How Five of America’s Old Money Families Lost It All

MoneyWise
By Esther Trattner
Updated March 24th, 2020

Some of the oldest family fortunes were built in the 1800s, during America’s rocky but formative youth. You might have heard of the Rockefellers, who grew wealthy after John D. Rockefeller struck oil, and Levi Strauss, who got rich after inventing blue jeans to meet the demand for tough work pants during the Gold Rush.

America sure was the land of opportunity for enterprising immigrants who were determined to make it big. But a few generations later, some of the greatest family fortunes are gone. What happened is technically called a “reversal of fortune” — or sometimes referred to as “blowing your family’s money at the casino.”

In reality, a variety of factors may contribute to a family’s fortune going up in smoke. The loss can happen in just one generation or stretch out over a century or longer. However, such losses are generally driven by bad decisions, such as overspending and debt, investments that don’t pan out, and family members infighting over the money.

We may not have billions to lose, but we can still learn something from these families’ misfortunes. Here’s how five of the richest American families lost their money — and you may want to take notes.