For the first time in 25 years, former US President, Donald Trump has tumbled out of the ultra-exclusive Forbes 400 list of America’s richest people.
Trump had been on the list since 1996. He is currently worth $400 million shy of this year’s cutoff, the outlet revealed Tuesday.
According to Forbes, the former president is worth $2.5 billion, after he lost $600 million of his fortune during the COVID-19 pandemic.
Trump, who was ranked 339th last year had his highest ever position at 71st in 2003, the year before he launched his NBC hit series The Apprentice.
But in March 2020, three years after Trump refused to divest from his name-brand real estate holdings, the coronavirus pandemic affected the economy.
Forbes further argued that divesting when he took office in 2017 would have been an opportunity to diversify his assets. it further said even if he divested and paid maximum capital gains tax, investing the rest into wider portfolios like the S&P 500 could have left him 80 percent richer than he is today.
Instead, his narrow wealth portfolio was dealt a blow by the pandemic’s particularly powerful impact on tourism and hospitality, as well as big city real estate prices.
Meanwhile, there were reports that Trump was in talks to sell his Washington, DC hotel. The hotel was a popular spot during the Trump administration for fans of the ex-president, as well as diplomats and lobbyists hoping to curry favor.
But by the time Trump left office, the hotel took a 60 percent revenue hit and was tangling with a $170 million outstanding loan. During the pandemic, its operations were curbed significantly by DC restrictions on bars and restaurants. Hotels were open for people to stay but at one point were barred from holding events and conferences.
Also taking the hit were Trump’s luxury apartment holdings in New York City and other urban centers which also lost value as parts of the city saw rent prices slashed.
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