JPMORGAN, one of the wealthiest men (1837-1913)— wow almost 200 years ago?

John Pierpont Morgan— a funny thought:

What could he have bought or purchased for hedonic pleasure or whatever which would still have lasted until today?

Inherited wealth from father Junius Spencer Morgan —

J.P. Morgan did not inherit a large fortune directly from his father, Junius Spencer Morgan, but he did inherit a well-established banking network, valuable connections, and a solid financial reputation. His father’s wealth and standing in the banking industry gave J.P. Morgan a significant advantage in his career.

Junius Spencer Morgan, who was also a prominent banker, had built a successful business in Europe, particularly in London, where he worked with the firm George Peabody & Co. After Peabody retired, the firm became J.S. Morgan & Co., which helped establish the family’s financial prominence. Junius left a sizable estate to his son, estimated to be around $12 million upon his death in 1890. However, J.P. Morgan’s true fortune was not primarily due to this inheritance but rather from his own business dealings and financial acumen.

J.P. Morgan significantly expanded his wealth through his role in creating and managing large corporations like U.S. Steel, General Electric, and through his work in reorganizing railroads and other major industries. His legacy was built on the foundation his father provided, but J.P. Morgan’s success was largely self-made.

$12M in 1890, what’s worth in 2024 with inflation roughly

The $12 million inherited by J.P. Morgan in 1890 would be roughly equivalent to around $511 million in 2024, adjusting for inflation.

Inflation

from datetime import datetime
from numpy import log, exp

Function to calculate the value of money in the future given an inflation rate

def inflation_adjusted_value(start_value, start_year, end_year, average_inflation_rate=0.028): # Default inflation rate is 2.8% (historical average)
years = end_year – start_year
future_value = start_value * exp(years * average_inflation_rate)
return future_value

Variables

start_value = 12000000 # $12M in 1890
start_year = 1890
end_year = 2024

Calculate the future value

adjusted_value = inflation_adjusted_value(start_value, start_year, end_year)
adjusted_value