One third of the world’s billionaires now live in Europe, according to a new survey conducted by Wealth-X and UBS Billionaire Census. This means that there are more billionaires in Europe than in any other continent. When divided by country, though, the USA comes top, being home to 571 of the 2,325 people classed as billionaires.
That figure represents a new record high for the number of billionaires on the planet, with 155 people having joined the exclusive club this year. And it’s estimated that this figure will grow to 3,800 by 2020, thanks to increased innovation in the technology sector and the continuing growth of emerging markets.
The current combined net worth of today’s billionaires is $7.29 trillion, which represents almost ten per cent of global GDP. This averages out to each being worth $3.1 billion, which is more than 4% more than in 2013. But the change has been uneven. Almost a third of the world’s net growth was in Asia, where this year has seen 52 of the new billionaires appear. Of these, 33 are in China, which now has the second largest number of billionaires of any country, at 190. As was revealed recently, though, that may change in the years ahead, as a significant number plan to live abroad (see Chinese HNWIs Say They Want to Live Abroad, https://orcap.co.uk/chinese-hnwis-say-they-want-to-live-abroad/).
The survey suggests that the world’s billionaires tend to congregate in a few places. More than one third of them live in just 20 cities around the globe. New York boasts more than anywhere else, with 103, then comes Moscow with 85, just ahead of Hong Kong on 82. London is ten behind on 72, and in fifth place is Beijing, with 37. However, if one considers ownership of residential property, then the figure for London can be more than doubled.
The most common area where billionaires have made their fortunes is in finance, banking and investment. Some 20% have made their money here. Next come industrial conglomerates, with around 12%. The other significant fields are real estate; non-profit and social organisations; and textiles, clothing and luxury goods.
The favoured place for keeping their wealth is in private holdings; about half of the billionaires’ money is kept there. Around 29% is in public holdings, and 19% – a little over half a billion – is kept as cash in the bank. Perhaps surprisingly, only 5% is in real estate and other luxury assets.
What this survey also shows is that the world of the billionaire is largely a man’s world. This is not just because women account for just 286 of the total, but also because two thirds of those women inherited their wealth. This compares with only 13% of their male counterparts who obtained their money in this way. The women, though, are on average three years younger than the men; and as women tend to live longer than men anyway, it seems that they should be able to enjoy their wealth for longer!
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