New report shines some light on today's billionaires' investments
North American billionaires are leading the world in wealth generation, growing their already enviable fortunes faster than their global peers.
A new Billionaire Ambitions report from UBS shows that total billionaire wealth globally grew 121% between 2015 and 2024 to a total of US$14 trillion. But much of the growth in percentage terms occurred pre-pandemic with a 10% annual rate, while this tumbled to just 1% from 2020 to 2024.
However, although Chinese billionaires’ wealth more than doubled in the five years before the pandemic, it has decreased from $2.1 trillion in 2020 to $1.9 trillion in 2024. But for North American billionaires, their wealth has grown 58% from $3.8 trillion in 2020 to $6.1 trillion in 2024. Western Europeans have also seen growth in the last four years, but at a slower pace ($2.1 trillion in 2020 to $2.7 trillion in 2024).
Across the Americas region, the number of billionaires grew from 867 to 973 and their wealth increased 26.9% to $6.5 trillion, with 835 of them in the United States. US billionaires also accrued the greatest gains in 2024, rising 27.6% to $5.8 trillion and accounting for more than 40% of billionaire wealth worldwide.
Billionaires see North America as the top region for investment opportunities in the near and medium term, with 80% favoring it over the next 12 months and 68% over five years.
So, what’s driving the gains for North American billionaires?
Technology has played a key role globally and in the 2015-2024 period of the report, tech billionaires’ wealth has grown the fastest of any sector, tripling from $788.9 billion in 2015 to $2.4 trillion in 2024, such as Elon Musk who may become the world’s first trillionaire.
The drivers have changed though, with new billionaires in the early years mostly focused on ecommerce, social media, and digital payments, while now AI, cybersecurity, fintech, 3D printing, and robotics are the key industries fuelling gains.
Industrials remain an important sector too, especially the green economy transition, but also aerospace, defense and electric vehicles.
Favoured assets?
Across the 2,500 global billionaires included in the study, UBS found that 43% of billionaires intend to increase their exposure to real estate and 42% to developed market equities over the next 12 months.
But a similar share intends to increase exposure to gold and other precious metals while 31% are set to boost cash holdings.
Asked about alternatives, 38% still intend to increase their direct private equity holdings, only 28% plan to raise private equity funds / funds of funds holdings, with 34% planning to decrease them. More than a quarter plan to boost investment in infrastructure and a third plan the same for private debt with slightly more favouring arts and antiques.
However, the study also reveals that billionaires face greater challenges including geopolitics that may disrupt trade. Risk takers are likely to thrive so long as they do so smartly, combined with business focus and determination.
Financial planning will also need to be done smartly, with families of billionaires often not all located in the same part of the world and some billionaires relocating for geopolitical or other reasons.
