While the world’s stock markets have been doing well over the past decade, billionaires have apparently won.
According to the 10th annual “Billionaire Ambitions Report” for 2024, recently published by UBS. On top of that list was data that showed that between 2015 and 2024, the wealth of billionaires rose by 121% globally, from $630 million to $14 million. The bank compared that to the MSCI AC World Index, which posted a 73% gain in the same period. The S&P 500 SPX, by contrast, gained nearly 77% during the same period.
Here is their chart:
As for how these billionaires plan to hang on to that wealth, UBS research finds that the outlook for asset quality is changing as US and eurozone central banks lower interest rates.
In the next year, 43% of billionaires said they would increase their exposure to real estate and 42% to increase their exposure to the stock market. But they are also looking to increase investment in “visible areas from storm markets,” with 40% signing intentions to promote gold and precious metals, and 31% levels of income.
Wealthy people continue to favor more investment, with 38% planning to boost private equity, while 28% plan to raise private-equity funds/funding and 34% want to scale back. Another 26% plan to increase investment in real estate, and 35% private debt. But 27% of the billionaires surveyed reported plans to reduce hedge-fund investments versus 23% wanting to increase that share.
Also almost a third, or 32%, want to invest more in technology and innovation, a remarkable increase from 11% last year.
Most billionaires see the best opportunities in North America, with 80% favoring the region in the next 12 months, and 68% in the next five years, as they cite technological innovation and energy security amid global uncertainty. Only 11% see another opportunity in China.
The wealth of North American billionaires, suddenly jumped 52.7% to $3.8 trillion between 2015 and 2020, and another 58.5% between 2020 and 2024, led by industrial and technology billionaires, to $630 billion, UBS said. This region also has the largest share of over 100 billions – 43%, compared to 21% in Western Europe, 15% in Southeast Asia and 8% in China.