Academic

Donald Trump on Valuation and Ownership

By Gordon Smith, Christine, Hurt, Vic Fleischer, Fred Tung, Lisa Fairfax, David Zaring

Today's W$J quotes from a deposition of Donald Trump, who had been asked about his net worth:

This desposition relates to the defamation suit Trump filed a few years ago against Timothy L. O'Brien, author of TrumpNation: The Art of Being the Donald, for estimating Trump's net worth at only $150 million to $250 million. (Forbes attempted to value Trump's holdings at the time that lawsuit was filed and came up with $2.9 billion.)

More from the W$J:

Mr. Trump was asked whether he has ever exaggerated in statements about his properties. "I think everybody does," he said in the deposition. "Who wouldn't?"

A follow-up question: Does that mean he inflates the value of his properties in general, nonfinancial public statements? "Not beyond reason," he said in the testimony.

I assume this will not be the basis for a new chapter in finance textbooks. Trump also has some interesting notions about equity ownership in the condominiums that bear his name. You and I would probably call these "franchises" or "licensing deals," but Trump calls them "equity ownership":

In the end, of course, Trump is just playing the role of the salesman. The truth is malleable when you are trying to make the sale. The irony here is that he is suing O'Brien for doing the same thing.

Full post as published by Conglomerate on May 18, 2009 (boomark / email).