Are they different as clients?
Well, the banks come here, and they bring this sharp chief investment officer who gives a beautiful seminar at the best five-star hotel in town, and he comes with his tie and jacket. The hi-tech guy comes in his flip flops and a T-shirt and says, you know, give me the speech and I’ll go, thank you, I don't need the wine and dine and deep carpet treatment. These fancy mahogany offices with plush carpets and wood paneled lunchrooms just make them lose interest in ten minutes. They are looking for different investment opportunities. Venture capital, club deals, ESG and impact investing are the themes they are interested in.
They don't seem to aspire to joining whatever we used to
call an upper class. Do you think they will have a
different conception of class going forward?
Of course. First of all, class, what is class? WASP’s? What is class - having a summer house upstate? They're not having mansions or their own golf course, that's over. No Florida, Cape Cod and the like. They have toys or trophy investments, of course, but mega-yachts or planes are an exception.
Well, then what do you think about the privileges of the
the newly wealthy? In your book you mentioned the fact that the
wealthy have some responsibility toward
Yes. You know, if we would give away all our money to the poor and the needy then we would have helped a thousand for a day, and then a day later we would have them poor and needy again, and we would join them as well. If it seems that the hi-tech crowd have a skill set to make money, then let them use that skill to be disruptive in the social sphere as well. They can continue to do what they know best and use their money to help and invest in social change and in things which create jobs and survival to the needy. A lot of people are depending on these businesses.
There was this one article about the owners of BMW, the Quandts. Stefan Quandt said people think that I'm sitting on a yacht and enjoying my billions, but I have 45,000 people working in our businesses. This is 45,000 families who are depending on the decisions I make. I have responsibilities to the larger society.
There are many rich people who do a lot of good things and they are good wealthy people. And then there are the ones who are only taking and taking and taking and not giving back. It's the person you have to look at. A good person is a good person, whether poor or rich.
My in-laws were never rich. My father-in-law was a carpenter and a bus driver and my mother-in-law was a worker in a factory. Not a week goes by, that she doesn't give. She goes to her needy neighbors to cook for them, or she brings a half a chicken to another cousin who is sick. She's always giving because she's a giving person. She sees her glass half full. She sees people who have less than her, so she wants to help. And I think that's the thing, that is the philosophy of life.
You feel it is a strong sense of community?
One of the issues of the wealthy certainly seems to be this urge to isolate yourself. But this is new. In the past, business owners were more connected to society and played important roles.
If you go into Zurich, in the old industrial area, there was this famous factory called Escher-Wyss; they produce these massive turbines. There were these huge factories and at the corner of that plot there's a little villa. That was the owner’s house, he lived on the grounds of the factory. He didn't live in the fancy gated neighborhood. He saw when the workers were coming in the morning, and when they clocked out in the evening. He knew everyone's name. He went to birthdays and he congratulated them. He most probably paid very badly, and they had to work 12 hours, seven days a week because that’s how it was 200 years ago. But he lived on the grounds, not in a castle.
The workers were very poor people. But the industrialist recognized the factory workers and rewarded them with his loyalty and he tried to integrate them into a better society and to leverage them up and to help them to become somewhat economically more stable, versus their previous generation. He took responsibility for his workers and their well-being.
So we shouldn't lose that sort of belonging to society, of being an essential part of it, and our children need to know that. How does Churchill say: “We make a living by what we get, but we make a life by what we give.”