The One Luxury These Billionaires Say They Can’t Live Without

Summary of Forbes Video: The One Luxury Billionaires Can't Live Without

Key Concepts: Private jets, time efficiency, business tool, luxury, depreciation, COVID-19 pandemic impact on jet prices, global connectivity, personal relationships.

1. Main Topic: Essential Luxury for Billionaires

The video explores the one luxury that billionaires consider indispensable. Forbes surveyed billionaires to determine their most valued indulgence. The most common answer was a private jet, followed by phones, prestige cars, second homes, air conditioning, and personal relationships.

2. Private Jets: The Dominant Choice

• Prevalence: Twelve out of 40 surveyed billionaires cited private jets as their essential luxury.
• Time Efficiency: The primary reason for valuing private jets is time savings. Commercial travel involves significant time spent on airport procedures (security, boarding, taxiing), whereas private jets offer immediate departure.
• Accessibility: Private jets provide access to a wider range of airports. Texas, for example, has 389 public use airports, but only 25 (6%) are commercial airports.
• Business Necessity: Billionaires with geographically diverse business interests rely on private jets to efficiently manage their operations. David Hoffman, who invests in businesses across the US, stated, "We have a large number of locations and it would be impossible to get to them without a private plane."
• Global Connectivity: Samir Mane, Albania's first billionaire, uses a private jet to visit his retail outlets in Sievo, a trip that would take a full day commercially but only 20 minutes by private jet. He notes that if he were based in a city with excellent flight connections like London, Frankfurt, or Vienna, he wouldn't need a jet.
• Business Tool vs. Luxury: Larry Connor, a real estate investor, considers his private plane "not a luxury, it's a business tool."
• Operational Efficiency: Hugh Chatham, VP of sales at CFS Jets, explains that many companies would struggle to operate without executives being able to attend multiple meetings across the country in a single day.

3. Other Notable Luxuries

• Personal Relationships: Charles Ko, chairman of Ko Inc. (net worth $67.5 billion), cited "Liz for 57 years."
• Recreation: Steven Smith, founder of Canada's First National Financial (net worth $6 billion), said "Hella skiing."
• Privacy: One anonymous respondent simply wrote "Privacy."

4. Private Jet Market Dynamics

• Depreciation: Planes typically depreciate 5-10% annually.
• COVID-19 Impact: Pre-owned jet prices doubled during the COVID-19 pandemic and have remained high.
• Price Range: Pre-owned jets range from $1 million for a small, basic craft to $75 million for top-tier models like Bombardier's Global 7500. New business jets can cost up to $80 million, with some billionaires purchasing commercial-sized airliners at even higher prices.

5. Example: Bombardier Global 7500

• Features: Long-range jet capable of non-stop global flights, featuring a four-zone cabin for work, eating, sleeping, and lounging.
• Ownership: Billionaire brothers Lorenzo and Frank Farida each own a Global 7500, purchased in 2020 and now valued at $55 million apiece (estimated by Jatham).

6. Conclusion

The video highlights that while billionaires can afford almost any luxury, a private jet is often viewed as an essential tool for maximizing time efficiency, accessing remote locations, and managing global business operations. While other luxuries like personal relationships, recreation, and privacy are also valued, the private jet stands out as a practical necessity for many billionaires. The COVID-19 pandemic has further solidified the value of private jets, leading to increased prices in the pre-owned market.