Fidelity Owners Keep Getting Richer Regardless if Investors Make Money Or Not

The second richest person in Boston

Massachusetts has played a significant role in U.S. history.

Four presidents were born in the state, and eight presidents graduated from Harvard. In addition, many noteworthy businesses started in Massachusetts, including Dunkin’ Donuts, New Balance, Sam Adams, Boston Beer, Fidelity, and many more.

Edward C. Johnson II started Fidelity, and his son Edward Johnson III grew it to become a mutual fund powerhouse.

Today, Johnson III’s net worth exceeds $11.5 billion, making him the second richest person in Boston behind his daughter, Abigail Johnson, whose net worth exceeds $25.2 billion.

Who is Edward Johnson III?

Edward Johnson III is a billionaire investor and business executive who owns Fidelity Investments and Fidelity International.

Edward Johnson III was born on June 29, 1930. He attended Milton Academy, which historically has been an unofficial feeder school for Harvard University. In 1954, Edward Johnson III graduated from Harvard University with a bachelor’s degree. After college, he served in the military and joined Fidelity Investments in 1957.

Johnson II focused on common stocks.

His father, Edward C. Johnson II, took over management of the Fidelity Fund in 1946 and built a new company, Fidelity Management and Research. Johnson II wanted to focus on stocks that are traded heavily. With this simple strategy, he created a $3.5 billion financial enterprise.

So, when Edward Johnson III joined Fidelity Management as a research analyst, he invested in using computers to serve Fidelity Management’s customers better. Johnson III was a pioneer in selling discount brokerage services to banks, consumers, and insurance companies.

Johnson III transformed Fidelity Management and Research.

In 1977, Edward C. Johnson III became chairman and chief executive officer of Fidelity Management and Research. He served in that capacity for 40 years. During that time, he was able to turn a small company into a mutual fund powerhouse.

Johnson III retired in 2016 and was succeeded by his daughter Abigail Johnson.

Fidelity by the numbers.

To understand the success of Edward C. Johnson III, consider the following:

1. The company has 40 million individual investors.
2. It controls $11.8 trillion in managed assets.
3. It also manages 4.5 trillion of other Fidelity investment products, such as mutual funds and managed accounts.
4. The platform executes on average 2.8 million trades.

Edward C. Johnson III’s philanthropy

Edward C. Johnson III donates a lot of money to different medical centers and hospitals around Boston, New York, California, and the Midwest.

The family has given smaller grants to many historic preservation and conservation societies. They have also helped sponsor several programs on conservation education. The biggest of this kind of gift has been to the Bermuda Underwater Exploration Institute, which has received just over $3 million.

If you had the family money, what causes would you support?

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