BIG UPDATE: Home Depot founder Bernard Marcus’s net worth: From fired CEO to entrepreneur
According to The Street, Homeowners seeking tools and equipment for do-it-yourself repairs and projects often turn to Home Depot (HD) for supplies and expert advice from store associates. Founded in 1978 by Bernard Marcus and his partner Arthur Blank, Home Depot has grown to become the largest home improvement retailer in the U.S., with a focus on exceptional customer service—a core principle instilled by Marcus himself. As a result, his net worth has soared alongside the value of Home Depot’s stock.
Bernard Marcus’s Net Worth
As of late September 2024, Bernard Marcus boasts a net worth of $11 billion, according to Forbes. This positions him among the wealthiest Americans whose fortunes originated in the retail industry. For context, each sibling of the Walton family, founders of Walmart (WMT), has a net worth of approximately $100 billion.
How Bernard Marcus Made His Money
The majority of Marcus’s wealth comes from the shares he holds in Home Depot. While the exact size of his stake in the company as of 2024 is unclear, it was reported that he held 60 million shares upon his retirement in 2002. Those shares would currently be valued at about $24 billion based on Home Depot’s stock price as of late September 2024, suggesting that he may have sold some shares since retiring.
The Early Life of Bernard Marcus
Bernard “Bernie” Marcus was born in 1929 and raised in Newark, New Jersey. He is the youngest of four children born to parents who emigrated from Russia. Growing up in a mixed-race neighborhood, Marcus faced adversity and even joined a local gang after being bullied.
His father, a carpenter, struggled as a businessman, which placed financial strain on the family. Initially, Marcus aspired to become a doctor, believing it would provide a more stable income. He studied pre-med at Rutgers University and was accepted into Harvard Medical School, but the institution required a $10,000 donation for admission, which he could not afford. Consequently, he shifted his focus to a career in pharmacy.
Although pharmacy wasn’t his passion, Marcus found satisfaction in the retail side of the business. His time working for the discount retailer Two Guys helped him understand the importance of customer service in retail operations.
The Birth of Home Depot
After his tenure at Two Guys, Marcus held various retail positions, including president of O’Dell’s and vice president of hard goods merchandising for Vornado. In 1972, he became president of Handy Dan Home Improvement Centers, which had about 70 locations in the western U.S.
In 1978, after being perceived as a threat by Handy Dan’s CEO Sanford Sigoloff, Marcus and his colleague Arthur Blank were fired. At nearly 50, with a family to support, Marcus needed to secure new employment. He turned to his friend Kenneth Langone, a venture capitalist, who encouraged him to pursue his vision of a home improvement store. With $2 million in startup capital from Langone, Marcus and Blank, along with two other partners, founded Home Depot.
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Home Depot’s Stock Performance
Home Depot’s stock has significantly outperformed major benchmarks since it began trading on the Nasdaq Stock Market in 1981, just three years after the company’s establishment. The stock has appreciated more than 19,800 times since its IPO, meaning a $10,000 investment back then would be worth approximately $198 million as of late September 2024. Many employees of Home Depot have also become multimillionaires, thanks to stock awards and share price appreciation.
Bernard Marcus’s Philanthropy
Marcus served as Home Depot’s first CEO until 1997 and continued as chairman until his retirement in 2002. Post-retirement, he dedicated himself to philanthropy, funding hospitals, autism programs, the Georgia Aquarium in Atlanta, and various Jewish causes, including youth travel programs to Israel. He also supports military veterans with traumatic brain injuries and post-traumatic stress disorders. In 2009, he and his wife, Billi Marcus, founded the Marcus Foundation, focusing on sustainability issues.
As a signatory of the Giving Pledge, Marcus aims to donate a significant portion of his wealth to charitable causes. Politically, he leans conservative and has been a major donor to Republican campaigns, including those of former President Donald Trump.
The First Home Depot Store
Home Depot opened its inaugural store in Atlanta on June 22, 1979. Today, the company operates over 2,300 stores across the U.S., Canada, and Mexico, with more than 85% of its locations in the United States.
