Good Bad Billionaire – Arnold Schwarzenegger: Muscles, Movies, Money

BBC World Service | Hosts: Simon Jack & Zing Tsjeng | Released: October 6, 2025

Episode Overview

This episode dives deep into the extraordinary journey of Arnold Schwarzenegger—from an austere, post-war Austrian childhood to becoming a global icon in bodybuilding, Hollywood, and politics, and ultimately a billionaire investor. Simon Jack and Zing Tsjeng unpack not just Arnold’s celebrated public personas—bodybuilder, actor, governor—but also the business instincts, investments, controversies, and philanthropic efforts that define his billionaire status. The question, as always: is Schwarzenegger a "good," "bad," or just "another" billionaire?

1. Early Life & Upbringing

[03:57–08:56]

• Birth & Family: Born in July 1947 in the small village of Thal, Austria, into a modest, working-class family just after World War II. Arnold’s father, Gustav, was a veteran with a troubled past and violent tendencies, which shaped Arnold’s strict and tough upbringing.
• Harsh Childhood: No running water or plumbing; sharing a room with his brother until age 18. Daily life was “intense, physical, quite brutal.”
  Simon Jack [05:07]: “Arnold’s father…could be a violent and angry drunk. He regularly hit Arnold and his brother...Arnold has attributed his father’s violent outburst to the guilt he felt for his behaviour during the war.”
• Early Work Ethic: Before breakfast, Arnold and his brother had to do 200 sit-ups and pushups—a discipline that laid the groundwork for his fitness empire.
• First Ventures: At age 10, Arnold started selling ice cream in the park, earning the equivalent of $70 a day today. Later, he worked shoveling glass and in a sawmill—learning the value of hard work and entrepreneurship early.

2. Bodybuilding: The Escape Route

[07:30–13:07]

• Discovering Bodybuilding: At 14, inspired by British bodybuilder Reg Park (who became an actor in Hollywood), Arnold finds his way out of Austria: “He started dreaming of becoming a professional bodybuilder.”
• Competitions & Triumphs:
  • First taste of success at 15, lifting 35lbs more than ever before in front of 300–400 people.
  • Won Jr. Mr. Europe while going AWOL from compulsory Austrian army service—ended up in military jail but received unofficial support because he won.
  • 1967: Youngest ever to win Mr. Universe at age 20.
    Zing Tsjeng [08:56]: “If you look at photos of this 20-year-old Arnold Schwarzenegger, he’s already recognisably this enormously hulking muscle man...”
• Steroid Use: Arnold openly admits he took anabolic steroids to compete, reflecting the norms of his era:
  Simon Jack [11:04]: “He’s since issued warnings about steroid use…but also notes the dosages bodybuilders took back then were much lower…”

3. Coming to America: The Millionaire Mindset

[12:13–16:28]

• Move to US & New Ambitions: Joe Weider, a bodybuilding impresario, brings Arnold to the US, providing a salary, car, and apartment.
• Domination: Wins every major bodybuilding title multiple times (Mr. Olympia, Mr. Universe, Mr. World) but realizes real wealth isn’t in trophies.
• Arnold’s Business Philosophy:
  Simon Jack [15:38]: “He said, ‘I did not rely on my movie career to make a living...I didn’t want to get into that situation’—referring to artists living paycheck to paycheck.”
• Education: Pursued business classes and ultimately a degree, taking inspiration from economists like Milton Friedman and later, Warren Buffett.
  Simon Jack [16:28]: “Even after superstardom, he’s been known to attend business lectures...Buffett actually became a mentor of Arnold, inspiring his investment style.”

4. Early Businesses & Real Estate Investments

[17:11–20:27]

• Seminars & Side Hustles: Earned from bodybuilding seminars, mail-order training booklets, and running his own championship contests.
• Bricklaying Scam: With Franco Columbu, set up a bricklaying business, using their “European mystique” to charge premium rates.
• Earthquake Bonanza: The 1971 San Fernando earthquake’s aftermath meant record business for bricklayers, allowing Arnold to invest his first $1,000 in land.
• Learning to Flip: Observing home owners flipping properties for huge profits, he starts trading up in real estate, reinvesting profits each time.
• First Million:
  Zing Tsjeng [20:17]: “By the time Ronald Reagan came into office in 1981 and the economy slowed, I’d achieved another piece of the immigrant dream. I’d made my first million.”

5. Hollywood Stardom & the Power of Negotiation

[21:21–26:07]

• Entry to Acting:
  • Early films (Hercules in New York, Stay Hungry), an ironic Golden Globe, documentary Pumping Iron (which took his fame mainstream).
• Blockbusters:
  • Conan the Barbarian (first million-dollar payday, after a string of contracts with profit participation).
  • The Terminator (1984): Only 100 words of dialogue, but the breakout hit made Arnold a global action star.
    Simon Jack [23:34]: “Arnold actually only has 17 lines in the Terminator…including the iconic 'I’ll be back.'"
• Compounding Movie Earnings: Fees doubled and tripled: Commando ($1.5m), Predator ($3m), The Running Man ($5m), Total Recall ($10m), Terminator 2 ($14m).
• Smart Deals:
  • Took no fee for “Twins” (1988) in exchange for 20% of gross: made over $40m, much more than his usual salary. Simon Jack [25:45]: “In 2025, Arnold confirmed that he’d made at least $40 million from it.”

6. Leveraging Fame: Endorsements, Investments, and Big Risks

[26:07–31:38]

• International Adverts: Up to $5m per ad for products in Japan and elsewhere.
• Planet Hollywood: Minority shareholder, paper value up to $120m—lost most after bankruptcy, but "did fine" financially thanks to contract protections.
• Paul Wachter – The Key Advisor: Hires Wachter (Main Street Advisors) to manage investments, putting Arnold into elite company with LeBron James, Billie Eilish, and others.
• Major Investments:
  • Bought Boeing 747 to lease to Singapore Airlines (flop).
  • Early Starbucks stock (100x increase in value).
  • Early Google investment in Series A round (huge profit).
  • Most lucrative: stake in Dimensional Fund Advisors (DFA), a mutual fund company. Now DFA manages $777bn; Arnold’s 5% stake estimated at $500m.

7. The Political Turn: Governator Era

[31:38–36:03]

• Entering Politics: Becomes US citizen (1983), marries Maria Shriver (Kennedy/Shriver dynasty), and ultimately runs for governor on the Republican ticket—despite family Democratic ties.
• Mammoth Film Deal Pre-Politics: For "Terminator 3" (2003), received $30m upfront, 20% of net profits—over $120m personally, more than the studio made.
• The Campaign:
  • Used personal wealth as proof against corruption:
    Arnold (quoted) [33:30]: “I have plenty of money. No one can pay me off. Trust me, no one.”
  • Faced accusations of sexual misconduct and revelations about his father’s Nazi involvement. Supported in campaign by Warren Buffett, who became a senior adviser.

8. Scandals, Losses, and Legacy

[36:03–41:30]

• Post-Governor Scandal: Upon leaving office in 2011, wife Maria Shriver confronts Arnold about a son from an affair with housekeeper Mildred. Divorce, finalized in 2021, likely splits assets 50/50 (no prenup, California law), dramatically reducing his net worth. Simon Jack [36:45]: “Without his divorce, Arnold could have been worth nearly double what he is today.”
• Return to Film/Media: Cameos and sequels (Expendables, Escape Plan), hosting The Apprentice USA, Netflix’s FUBAR, fitness app, and more. Estimated $500m in movie earnings.
• Additional Ventures: Commercial real estate flips, Oak Productions, bodybuilding conventions, TV investments, and Beyond Meat backing.

9. Philanthropy, Environmentalism & Public Service

[41:09–42:42]

• Charity Work:

  • Special Olympics (Global Ambassador, started by his ex-mother-in-law Eunice Shriver).
  • Simon Wiesenthal Center (donated $100k).
  • After School All Stars (nonprofit for low-income youth).
  • Donated $1m during the COVID-19 pandemic; organized fundraisers (Oktoberfest poker party raised $7m).

• Environment: Pushed major climate policies as California governor; launched Schwarzenegger Climate Initiative and institution at USC, annual climate conference in Vienna.

  Simon Jack [41:42]: “He enacted some major environmental policies when he was California governor...he’s continued that environmental work...But...I’m totting this up—$100k here, a million there, $7 million...not huge.”

10. Controversies and Candid Reflection

[42:31–44:16]

• Sexual Misconduct Allegations: Surface during 2003 gubernatorial run; Schwarzenegger apologized and admitted to “crossing the line with women multiple times.”
• Tabloid Management: David Pecker of American Media claims they were paid to suppress negative stories about Arnold during campaign, similar to practices with Donald Trump.
  Zing Tsjeng [43:30]: “He said he’d crossed the line with women multiple times...we’re not here to pry or moralize...but not on the scale of major fraud or criminality we’ve seen with others.”
• Overall Reputation: No huge “Fraud/Crime” controversies—most issues are personal rather than corporately damaging.

11. Wealth, Power, and Legacy Breakdown (Scoring)

[39:18–46:10]

• Wealth: $1.2 billion per Forbes (2024), largely from DFA stake and entertainment. Real estate portfolio valued at $40m.
  • Scores: Zing – 7/10 (“Rags to riches”), Simon – 6/10 (“Entry-level billionaire, but iconic story”).
• Philanthropy: Scores lower, given the scale relative to net worth. Zing – 4/10, Simon – 3/10.
• Controversy: Zing – 3/10, Simon – 2/10. Personal scandals, but not financial/corporate malfeasance.
• Power & Legacy:
  • Governorship of California (world's 4th largest economy), enduring environmental policies.
  • Immense legacy in bodybuilding and action films (“the last great action hero” – Zing).
  • Scores: Simon – 5/10 (high for film/bodybuilding, lower for real-world power); Zing – 8/10.

12. Notable Quotes & Memorable Moments

• On Perseverance:
  Zing Tsjeng [40:42]: “The journey from growing up dirt poor in Austria…to being the governor of California…that is like…a movie in its own right.”
• Arnold’s Wisdom:
  Simon Jack [15:38]: “I did not rely on my movie career to make a living…I didn’t want to get into that situation.”
• Showmanship:
  Simon Jack [46:10]: “He does this trick when he goes to interview people…goes to shake their hand and always goes ‘ow, ow, ow’…rather charming.”
• On His Legacy:
  Zing Tsjeng [46:42]: “Out of all the people that we’ve covered, Arnie is maybe the person who has kind of almost come the furthest…literally building, through your muscle alone, a new life for yourself—that is something that is just…iconic.”

13. Final Verdict (Good, Bad, or Just Another Billionaire?)

Both hosts agree Schwarzenegger embodies the American Dream and is atypical—larger than life, enduring, and ultimately more “good” than many billionaires profiled previously. He is not ruthless, nor especially philanthropic, but his legacy is considerable, and his journey from nothing to billionaire is near-mythic.

Simon Jack [47:11]: “So he’s definitely iconic, but is he good, bad or just another billionaire? What do you think?”

Next Episode Teaser

• Russia’s first self-made female billionaire, Tatiana Kim, founder of Wild Berries.

Produced by Mark Ward. Research by Maria Noyen. Editor Paul Smith.

TL;DR

Arnold Schwarzenegger’s billionaire journey is a true saga—Austrian village to Hollywood stardom, political power, canny investments (notably in mutual funds), and a lasting legacy in fitness and cinema. He’s weathered scandals and personal loss, gives some to charity, and retains his charm and drive into his late 70s. Verdict: certainly not perfect, but far from the worst billionaire—if anything, an American archetype.