Tycoons typically come from prominent industries and, in the past, dominated steel, railroad, and production. Today, the term “tycoon” is often used to refer to someone who runs a tech or internet company.
Definition and Example of a Tycoon
A tycoon is a business leader, entrepreneur, or individual who has built substantial wealth and power through their business dealings. The term was adapted from the Japanese word “taikun,” which was used to describe the shogun. Initially, the term “tycoon” was used to describe individuals who dominated the steel, oil, and railway industries. For example, Cornelius Vanderbilt is sometimes considered the first American tycoon because he founded the New York Central Railroad. At Vanderbilt’s death in 1877, it was said his estate was worth $100 million—a sum of money that was unheard of at that time. He left the bulk of his estate to his son, who continued to build the Vanderbilt family fortune.
How Tycoons Works
A tycoon is a business owner or entrepreneur who has built massive wealth and influence through their business dealings. The term became particularly popular during the 19th century as owners of companies that helped usher in the Second Industrial Revolution became wealthier. Two types of tycoons emerged during this time: the robber barons and the captains of industry. “Robber baron” was a term used to describe business people who engaged in unethical behavior. Captains of industry, on the other hand, were often seen as tycoons who used their great wealth to benefit society. One of the hallmarks of a tycoon is their ability to influence public opinion and in some cases, the U.S. economy. For instance, Tesla CEO Elon Musk recently stated that he wouldn’t sell his cryptocurrencies, including Dogecoin, in a social media thread. Dogecoin, which had previously been falling in value, saw its stock price jump 7%.
Types of Tycoons
Tycoons are characterized by their wealth, influence, and prominence in American society. But there’s no one way to become a tycoon—modern tycoons come from various industries.
Tech Tycoons
Later, Bezos expanded his wealth by investing in real estate, media, and transportation. Currently, Bezos is investing money in his space exploration company, Blue Origin.
Media Tycoons
A media tycoon is a successful entrepreneur or business owner who controls any media consumed by a large number of individuals. Initially, media moguls owned and controlled newspapers and radio networks. Later, the term was often used to describe individuals who worked in television and film. Today, it can also describe social media creators and founders. Oprah Winfrey is an example of a media tycoon. She built her $2.6 billion fortune through her television show, network company, and magazine.
Investor Tycoons
Traditionally, investors weren’t considered tycoons since they weren’t entrepreneurs. That’s because investors build their wealth by investing in other people’s companies. However, there are a few exceptions to this rule. Warren Buffett, one of the most successful investors of all time, is considered an investor tycoon. He’s worth nearly $125 billion, and his investment strategy is followed by other investors worldwide. Want to read more content like this? Sign up for The Balance’s newsletter for daily insights, analysis, and financial tips, all delivered straight to your inbox every morning!
