The World's Most Eccentric Billionaire: 8th Richest, But Lives Like a Poor Person

IKEA, a Swedish furniture company, has been one of the most influential global brands over the last century. IKEA has transformed design and is at the forefront of cost-effective furniture distribution.

Ingvar Kamprad (1926–2018), a Swedish business magnate, founded this brand.

In 1943, Ingvar Kamprad founded a multinational chain of furniture and home appliance stores. He dedicated his life to growing IKEA into a global business and became a self-made billionaire. According to Bloomberg, at the time of his death, Kamprad was the world's eighth richest person, with an estimated fortune of 58.7 billion USD.

Learn more: Top 10 Frugal Richest Billionaires Who Live Like Miserable People

Ingvar Kamprad

Extremely Frugal Billionaire

Despite his wealth, the business magnate is well-known for his frugal habits, which surpass those of many ordinary people.

For two decades, Kamprad drove a 1993 Volvo 240 GL. He only gave up on this popular car after someone convinced him that it was too old to be safe. The car was originally worth around $22,000 USD, but when the billionaire sold it, only a few thousand USD remained.

The founder of IKEA did not hesitate to admit that he only wears clothes from flea markets. This self-made billionaire grew up in Smaland, a small town in Southern Sweden, with limited resources. That is one of the reasons he developed the habit of saving from an early age. He went on to say: "The nature of the Smaland people is thrifty."

The World's Most Eccentric Billionaire

Despite the fact that he owns tens of billions of dollars and can spend freely, Ingvar Kamprad adheres to strict spending principles. He once stated that he had to pay approximately 27 USD (22 euros) for a haircut in the Netherlands in 2008, which he considered to be an exorbitant price when compared to the average haircut budget.

"Normally, I try to get a haircut while I'm in a developing country," he told me.

Throughout his life, the founder of IKEA never flew business or first class. When Kamprad travels, he always flies economy class and stays in budget hotels.

These habits not only reflect Kamprad's personal beliefs about consumerism, but also serve as role models for his employees.

"His cheap flights, hotels and meals are partly seen as a model for company executives, who are expected to follow suit, seeing employment at IKEA as a commitment of life," according to a report in the New York Times.

In 1976, Kamprad wrote and distributed "The Testament of a Furniture Dealer," an instructional pamphlet that IKEA employees still use today. He explained his frugal philosophy, stating that "wasting resources is a cardinal sin at IKEA."

Do not Let His Children Inherit IKEA

Ingvar Kamprad and his 3 sons

In 2018, after the billionaire's death, his lawyer announced that his four children (3 sons and one adopted daughter) and grandchildren would not inherit his IKEA shares. Instead, nearly $60 billion in assets will be distributed through a series of trusts and holding companies.

Since his birth, the business magnate has established numerous trust funds and holding companies to safeguard IKEA's independence, ensuring that his "brainchild" does not become an asset or a family company.

In 1982, Kamprad established Stichting INGKA (INGKA Foundation) in the Netherlands, a charitable foundation that controls the majority of IKEA stores worldwide through a holding company also based in the Netherlands. The Interogo Foundation in Liechtenstein oversees the foundation, which is not under his family's control.

Meanwhile, the Inter IKEA Systems BV joint stock company owns the IKEA brand and the entire franchise.

This one-of-a-kind and complex structure was designed to ensure that no heir could take control of the company following Ingvar Kamprad's death. The billionaire wants IKEA to be completely independent of the Kamprad family and able to thrive in the long run.

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