While global stock markets have been in pretty good shape over the past decade, billionaires have clearly beaten them.
That’s according to the 10th annual “Billionaire Ambitions Report” for 2024, released recently by UBS. At the top of that report was data showing that between 2015 and 2024, the total wealth of billionaires grew by 121% globally, from $6.3 trillion to $14 trillion. The bank compared this with the MSCI AC World Index, which has grown by 73% over the same time period. Incidentally, the S&P 500 SPX has gained about 77% over the same period.
Here’s their chart:
As for how those billionaires plan to hang on to that wealth, the UBS survey finds that those views on the asset class are changing as U.S. and euro zone central banks cut interest rates.
Over the next year, 43% of billionaires said they would increase their exposure to real estate, and 42% to developed market stocks. But they also want to increase investment in “notional havens from market storms”, with 40% intending to increase exposure to gold and precious metals, and 31% cash levels.
High net worth individuals remain interested in alternative investments, with 38% planning to increase direct private equity investments, although 28% plan to raise private equity funds/funds of funds and 34% want to reduce them. About 26% plan to increase investments in infrastructure, and 35% private debt. But 27% of billionaires surveyed cited plans to reduce their hedge fund investments versus 23% who want to increase that segment.
Also nearly a third, or 32%, want to invest more in art and antiques, a significant increase from 11% last year.
Many billionaires see the best opportunities in North America, with 80% preferring the region in the next 12 months and 68% in the next five years, citing technological innovation as well as energy security amid global volatility. Only 11% see more opportunities in China.
The wealth of North American billionaires, incidentally, 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 $6.1 trillion, it says UBS. The region also has the highest percentage of the top 100 billionaires – 43%, compared to 21% in Western Europe, 15% in Southeast Asia and 8% in China.
