No Wonder He Is So Rich!

Ikea's Founder Still Takes The Subway

Published on April 20, 2004 By Larry Kuperman In Current Events

This is a wonderful article that put a smile on my face.

Ikea is the largest chain of furniture stores in the world, with annual sales of over $12 billion. But the founder, Ingvar Kamprad, who may be the richest man in the world or only number 13 (whats a couple of billion dollars between friends?) is also among the world's most........well, frugal is the second word that came to mind.

Kamprad founded Ikea in 1943 when he was only 17 and, despite being forced to officially retire, he remains active in the company. He flies coach, takes the subway, drives a 10-year old Volvo. He is notorious for his penny-pinching. He does however say that he is changing. "I seldom wash disposable plastic glasses anymore."

Read the article!

Comments

JillUser

on Apr 20, 2004

Sounds like my Uncle. He puts his name on a styrofoam cup for coffee. He could buy and sell a lot of people I know, has a house in a prime location over looking Lake Charlevoix and has real estate all over the place but worries over the little stuff. I guess it is like they say, "you don't get rich by writing checks"

Sherye Hanson

on Apr 20, 2004

Sounds like a Swede to me.

crazy lady

on Apr 20, 2004

I think it's wonderful!
I think that if I were to.....win the lottery....I would penny pinch. I do it now. I love to be frugal, it's like a game!
I would, of course, buy things like a new car and buy a nice castle.....I mean house! Then start saving from there!
Yeah right! I'd probably blow it in a couple of months! LOL

Nice thought though.

Sir Peter Maxwell

on Apr 20, 2004

I can testify that operating a large corporation breeds a certain type of thrift. However, occassionally tension will build and explode in a great fury of spending madness. Sometimes I will buy a company in the morning, sack all the peasants in the afternoon, and then sell it in the evening!

Corio

on Apr 20, 2004

Yeah - it's a scandinavian thing...

Lunaticus Minimus

on Apr 20, 2004

Rich people don't stay rich by spending it all

Abe cubbage

on Apr 21, 2004

He is an example everyone should folllow.

jelvis

on Apr 21, 2004

Actually the penny pinching is central to the IKEA culture. Ingvar is very careful to propagate the image of being very careful with spending money. People from the area of Sweden (Småland) where Ingvar comes from, are proud to be cheap and penny pinching.. So he's just keeping up with the tradition. I have worked for IKEA (as a consultant) for three years and I can personally vouch for the penny pinching mentality.

I've seen him in Älmhult (the IKEA home town, with a resident population of 6000, if I recall correctly) and you would never think that he has more money than the ordinary joe. Probably less if you judge from appearances .

However, it is very hard to put a price on IKEA as it is not a public company.

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