More billionaires are inheriting their wealth than ever before, signaling a significant wealth transfer
- More new billionaires are inheriting their wealth rather than creating it through entrepreneurship
- The global billionaire class now has 2,544 members, with a combined wealth of $12 trillion
- Europe’s consumer and retail billionaires saw a bounceback in wealth due to a post-pandemic shopping splurge
- The wealth transfer is leading to a generation gap and a shift in investing priorities
- Inheritors of wealth are more focused on innovative for-profit investments rather than traditional philanthropy
For the first time in the nine years UBS has tracked the global billionaire class, more new members joining this rarefied group have accumulated their riches through inheritance than entrepreneurship. In the 12 months through April 6, 53 heirs inherited a total US$150.8 billion, besting the 84 newly minted self-made billionaires whose wealth totaled US$140.7 billion, according to the annual UBS Billionaire Ambitions Report. This shift is a key indicator of the ongoing wealth transfer happening globally, with over a thousand billionaire entrepreneurs expected to pass on $5.2 trillion to their heirs in the next few decades. The report also reveals that there are now 2,544 billionaires worldwide, with a combined wealth of $12 trillion. While the pandemic caused a dip in wealth, it has since bounced back, particularly for Europe’s consumer and retail billionaires who saw a post-pandemic shopping splurge boost their profits and share prices. However, the wealth transfer is not just about money, but also about the transition of values and priorities. The next generation of billionaires is reshaping and repositioning their wealth to adapt to a changing world influenced by climate change, technological advancements, and geopolitical uncertainties. This has led to a generation gap and a shift in investing priorities, with inheritors favoring direct private equity investments and innovative for-profit ventures. Traditional philanthropy is also taking a backseat for inheritors, who are exploring social finance and impact investing as ways to make a difference. The rise of inherited wealth marks a significant shift in the global billionaire class and highlights the need for careful planning and preparation for the wealth transfer that is already underway.
Factuality Level: 7
Factuality Justification: The article provides information about the shift in wealth accumulation from entrepreneurship to inheritance among billionaires. It cites data from the UBS Billionaire Ambitions Report and includes quotes from UBS representatives. The article also discusses the impact of the pandemic, climate change, and technological change on wealth transfer. However, the article lacks specific details and analysis on the methodology of the UBS report and does not provide a comprehensive view of the global billionaire class.
Noise Level: 6
Noise Justification: The article provides information on the shift in wealth accumulation from entrepreneurship to inheritance among billionaires. It discusses the global wealth transfer and the impact of factors such as the pandemic, climate change, and technological change on the next generation of billionaires. The article also mentions the investing priorities and philanthropic goals of billionaires. However, it lacks in-depth analysis and evidence to support its claims, and it briefly diverges into a different topic about sales of $10 million-plus homes.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the wealth transfer among billionaires and the impact it may have on their investments and philanthropy.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article primarily focuses on the wealth transfer among billionaires and its implications for their investments and philanthropy. It does not mention any extreme events or their impact.
Public Companies: UBS (UBS)
Private Companies: Elon Musk,Larry Ellison,MacKenzie Scott
Key People: Larry Ellison (Billionaire), Bill Gates (Billionaire), Judy Spalthoff (Head of UBS Family Office Solutions Group), Elon Musk (Billionaire), MacKenzie Scott (Billionaire)
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