrouded in privacy and exclusivity. They are less likely to appear in the media unless it’s for controlled charity events or significant social gatherings.

New money billionaires, however, often utilise media and public platforms to enhance their visibility. Moldovanyi explains how figures like Elon Musk and Mark Zuckerberg are frequently in the spotlight for their business achievements and their active social media presence. They do not merely use this visibility for fame but also a strategic tool for their business ventures and personal brands.

Investment and Economic Impact

Investment strategies also differ significantly between the two groups. Old money is more likely to invest in land, blue-chip stocks, and other traditional assets that promise steady, long-term returns. These investments reflect their preference for stability and preservation of capital for future generations.

On the other hand, new money billionaires are more inclined toward high-risk, high-return investments. They are critical players in venture capital, investing in tech startups, renewable energy, and biotechnology. These areas have the potential for substantial financial returns, allowing them to impact the sectors they are passionate about, driving innovation and societal progress.

Different Eras, Same Impact

The comparison between Mayer Amschel Rothschild and Elon Musk illuminates the evolution of wealth creation, management, and influence over nearly three centuries. Rothschild's era demanded careful navigation of aristocratic and financial networks, while Musk's time thrived on innovation, public engagement, and visionary goals for humanity's future.

For Aron Moldovanyi, however, both figures share a foundational characteristic: their work and vision profoundly impacted the world's financial and technological innovations.

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