In the first few months of 2020, many companies have suffered heavy losses, and many people’s income has fallen sharply. Risks often coexist with opportunities. If someone loses, someone gains. In April, the Institute for Policy Studies, an American research institution, announced the income ranking of the rich in 2020, citing the wealthy individuals whose wealth increased sharply during the epidemic. Among them is a name that fans, especially gun fans, are familiar with-Kroenke. Everyone knows that Kroenke is a tycoon in the sports industry. It stands to reason that during the epidemic, various sports events were suspended, and Kroenke's wealth should have shrunk. Why did he make money instead?
Before answering why Kroenke's wealth grew during the epidemic, it is necessary to briefly understand the rich American man.
Kroenke was born in a small town in Missouri in the United States in 1947. He started to manage the company's accounts for his father when he was ten years old. This is why after entering Arsenal, Kroenke did not do much in the transfer market, so that he left the impression of "stingy" to the outside world. It is the so-called "hourly accounting, big time must be picked."
Kroenke established his first company in 1983-Kroenke Group, which is a real estate development company. More than ten years later, he began to get involved in the sports industry. Why get involved in the sports industry? One of the important reasons is that Kroenke himself is a sports enthusiast. He has liked baseball, basketball and other sports since he was a child. In the high school basketball team, Kroenke played the forward position and scored 33 points in a game. This record has been maintained in the school for more than ten years.
For Kroenke, love and business are clearly distinguished, and he will not decisively throw money at his sports clubs just because he loves sports. After joining Arsenal for these years, Kroenke has been reluctant to inject funds into the club. In the previous nine seasons of transfers, three of them were actually profitable from the transfer. Recently, Kroenke’s football team, the Los Angeles Rams, is also preparing to borrow money from the NFL to repair the stadium, instead of Kroenke taking the money directly.
对于克伦克（Kroenke）来说，爱与商业是有明显区别的，他不会因为喜欢运动而果断地向体育俱乐部投钱。在加入阿森纳这些年之后，克伦克一直不愿向俱乐部注入资金。在过去的九个转帐季节中，其中三个实际上从转帐中获利。最近，克伦克（Kroenke）的橄榄球队洛杉矶公羊队（Los Angeles Rams）也准备从美国国家橄榄球联盟（NFL）借钱修理体育场，而不是克伦克直接拿走钱。
After decades of careful management, Kroenke has a huge industry group. On the Forbes wealth rankings, its real-time wealth has reached 10 billion US dollars, ranking 135th.
Kroenke's industries mainly involve real estate development, sports industry and farm management. In terms of real estate development, Kroenke has nearly 3 million square meters of real estate, mainly commercial real estate related to shopping centers. The sports industry involves club operations, stadium operations, and sports media operations. Kroenke is also one of the largest farmers in the United States, with nearly 900,000 acres of land.
In terms of club operations, in addition to the familiar Arsenal, Kroenke also has teams such as the Los Angeles Rams (football), Colorado Riptides (football), Colorado Avalanche (ice hockey) and Denver Nuggets (basketball). widely.
The industries that Kroenke is involved in are all industries that will be affected by the epidemic. Why has its wealth increased? This is related to its income structure. In addition to his own properties, he also owns shares in other companies, one of which is Wal-Mart.
Kroenke's old father-in-law is Wal-Mart's co-founder Bud Walton (the other founder is Sam Walton, the two are brothers). After the old husband's death, Kroenke got a share of Wal-Mart's stock. These stocks were valued at approximately $4.8 billion in 2015. In 2015, the market value of Wal-Mart was around US$240 billion, and Kroenke’s stake in Wal-Mart was estimated to be approximately 2%.
克伦克（Kroenke）的老岳母是沃尔玛（Wal-Mart）的联合创始人巴德·沃尔顿（Bud Walton）（另一位创始人是山姆·沃尔顿（Sam Walton），两人是兄弟）。丈夫去世后，克伦克获得了沃尔玛的股票。这些股票在2015年的价值约为48亿美元。2015年，沃尔玛的市值约为2400亿美元，克伦克在沃尔玛的股份估计约为2％。
The analysis deadline for the Institute for Policy Studies report is April 23, 2020. On that day, the Wal-Mart stock market closed at $128.53, and the Wal-Mart stock market closed at 118.94 on January 2, 2020. The total share capital of Wal-Mart is 2.834 billion shares. Based on this estimate, Wal-Mart’s market value increased by approximately US$27.2 billion during this period. Kroenke accounted for 2%, an increase of about 543.5 million US dollars. The announced personal wealth added value was US$400 million, which means that Kroenke lost at least US$143.5 million in other industries. (It is worth noting that Wal-Mart's stock price has recently begun to fall again, but it is still significantly higher than the stock price at the beginning of the year).
Then why did Wal-Mart's stock price rise during the epidemic? On the one hand, due to the panic buying, Wal-Mart’s offline product sales were better than in the past. On the other hand, during the quarantine period, Wal-Mart’s online sales of daily necessities increased significantly. Finally, due to the disruption of the supply chain and the reduction in the frequency of consumers going out. Some small stores are unsustainable, and Wal-Mart faces less competition. Therefore, under the influence of various favorable factors, it is reasonable that Wal-Mart's stock price will not fall but increase during the epidemic.
In the face of all kinds of news, most people just take it as a pastime for reading. In fact, if we think deeply, we can get some enlightenment from these news. The same goes for Kroenke's rising net worth.
There is a popular saying in the investment community: "Don't put eggs in the same basket." What this means is that when investing, don't put all your capital into one thing or one company, but make diversified portfolio investments to diversify risks. The same applies to individuals, that is, income should be structured, and personal income should not be placed on one source. The increase in wealth during the Kroenke epidemic was due to the structure of income: personal properties and stocks. His personal industry has been affected by the epidemic, but his stocks have ushered in opportunities in the epidemic.
For ordinary people, income structure is more important. During the epidemic, many people were unemployed. Most people lose their source of income as soon as they lose their jobs, leading to a series of personal financial crises, such as not being able to repay their mortgages and car loans; a small number of people are unemployed, but their income has declined to a certain extent, but there are still other sources of income. The latter is because of the realization of income structure. Of course, this is just a simple point. How to achieve income structuring requires real effort from individuals, and the process often varies from person to person and is not highly reproducible.