Princeton Economist Owen Zydar's 'Everywhere Millionaires': Hidden Wealth Among Unassuming Americans

The concept of 'everywhere millionaires', as coined by Princeton economist Owen Zydar, describes highly successful but low-profile private business owners found across American neighborhoods. Unlike public figures such as Jeff Bezos or Kim Kardashian, these individuals quietly accumulate substantial wealth through strategic ownership in unglamorous, essential businesses. Rich Kinder exemplifies this, having built Kinder Morgan, one of North America’s largest pipeline companies, by acquiring undervalued midstream assets from Enron and growing through disciplined acquisitions and efficiency. Kinder began with a $150 million market cap and $150 million in debt; today, he invests $3–$3.5 billion annually in new pipelines.

Zydar explains that wealth is measured as the difference between assets and debts, with five asset types: pension wealth, private business wealth, public business wealth, fixed income, and housing. He emphasizes 'the hidden world of everywhere millionaires': for every public company CEO with at least $10 million net worth, there are a thousand private business owners meeting that threshold. Most millionaires are clustered in sectors like professional services, construction, and finance—areas often overlooked compared to manufacturing or celebrity-driven industries. Notably, dentists collectively generate higher revenue than all U.S. professional sports teams combined.

Scarlet Fu interviews aspiring 'everywhere millionaires' Ray and Dana Cherry, who left corporate jobs to purchase a Bay Area business specializing in food and beverage service solutions. Founded by a couple 28 years prior, the business now serves over 11,000 unique customers. The Cherries chose their acquisition based on consistent profitability, proximity, uniqueness, and potential for growth. Dana was in marketing, Ray in finance; they viewed 'entrepreneurship through acquisition' as a risk-adjusted path to autonomy and leveraging their expertise.

Kinder advises aspiring business owners to thoroughly understand the business, resist the allure of PR, and focus on delivering value. He cautions against investing in ventures beyond one's expertise, likening rash transitions to 'jumping out of a plane without a parachute.' Success, he says, stems from diligence and willingness to 'bend over backwards to serve customers' while providing reliable shareholder returns for nearly 30 years. Kinder recounts skepticism during Kinder Morgan’s founding—his goal to create a billion-dollar company elicited disbelief from industry analysts.

The transcript underscores the prevalence and significance of hidden wealth generated by owner-operators of private businesses. As many such businesses will soon transition due to owner retirements, new entrepreneurs have opportunities to join this quiet cohort, provided they prioritize due diligence and sector familiarity over publicity.