How Larry Ellison Built a $365 Billion Fortune by Defying Conventional Wealth Management

Ellison’s Wealth Strategy: Holding and Leveraging Oracle Shares

Larry Ellison, co-founder and chairman of Oracle, has built the world’s second-largest personal fortune—estimated at $365 billion—by maintaining a substantial stake in Oracle over nearly five decades. Unlike many of his tech billionaire peers who diversify by selling shares, Ellison has largely retained his holdings, using leverage to access liquidity for his expansive investments and philanthropic endeavors.

Largest Individual Stake Among Tech Titans

According to recent SEC filings, Ellison owns 1.16 billion Oracle shares, amounting to 41% of the company’s outstanding stock. This stake dwarfs those of other prominent tech entrepreneurs: Elon Musk holds less than 20% of Tesla, Mark Zuckerberg about 14% of Meta, and Jeff Bezos approximately 8% of Amazon following significant share sales.

Funding a Vast Personal Empire Through Borrowing

Rather than selling shares, Ellison borrows heavily against his Oracle stock. His latest SEC disclosures reveal that he has pledged 277 million shares—roughly a quarter of his total Oracle holdings—as collateral for personal loans, valued at over $82 billion based on recent market prices. This borrowing strategy enables him to finance a diverse portfolio including luxury real estate, sports franchises, private jet collections, and media investments, all while preserving his ownership and control.

Ellison’s holdings include the Hawaiian island of Lanai, the Indian Wells tennis tournament, a 288-foot mega-yacht, and high-profile properties in Florida, including a $277 million resort and a record-setting $173 million mansion sale. He has also invested in ventures such as Elon Musk’s acquisition of Twitter, longevity startups, and the global sailing league SailGP.

Oracle’s Support and Share Repurchases Boost Ellison’s Stake

Oracle’s aggressive share repurchase program has reduced the total outstanding shares by 36% over 15 years, effectively increasing Ellison’s ownership percentage from 23% to 41% despite his stable share count. The company’s board has expressed confidence that Ellison’s share pledging does not pose material risks to stockholders, noting that pledged shares secure personal loans used exclusively for outside ventures.

Risk and Governance Considerations

Financial experts highlight that Ellison’s level of share pledging is exceptional. Michael Sury, finance professor at the University of Texas at Austin, notes that most corporate boards would view such extensive borrowing against shares as a red flag due to potential governance and financial risks. However, Ellison’s considerable wealth and influence provide lenders with comfort uncommon for typical executives.

While it is unclear how much of the loan capacity Ellison has drawn down, he has previously indicated that his credit lines serve as financial flexibility to seize large investment opportunities without needing to liquidate shares.

Contrasting Approaches Among Tech Executives

Ellison’s strategy contrasts with that of Oracle CEO Safra Catz, who has sold billions in options over recent years to diversify her holdings. Wealth advisors emphasize that there is no universal approach to managing concentrated stock positions; individual risk tolerance and strategic goals vary widely.

Borrowing against stock can offer tax advantages and enable reinvestment into diversified assets, but it also amplifies risk if stock values decline. Private banks typically assess the totality of a client’s assets—including real estate and collectibles—when extending such loans to ultra-wealthy clients.

Philanthropy and Future Focus

Ellison has committed hundreds of millions to philanthropic causes, including climate change, disease research, and hunger alleviation through the Ellison Institute of Technology, a partnership with the University of Oxford. He is a signatory of The Giving Pledge and continues to channel resources into both charitable and strategic investments.