Billionaire Landscape Shifts: In the exclusive realm of the super-rich, 2022 witnessed a surge in both numbers and overall wealth, according to Swiss bank UBS. The latest edition of the 2023 Billionaires Ambitions Report revealed a 7% increase in the global billionaire count, reaching 2,544 individuals, and a 9% rise in their collective wealth, reaching an estimated $12 trillion.
A notable shift in the dynamics of billionaire wealth accumulation surfaced, marking a departure from the familiar narrative of self-made success stories dominating the billionaire landscape. For the first time since UBS initiated its study in 2015, billionaires inherited more wealth than they generated through their own business ventures. Among the 137 new billionaires, inheritance played a pivotal role, with 53 heirs inheriting a total of $150.8 billion, surpassing the $140.7 billion amassed by 84 new self-made billionaires.
The report emphasized the increasing momentum of generational wealth transfer as substantial sums pass from one generation to the next. UBS, a major player in global wealth management with oversight of $5.5 trillion in invested assets, anticipates this trend intensifying over the next two decades, with over 1,000 billionaires set to pass an estimated $5.2 trillion to their heirs.
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While this generational shift presents a significant opportunity for UBS, it also entails inherent risks. As longstanding relationships come to an end and the custodians of immense wealth change, the bank recognizes the complexities and challenges in navigating this transition. Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management, highlighted the pivotal role the bank plays, working with the second, third, and fourth generations of wealthy families.
The report indicated a shift away from the era of self-made billionaires, often associated with the tech industry boom personified by figures like Elon Musk and Jeff Bezos. However, this trend has experienced a pause as aging business founders, who benefited from various economic factors, pass on their wealth to the next generation.
Despite the surge in inherited wealth, the study noted that the new generation of billionaires is not necessarily composed of individuals in their 20s. Instead, the “King Charles effect” prevails, with many heirs taking over at a more advanced age, often exceeding 50 years.
In the ever-evolving landscape of extreme wealth, the dynamics of billionaire fortunes are undergoing a significant transformation, with generational wealth transfer becoming a defining narrative in the stories of the newly minted super-rich.
Our Reader’s Queries
Who is No 1 richest person in world?
With a staggering net worth of $229 billion, Elon Musk, the CEO of Tesla and SpaceX, as well as the owner of X, has secured his position as the richest person in the world. Following closely behind is Bernard Arnault, the chairman of LVMH. Despite his immense wealth, Musk remains a visionary entrepreneur, constantly pushing the boundaries of innovation and technology. His contributions to the fields of electric cars and space exploration have earned him global recognition and admiration.
How many billionaires are there in the world in 2023?
According to the UBS Billionaires Ambition Report, the number of billionaires worldwide increased by 7% over the past year, reaching a total of 2,544 by April 6, 2023. This marks a significant rise from the previous year’s figure of 2,376. The report highlights the continued growth of wealth among the world’s elite, despite ongoing economic challenges.