The Blubber

Donald Trump has long boasted about his wealth, yet his true net worth remains a topic of debate. With his recent election to a second term as president, his financial status could undergo significant shifts.

Presidential Salary and Business Ventures

As president, Trump will earn an annual salary of $400,000. Meanwhile, his wealth is seeing major growth on paper, largely due to his ownership in the parent company of Truth Social, the social networking platform under Trump Media & Technology Group Corp. The company’s stock price has surged over 100% since January and more than 85% in the past month.

Estimating Trump’s Wealth

Experts have long tried to pinpoint Trump’s exact net worth, but his refusal to release tax returns over the years has made this difficult. What is known is that Trump inherited substantial wealth from his father Fred Trump’s real estate empire, expanded it with significant property investments, and secured lucrative TV licensing deals in the early 2000s.

Despite facing numerous lawsuits and settlements in recent years, Trump remains one of the richest individuals in the world. As of this week:

• Bloomberg’s Billionaire Index places him 479th globally, estimating his fortune at $6.49 billion.
• Forbes estimates his net worth at $8 billion, reflecting a notable increase in recent months.
• The Wall Street Journal suggests his wealth could range between $7.5 billion and $10 billion, including debt, marking a sharp rise since his previous presidential campaigns.

Real estate continues to be the cornerstone of Trump’s fortune, according to Bloomberg.

Trump Media’s Role in His Wealth

Trump’s largest single asset is his 114.75 million shares in Trump Media, according to Jay Ritter, a finance professor at the University of Florida. When markets opened on Wednesday, Ritter valued Trump’s shares at approximately $4.8 billion, though this fluctuates significantly. By midday, the stock price had dropped to $35 per share, reducing the stake’s value to about $4 billion.

However, converting this paper wealth into cash would come with challenges. Ritter explains that selling shares would incur capital gains taxes, given Trump’s zero cost basis. Selling gradually, assuming an average share price of $10, could reduce the after-tax value of the $4 billion stake to just $800 million.

Further complicating matters, Trump Media’s financial health is precarious, with only $3.14 per share in cash equivalents on its balance sheet and annual revenue of just 2 cents per share.

Real Estate Stability

Trump’s real estate holdings, the foundation of his empire, are unlikely to see dramatic changes in value due to his return to the presidency. “The standout feature of his balance sheet is that his largest asset on paper is DJT stock, which is not easily converted into cash,” Ritter said.

Conclusion

Matthew Tuttle, CEO of Tuttle Capital Management, summed it up in an email to Fortune: “The only thing I can share is he just made a small fortune on DJT stock.” Despite significant gains, much of Trump’s wealth remains tied up in assets that are difficult to liquidate, highlighting the complexity of his financial picture as he prepares to step into the Oval Office again.