The Surprising Reason Steve Jobs’ Net Worth Was Only $10 Billion

Steve Jobs co-founded Apple, one of history’s most valuable companies. His net worth at death was approximately $10.2 billion. That figure is surprisingly modest for such a legendary tech visionary. The reason involves a drastic decision he made decades earlier.

He sold almost all of his Apple stock in 1985. This move separated his wealth from the company’s future astronomical growth. Most of his fortune later came from a different investment entirely.

The 1985 Apple Exit and Stock Sale

Jobs owned about 20% of Apple in its early years. Internal conflicts led to his departure from the company in 1985. He was not fired but resigned from his role.

Angry and frustrated, Jobs sold his shares soon after leaving. He sold all but one single share of his Apple stock. Reports indicate he netted around $100 million after taxes from the sale.

This decision was financially catastrophic in hindsight. Had he kept that stake, it would be worth hundreds of billions today. Apple’s stock value soared in the following decades without him.

Building Wealth Through Pixar and Disney

Jobs invested a portion of his Apple proceeds into a new venture. He purchased The Graphics Group from George Lucas in 1986. That company was later renamed Pixar Animation Studios.

Pixar’s value exploded after the success of “Toy Story” in 1995. The company’s IPO instantly made Jobs a billionaire. His stake was worth over $1 billion on the first day of public trading.

Pixar was acquired by The Walt Disney Company in 2006. The all-stock deal was valued at $7.4 billion. This transaction gave Jobs a massive stake in Disney, not Apple.

The Final Composition of His Fortune

At the time of his death in 2011, Jobs’ wealth was largely in Disney stock. His Disney shares were valued at approximately $8 billion. His relatively small, reacquired Apple stake was worth about $2 billion.

Therefore, most of his net worth was tied to Disney’s performance. His early sale prevented him from owning a colossal portion of Apple. This explains the perceived disparity between his impact and his wealth.

Steve Jobs’ net worth reflects a pivotal, emotional decision made in 1985. His legacy as a innovator is immeasurable, but his financial story is a complex tale of what might have been.

Info at your fingertips

How much would Steve Jobs be worth if he never sold his Apple stock?

His original 20% stake would be worth roughly $680 billion today. This would make him the wealthiest person in the world by a significant margin.

Who was Apple’s third, forgotten co-founder?

Ronald Wayne was Apple’s third co-founder. He sold his 10% stake for $800 just days after the company started, missing out on future growth.

Where did the majority of Steve Jobs’ wealth come from?

The majority came from the sale of Pixar to Disney, not Apple. His Disney stock constituted most of his $10 billion net worth.

Did Steve Jobs own Apple stock when he died?

Yes, but he owned a relatively small amount. He held 5.5 million shares, a fraction of what he originally owned in the 1980s.

What did Steve Jobs do after leaving Apple in 1985?

He founded NeXT Computer and purchased the company that became Pixar. Apple later acquired NeXT, which brought Jobs back to the company.