Robert Frank (whose detailed coverage of the super-wealthy offered up a glimpse into an unknown (and new) world) gave a casual lecture about how to cover the rich at today’s Business and Economics Reporting class. I thought I’d share a few of his “pearls.” Frank still writes a blog about the wealthy at WSJ. He loves his job, but admits it isn’t an easy field to break into now. “If it was hard talking to the rich when they were getting richer, try talking to them when they are getting poorer.” According to Frank, the population of millionaires is down in the US by about 30% this year. Many of them, he says, have lost over half their wealth.

I’m impressed by how engaged the class is today. And who is speaking up. And what they’re saying. It may just be a lingering stereotype of mine, but I get the impression that this lecture hits close to home for many Columbia students. Most questions are simply curious. But some seem defensive. And I wonder who here meets the $10m criteria to be a member of Richistan. Funny enough, I find it somewhat relevant here to complain/express envy that the professor for the “other” Business and Economics Reporting class bought the book for his entire class. I doubt that a state school professor would be so generous. Could be wrong.

Here are some quick highlights from Frank’s lecture:
Follow the “Three T’s” in covering the rich:

• Invest TIME. Frank took a year to get to know Ed Bazinet, who made millions making ceramic villages inside of light bulbs to talk about his own story.
• TRUST. Avoid having an agenda. “I didn’t judge the people I was covering [the wealthy]. I thought the readers would be able to make up their own mind.” – Robert Frank, speaking on Richistan
• TRADE. Trade information that’s useful to them. Frank gives an example of keeping up on JAR, a type of expensive jewelery brand. Only after he remarked on a JAR jewelery auction at Christies, did a very reluctant source agree to cooperate. He recommends setting up a Google Alert on a relevant topic related to your source and use new information as an excuse to make contact. “Trading information forces you into their world. Be in their world.” – Robert Frank

Good resources to develop stories about the wealthy

• People are the best sources for great stories. Keep up good relationships based on the Three Ts.
• US Survey of Consumer Finances
• Merrill Lynch “Worldwide Wealth Report” (I couldn’t easily find this online.)

Here’s an excerpt of a review about Richistan by the NYTimes.

The data bear Frank out. It was a huge deal when John D. Rockefeller became the country’s first billionaire. Adjusted for inflation, he had $14 billion — less than the net worth of each of Sam Walton’s five children today. There were an estimated 13 American billionaires in 1985. Now there are more than 1,000. In 2005, America minted 227,000 new financial millionaires, men and women with more than $1 million in investible assets. There are as many millionaires in North Carolina as there are in India. And so on.