Donald John Trump mostly known as Donald Trump is an American politician, business tycoon, and media personality who served as the 45th president of the United States of America. Before being elected as the president of the USA, Donald Trump was mostly famous for his diversified business career and personality. Today, I will discuss the rise and falls of Donald Trump’s business career and know whether Donald Trump is a good or bad businessman. Let’s dig into the article.
Here is a comparison between Donald Trump and Paris Hilton that will help us determine whether Trump is a good businessman or not. Paris Hilton only inherited $5 million but her business empire valued more than 1.5 billion dollars. On the other hand, Donald Trump inherited over $200 million but he is worth between 2 and 4 billion dollars. If Donald Trump invested $200 million in a mutual fund, then he would be worth $8.0 billion. So, if you consider the above facts then Donald Trump is not a good businessman.
Jump To A Section
- 1 Personal History Of Donald Trump
- 2 Business Career Of Donald Trump
- 3 List Of Donald Trump’s Most Significant Business Failures
- 4 FAQs About Is Trump A Good Businessman? Business Career Of Donald Trump
Personal History Of Donald Trump
Donald Trump was born on June 14, 1946, in Queens, New York City, the U.S. he is the fourth child of Fred Trump who was an American real estate developer and businessman. Mary Anne MacLeod Trump was the mother of Donald Trump and she was a Scottish-American philanthropist. Donald Trump grew up with older siblings Maryanne, Fred Jr., and Elizabeth, and younger brother Robert in the Jamaica Estates neighborhood of Queens. At the age of 13, he was enrolled in the New York Military Academy, a private boarding school. In 1964, Donald Trump enrolled at Fordham University and transferred to the Wharton School of the University of Pennsylvania after two years. Donald Trump completed graduation in May 1968 with a B.S. in economics from the Wharton School of the University of Pennsylvania. In 1971, Donald Trump became the president of his father Fred Trump’s real estate business and renamed the business “The Trump Organization.” Since then, Donald Trump’s business has been involved in more than 4,000 state and federal legal actions, including six bankruptcies.
Business Career Of Donald Trump
Donald Trump has an expanded business career with lots of successes and failures. He has invested money in various sectors. Below are the details of Donald Trump’s business career.
The Trump Organization owned middle-class rental housing in New York City’s outer boroughs. He uses the Trump Organization as an umbrella brand and this organization was registered as a corporation in 1981. Donald Trump gathered the attraction of people when he launched his family’s first Manhattan venture in 1978. This venture included the renovation of the derelict Commodore Hotel, adjacent to Grand Central Terminal. It was facilitated by a $400 million city property tax abatement arranged by Fred Trump. Later in 1980, Donald Trump renamed the hotel the Grand Hyatt Hotel. In the same year, Donald trump obtained rights to develop Trump Tower, a mixed-use skyscraper in Midtown Manhattan. This tower was Trump’s primary residence until 2019. In 1988, Donald Trump took a loan of $425 million from a consortium of banks to acquire the Plaza Hotel in Manhattan. However, after two years, the hotel filed for bankruptcy protection and finally, in 1995, Trump lost the hotel to Citibank and investors from Singapore and Saudi Arabia.
In 1985, Donald Trump acquired the Mar-a-Lago estate in Palm Beach, Florida, and in 1995, Donald Trump converted the estate into a private club with an initiation fee and annual dues. Moreover, he also used a part of this estate as a private residence. Then, in 2019, Donald Trump declared Mar-a-Lago his primary residence. Donald Trump also invested money in the casino business. In 1984, he opened Harrah’s at Trump Plaza, a hotel and casino in Atlantic City, New Jersey. This project received finance from the Holiday Corporation. In 1986, Donald Trump took the sole control of the casino and paid $70 million to Holiday Corporation. During that time Donald Trump also acquired a partially completed building in Atlantic City from the Hilton Corporation for $320 million. In 1985, the construction of that building was completed and Donald Trump named the building as Trump Castle. In 1988, Donald Trump acquired the third casino in Atlantic City and it was opened in 1990 for $1.1 billion. However, this casino went bankrupt in the following year. The failure of this project resulted in “enormous debt” for Donald Trump therefore he had to give up control of his money-losing airline, Trump Shuttle and sold his mega yacht, the Trump Princess. In 1995, Donald Trump founded Trump Hotels & Casino Resorts (THCR) but it went into successive bankruptcies in 2004, 2009, and 2014. These bankruptcies left Donald Trump with only ten percent ownership and until 2009 He remained chairman of THCR.
Branding And Licensing
The name “Trump” has been licensed for various consumer products and services. The products and services include foodstuffs, apparel, adult learning courses, home furniture, etc. According to “The Washington Post” there are about fifty licensing or management deals involving Trump’s name and these licenses have generated more than $59 million in yearly revenue for the Trump Organization. However, by 2018, only two consumer goods companies continued to license his name.
List Of Donald Trump’s Most Significant Business Failures
1. In 2016 and 2017, Donald Trump paid only $750 in federal taxes as president for those two years. This is because Donald Trump reported $27.6 million in business losses.
2. Between 1985 and 1994, Trump Organization lost $1.17 billion. In 1995, Donald Trump lost more money than any other taxpayer individuals in the USA.
3. The Trump Shuttle lost $125 million within eighteen months of starting the company.
4. It is reported that since 2000, Donald Trump has lost more than $315 million because of the operation of his golf courses.
5. Donald Trump’s Washington hotel was started in 2016 and since then the hotel has lost more than $55 million.
6. The Trump Taj Mahal casino in Atlantic City was bankrupted twice since Donald Trump took over the ownership of the hotel. He had spent $1.2 billion to build the Trump Taj Mahal casino but he then sold the casino for only $50 million in 2017.
7. Throughout his career, Donald Trump has bankrupted his companies six times.
8. According to a report, Donald Trump is personally liable for $421 million in loans and most of these loans are due within four years.
9. Because of the COVID-19 pandemic; Donald Trump’s office buildings, hotels, and resorts have decreased by $600 million.
FAQs About Is Trump A Good Businessman? Business Career Of Donald Trump
How Did Donald Trump Make His Money?
What Is Donald Trump’s Net Worth?
According to Forbes, Donald Trump’s net worth is about 2.5 billion USD in 2021.
What Is Donald Trump’s Position In The World As The Richest Person?
According to Forbes, Donald Trump ranked 339th on the list of the richest person in the world. His net worth is about $2.5 billion.
What Are Donald Trump’s Loans And Mortgages In 2021?
According to Business Insider, Donald Trump’s loans and mortgages in 2021 are hundreds of millions of dollars.
Was Donald Trump The Oldest President Of The USA?
When Donald Trump was elected as the president of the USA, he was the oldest president of the USA. However, current president Joe Biden is the oldest president now. He took the presidential oath of office two months after turning 78.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.