What was Fayez Sarofim's Net Worth?
Fayez Sarofim was an Egyptian-American billionaire investment manager and businessman who had a net worth of $20 billion at the time of his death in 2022. As we detail in a moment, for much of his later years, most wealth estimators pegged Fayez Sarofim's net worth in the $1-2 billion range. An IRS payment made after his death inadvertently revealed his fortune was actually closer to $20 billion.
In business circles, Sarofim was known for his conservative dress, penchant for bow ties, and reserved demeanor. He rarely gave interviews and preferred to let his investment record speak for itself. His firm's client list included prominent families, foundations, and institutions.
Sarofim's influence extended beyond finance into Houston's civic life. He served on numerous boards and was a part-owner of the NFL's Houston Texans. His success and longevity in the investment world made him a respected figure in finance, with many seeking his counsel on market matters. Fayez Sarofim passed away in 2022 at the age of 93, leaving behind a legacy as one of Houston's most successful businessmen and philanthropists. His life story exemplified the American dream, rising from an immigrant to become a billionaire through astute investing and unwavering discipline.
Biography
Known as "The Sphinx" for his taciturn nature and investing prowess, Fayez Sarofim was born in 1929 to a wealthy Coptic Christian family in Egypt. Sarofim came to the United States for his education, earning degrees from the University of California, Berkeley, and Harvard Business School.
In 1958, Sarofim founded his investment firm, Fayez Sarofim & Co., in Houston, Texas. The firm specialized in blue-chip stocks and a buy-and-hold strategy, which proved highly successful over the decades. Sarofim became renowned for his patient, long-term approach to investing, often holding stocks for 20-30 years or more.
Sarofim's investment philosophy was centered on identifying high-quality companies with strong fundamentals and sticking with them through market fluctuations. This approach earned him comparisons to Warren Buffett and helped him build a vast fortune. By the time of his death, his firm managed over $40 billion in assets.
Getty Images
Philanthropy
Beyond his financial success, Sarofim was a significant philanthropist and patron of the arts in Houston. He donated generously to cultural institutions, healthcare organizations, and educational causes. Notable beneficiaries included the Museum of Fine Arts Houston, Houston Ballet, and Baylor College of Medicine. During his life, he gave $70 million to the Houston Museum of Fine Arts and $25 million to build a health center at the University of Texas. After death, his estate left more than $400 million to various charities.
Marriages & Divorce Settlements
Sarofim's personal life garnered attention as well. He was married three times. In 1962, he married Louisa Stude, the daughter of Herman Brown, one of the co-founders of oil field conglomerate Brown and Root. They had two children before divorcing in 1990.
In 1984, while still married to Louisa, Fayez had a child with Linda Hicks, a former employee at his investment company. They had a second child in 1986 and a third child in 1989. As you can imagine, his wife was not pleased. When their divorce was finalized in 1990, Louisa Stude received a $250 million settlement. Fayez and Hicks divorced in 1996. She received $12 million.
In 2014, Fayez married Susan Krohn. Susan had previously been married to billionaire Tracy Krohn. In a really strange twist, Susan's daughter Lori was previously married to Fayez's son Phillip. So, he married his son's former mother-in-law. AKA, the mother of his son's ex-wife.
$7 Billion Tax Payment
On February 28, 2023, the United States Treasury received a $7 billion estate-and-gift-tax payment. It was the largest such payment ever received in the history of the IRS, seven times the previous $1 billion record payment the IRS received in January 2017. It was particularly unusual because anyone with an estate worth more than $13 million (or $26 million as a married couple) can use fairly basic tax strategies to avoid the estate tax altogether.
According to an October 2024 report by Sherwood News, Fayez Sarofim was the late billionaire behind the payment. In addition to being contacted by an anonymous source revealing the identity, the outlet used IRS audits to confirm that the payment was from someone who died in Texas.
To owe $7 billion, Fayez would have had to have been worth at least $20 billion. That would have made him secretly the fourth richest person in Texas and roughly the 80th richest person in the world.
As for why he would have allowed for there to be such a large estate tax payment, the anonymous source claimed Fayez was too rich to care AND was very grateful for all that the United States gave to him.
