RSS   Newsletter   Contact   Advertise with us

Billionaires' companies return almost twice average market performance

Share on Twitter Share on LinkedIn
Christian Fernsby ▼ | November 13, 2019
Billionaire-controlled companies have returned almost twice the average market performance over the past 15 years.

KEY POINTS
  • Asia’s billionaires saw a correction following five years of significant growth, during which their wealth almost quadrupled
  • In Asia, over half (57 percent) of female billionaires are now self-made

New York stock exchange
Business   New York stock exchange
This is one of the findings of the annual UBS and PwC Billionaires Insights report, The Billionaire Effect. The report also reveals that, more broadly, billionaires’ wealth dipped by USD 388 billion in 2018, following five years of growth.

Asia’s billionaires saw a correction following five years of significant growth, during which their wealth almost quadrupled. By contrast, the Americas saw a slight wealth increase this year, led by prominent US tech billionaires. Despite slowing growth last year, billionaire wealth is over a third higher (34.5 percent) than five years earlier, amounting to an increase of USD 2.2 trillion.

Self-made billionaires are seeking new ways to make the world a better place. Traditional grant-giving is evolving into strategic philanthropy and championing some ambitious causes.

Philanthropists are also increasingly collaborating to make a difference, with other billionaires, NGOs, charities and governments.

The number of female billionaires has grown by 46 percent in five years ahead of the growth rate of male billionaires in the same period (39 percent). There are now 233 female billionaires, up from 160 in 2013.

In Asia, over half (57 percent) of female billionaires are now self-made.

Four in 10 of 2018’s self-made female billionaires built businesses in the consumer and retail sector.

This Billionaire Effect can be attributed to billionaires’ appetite for smart risk taking and their greater willingness to plan and invest for the long term.

The Americas bucked the trend of dipping wealth, nudging upwards 0.1 percent. The net number of billionaires in the Americas also rose by 4.8 percent to 749 by the end of 2018. Growth was lifted by US tech titans, as existing entrepreneurs continued to maintain their growth and new entrants started to make good headway.

In EMEA, wealth dipped nearly 6.8 percent to USD 2.4 trillion. The number of European billionaires declined by 4.9percent to 598.

APAC remains the region with the highest number of billionaires globally. Nevertheless, the number of billionaires in APAC dropped 7.4 percent to 754 in 2018. This masks considerable churn, as 169 people fell off the billionaire list and 110 new entrants emerged. China produced 56 billionaires in 2018, which equates to one per week.


 

MORE INSIDE POST