Billionaires:- 2022 – The First Side of the Coin

Background

In the heat of the Covid epidemic, the exponential rate at which the wealth of billionaires increased was lampooned by some in the media.

Bloomberg

Michael Bloomberg’s financial website has a quick retake of how the super rich have fared through the first half of 2022.

The article is available via:-

The world’s 500 richest people have lost more than a trillion this year
Link

 

Wealth

How is their wealth valued?

Because the ultrarich’ s wealth is mostly valued through companies that sell stock to the general public, their most consequential holding is easy to track.

How is their wealth?

In the first half of 2022, stocks are under-performing.

 

Wealth Depreciation

Author:- Ben Ben Steverman
Title:- A $5 Trillion ‘Wealth Shock’ Is Cracking Americans’ Nest Eggs
Link

Just as the US is learning to live with the virus and spending shifts back toward pre-pandemic normal, it faces a new scary threat: A plunge in wealth since the start of 2022.

So far, the richest Americans have borne the brunt, with US billionaire fortunes down almost $800 billion since their peak amid the sharp losses in stocks, crypto and other financial assets.

But surging interest rates are also starting to rattle the housing market, where middle- and working-class families have the bulk of their wealth.

Since the start of the year, the S&P 500 Index is down 18%, the Nasdaq 100 has lost 27% and a Bloomberg index of cryptocurrencies has plunged 48%.

 

Billionaires are losing the most

Author:- Ben Ben Steverman
Title:- A $5 Trillion ‘Wealth Shock’ Is Cracking Americans’ Nest Eggs
Link

Billionaires were the biggest winners of 2020 and 2021. Now they’re losing more than almost everyone else.

The Bloomberg Billionaires Index, a daily measure of the wealth of the world’s 500 richest people, has dropped $1.6 trillion since its peak in November 2022.

Leading the way are the Americans on the index, who have lost $797 billion since their peak. Perhaps the most humbled by it all is the world’s richest person, Elon Musk.

He’s lost $139.1 billion, or 41% of his wealth, since November, when his net worth briefly surpassed $340 billion.

Amazon.com Inc. founder Jeff Bezos, the second-richest person, lost $82.7 billion, or 39% of his peak wealth.

 

Investments

Investment Option

Entrepreneurship

Big Technology

The richest entrepreneurs have each lost over 50 billion each.

Our list of rich technology entrepreneurs includes:-

  1. Elon Musk
  2. Jeff Bezos
  3. Mark Zuckerberg
Tabulated
Entrepreneur Company Stock Value Change % Worth on 2022-January-1st Worth on 2022-May-21st Difference
Elon Musk Tesla ( TSLA ) -37.2% $277 billion $210 billion Over $50 billion
Jeff Bezos Amazon ( AMZN ) -35.5% $192 billion $136 billion Over $50 billion
Mark Zuckerberg Meta Platforms – Facebook ( FB ) -42.5% $115 billion $71 billion Over $40 billion

Coinbase

Crypto currency holdings have not proven defensive.

  1. Changpeng Zhao
  2. Brian Armstrong
Tabulated
Entrepreneur Company Stock Value Change % Worth on 2022-January-1st Worth on 2022-May-21st Difference
Changpeng Zhao Binance ( Binance Coin [BNB] ) -85% $96 billion $20 billion $70+ billion
Brian Armstrong Coinbase ( COIN ) -73.8% $10 billion $2.2 billion $8 billion

Home Ownership

Over the last decade, aggregated home prices have gone up by $18 trillion.

The federal reserve stayed interest rates at historic low rates since 2009.

Homeowners responded by refinancing their homes and pulled equity out of it.

 

Wealth Holdings By Financial Group

Real estate is far more evenly distributed than financial wealth. The top 1% owns more than half of U.S. holdings of stocks and mutual funds, and the bottom 90% owns less than 12%, according to Federal Reserve estimates. By contrast, in real estate the bottom 90% owns more than half of the total, while the top 1% holds less than 14%.

Tabulated

Investment Type Top 1% Bottom 90% Middle 10%
Stocks and Mutual Funds 50% 12% 38%
Real Estate less than 14% More than 50% 36%

 

Charted

Stocks and Mutual Funds

 

Real Estate Holdings

Summary

This was a difficult post to write.

It talks about uncomfortable things.

It touches on how entrepreneurs, responsible for creating jobs and protecting livelihood, themselves are struggling.

One hopes that upon giving away so much money and services in charity, one’s own income will be better insulated.

Not so here…

All the same always in gratitude to:-

  1. Bill Gates and Melinda Gates
  2. Jeff Bezos and MacKenzie Scott
  3. Mark Zuckerberg and Priscilla Chan
  4. Michael Bloomberg
  5. Jack Dorsey

 

References

  1. Bloomberg
    • Ben Steverman
      • A $5 Trillion ‘Wealth Shock’ Is Cracking Americans’ Nest Eggs
        Link
  2.  GoBankingRates
    • Dawn Alcott ( 2022-May-19th )
      • Elon Musk’s Net Worth Has Dropped $49 Billion As Tesla and Twitter Stock Continue to Slide — Should You Sell Your Stocks?
        Link
    • Michelle Thompkins ( 2022-May-16th )
      • How much is Jeff Bezos worth?
        Link
    • Michelle Smith ( 2022-May-19th )
      • How Much Is Mark Zuckerberg Worth?
        Link
  3. Celebrity Net Worth
    • Brian Warner
      • Coinbase CEO Brian Armstrong’s Net Worth Has Been Utterly Obliterated
        Link
  4. CNBC
    • Robert Frank
      • The wealthiest 10% of Americans own a record 89% of all U.S. stocks
        Link
  5. FinTech
    • Joanna England
      • SoftBank & Coinbase Chaos as Share Prices & Crypto Plummet
        Link
  6. Finbox
    • Amazon ( AMZN )
      Link
    • Tesla ( TSLA )
      Link
    • Meta Platforms ( FB )
      Link
  7. Interesting Engineering
    • Loukia Papadopoulos
      • Binance’s luna holdings drop from $1.6 billion to $2,200. Here’s what’s next for Zhao
        Link
  8. Herein
    • Covid19:- What the rich have given
      Link
    • MacKenzie Scott
      Link
    • The Giving Pledge +Bill & Melinda Gates +Warren Buffet
      Link

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