Summary
Highlights
Germany has more billionaires than any other European country, yet more Germans are living below the poverty line. The media frequently reports on high income inequality and low social mobility, but little is known about the super-rich. Wealthy Germans often prefer to remain inconspicuous, avoiding public attention to prevent envy and maintain privacy.
An exclusive annual event, the Hall of Fame for manager magazin, brings together many of Germany's wealthiest business owners at the Schloss Hotel Kronberg. Attendees, primarily male, collectively hold billions of euros. This event offers a rare glimpse into the world of the super-rich, though their true lives often remain out of public view.
Manager magazin, based in Hamburg, meticulously compiles an annual list of Germany's 1001 richest people, using a model similar to Forbes. This painstaking work involves identifying individuals with assets upwards of 100 million euros, primarily company owners and heirs, as managers rarely reach the highest echelons of wealth in Germany.
The super-rich in Germany often prefer to remain hidden, avoiding publicity to prevent envy and potential threats like kidnapping. Many fear negative public perception, and some fortunes are even linked to controversial historical periods. Michael Otto, one of Germany's richest, explains that wealth in Germany often carries a 'bitter aftertaste' unlike in the US, where achievement and wealth are celebrated.
Dirk Rossmann, who grew up with humble beginnings, founded Germany's first self-service drugstore in 1972. He built his empire from scratch, becoming a multi-billionaire. Rossmann initially sought publicity for his company but later recognized his own desire for recognition. His company, Rossmann, is now Europe's most profitable drugstore chain, employing over 56,000 people and diversifying into other business areas.
The list of Germany's richest disproportionately features owners of medium-sized businesses and 'old money' families, unlike the US, where new tech billionaires dominate. German wealth is often discreet, with few outwardly flaunting their riches. While the fortunes of the wealthy have exploded since the financial crisis, those with average incomes have faced losses, raising concerns about social inequality.
Michael Otto argues that 'the rich are getting richer' is both true and false, as millions of Germans are accumulating wealth. He believes wealthy individuals also contribute to society and create jobs. Christian von Bechtolsheim, a wealth manager, acknowledges the rise in wealth but emphasizes the importance of preventing social conflicts by ensuring the gap between rich and poor doesn't become too wide.
Family offices like 4com manage and increase the assets of very wealthy families, typically those with upward of 30 million euros. These clients include former or current company owners and families with long-standing wealth. Succession planning is a critical service, as maintaining large fortunes across generations faces challenges from inheritance disputes, expropriation, and mismanagement.
Reiner Schaller, founder of McFIT, Europe's largest fitness studio chain, built his wealth from humble beginnings. Starting with no financing, he achieved his goal of becoming number one in Europe within ten years. He believes success requires an 'alpha animal' mindset and that those who've fought their way to the top have an easier time maintaining success than those who inherit it.
Succession is a major topic among Germany's rich. Michael Otto's children opted against direct succession, a choice he supported, emphasizing the importance of not forcing children into roles. Dirk Rossmann's son, Raoul, will take over the drugstore chain, after being shown by his father that the business isn't just about making money but also about social responsibility. Managing inherited wealth presents unique challenges compared to founding a business.
Christian von Bechtolsheim highlights the difficulties in preserving family fortunes across generations due to inheritance divisions, disputes, expropriation, and economic downturns. His own family history, spanning 900 years, includes periods of near bankruptcy and significant losses, demonstrating the fragility of inherited wealth despite long lineage. He humorously notes his own complex, aristocratic name and his comfortable, rather than 'rich,' status.
The super-wealthy maintain extensive networks through typical upper-class hobbies like horse racing, hockey, and primarily, football boxes, which act as a marketplace for mingling and business. Reiner Schaller and Dirk Rossmann both leverage these networks. Regarding political influence, wealthy business owners exert power through the number of employees their companies provide, rather than direct calls to politicians, as this can threaten job markets and regional economies.
Wealth rankings, like those published by manager magazin, are largely considered entertainment by many wealthy individuals. Dirk Rossmann despises them, believing they create a 'Scrooge McDuck' image, while Reiner Schaller feels proud to be ranked. The German constitution states that property entails obligations to the public good. Michael Otto, a major donor to environmental, cultural, and social causes, believes in giving back to society.
Wealthy individuals often prefer to personally decide how to contribute to society rather than through higher taxes. While they donate millions, they generally oppose proposals for wealth redistribution through increased taxation. Christian von Bechtolsheim views a 'rich tax' as dangerous, arguing it stigmatizes wealth and would harm the backbone of the German economy: medium-sized businesses, which are often owned by these wealthy individuals.
Despite growing fortunes for the rich and concurrent struggles for many, the world of Germany's wealthiest remains largely inaccessible and discreet. They prefer to operate under the radar, away from public scrutiny, maintaining their privacy even as their wealth significantly impacts the nation's economic landscape. The documentary concludes with the observation that the richest Germans hold a quarter of the country's assets, while a quarter of adults have no wealth or are in debt.