Adolf Merckle was very successful and talented entrepreneur. He was born in Dresden, Germany into a wealthy family. Most of his wealth came from inheritance. He developed his Bohemian grandfather's chemical wholesale company into Germany's largest pharmaceutical wholesaler, Phoenix Pharmahandel. His family also owns the generic drug manufacturer Ratiopharm, and large parts of cement company HeidelbergCement as well as vehicle manufacturer Kässbohrer.
He was educated as a lawyer but spent most of his time investing. He lived in Germany with his wife and four children.
Merckle made a speculative investment based on his belief that Volkswagen shares would fall, when, in October 2008, a support of Volkswagen by Porsche SE sent shares on the Xetra dax from â'¬210.85 to over â'¬900 in less than two days resulting in losses for Merckle.
In 2007 he was worth US$12.8 billion by most estimates (Forbes), and by December 2008 he was still worth $9.2 billion, a loss of $3.6 billion. In 2006 he was the worlds 44th richest man, moving to 96th place by December 2008, yet still one of Germany's top 5 richest men.
On the 5th January 2009 74 year old Merckle threw himself in front of a train just a few of hundred metres from his home. A suicide note found detailed that the prospect of loosing his billion dollar empire drove him to take his own life. What a tragedy for him, for his family and friends and for the German nation.
What drove Merckle to take such tragic and painful action? Debt. It wasn't the stress of being in control of his $9 billion dollar empire or the responsibility of over 100,000 employees it was the debt that he struggled to refinance as the availability of credit around the world evaporated that drove him to depression and to ultimately take his life. My heart aches for his family for such a pointless loss.
It doesn't matter how many zeros are on the dollar figures on your income or asset values it is your level of debt that most often determines your level of happiness. Studies have confirmed this phenomenon and countless people testify to the feeling of release, freedom and happiness when they are debt free.
Sure an extra $1,000,000 or $100,000 or even $10,000 might be a great help to your current situation right now but when it all boils down to it money won't make you happy, not even if you are talking about billions of dollars, but working your way out of debt and staying out of debt is sure fire way to increased happiness, contentment and true financial freedom.
Gavin Martin is a Financial Adviser, Managing Director of Cornerstone Wealth and founder of www.mastermymoney.com.au