Skip to main content

Billionaires 1995-2014: their demographics, their volatility, their personality traits





The wealth of billionaires is ‘fleeting’ says a study of their demographics over the past 20 years. UBS Group AG and PwC published a joint report on billionaires from 1995 to 2014 on December 15 2015 called ‘The changing faces of billionaires’ (Finchannel.com, December 28, 2015). In 1995 there were 289 billionaires in the world. In 2014 there were 1,347 billionaires. The report details their demographics, their volatility in the business sector, and their personality traits.

The original group of billionaires and their volatility
The original 289 billionaires in 1995 were tracked. The report found that only 126 (44%) of them are still billionaires, showing the volatility of wealth over 20 years. The decrease was due to death, family splits, or business failures. Since 1995 there were 1,221 new billionaires bringing the current total to 1,347 in 2014.  The 126 continuing billionaires created 21% of the total wealth of all of the current billionaires, which means that their wealth increased over time – multiplying their wealth by a factor of 3.8 (outperforming the global GDP growth rate of 2.5).

Age and their challenge
Almost 66% of the current 2014 billionaires were over 60 years of age. Over 75% of current billionaires have two or more children. Therefore their challenge is to avoid wealth dilution as the following generations grow larger. This includes internal ‘politics’ and dynamics, as well as external forces, such as politics, taxes, global regulations, economic crises, and legal challenges.

Gender and their rise
The number of female billionaires has increased faster than the number of male billionaires over the 20 year period, growing by a factor of 6.6 compared to a factor of 5.2 for men. Asian females increased their growth more rapidly during the previous 10 years. In 1995 there were 3 Asian female billionaires and in 2014 there were 25. In Europe there were 21 female billionaires in 1995 and 57 in 2014, compared with 37 in America in 1995 and 63 in 2014.

Female billionaires are generally spearheading a family business – these include 96% in Asia, 63% in Europe, and 57% in America. Female billionaires are either in family businesses, philanthropic enterprises, or governance.

Female billionaires in Asia comprise 17% of the global female population and are generally younger than their global counterparts. In Europe and America, female billionaires are mostly multi-generational billionaires (93% in Europe and 81% in America). However, the younger female Asian billionaires are having a stronger role in their family business than previous generations of Asian females.

Sectors, strategies, and personalities
Of the 126 original billionaires in 1995, the sectors that prevailed included: (1) consumer and retail, (2) technology, and (3) financial services. These sectors remained strong throughout the 20 years, making 66% of the wealth. The technology sector in particular over 20 years has been the basis for the most enduring billionaires. Sectors that showed more volatility included: (1) industrials, (2) real estate, and (3) health industries.

The strategies for enduring wealth were: (1) adhering to the initial family business, (2) establishing strong governance, and (3) a clear family identity and culture. Particularly for family businesses, there was a strong strategic direction and long-term planning.


The report showed that there was no typical personality of the current billionaires. However, all showed a focus on building a lasting legacy for future generations. The report identified consistent personality traits as being essential to entrepreneurial success – for both genders. These three personality traits included: (1) smart risk taking, (2) an ‘obsessive’ business focus, and (3) dogged determination.
MARTINA NICOLLS is the author of:- The Shortness of Life: A Mongolian Lament (2015), Liberia’s Deadest Ends (2012), Bardot’s Comet (2011), Kashmir on a Knife-Edge (2010) and The Sudan Curse (2009).
Labels:

Comments

Post a Comment

Popular posts from this blog

2016 update on Rike Park, Tbilisi: from construction to busy park

From a flat patch of uninteresting dirt, Rike Park in Tbilisi, Georgia, has transformed in four years (from 2014-2016) into a busy park full of trees, flower beds, sculptures, fountains, and events. Rike (Rikhe) Park is on the left bank of the Mt’k’vari River (the Kura River) near the Old City of Tbilisi. The Peace Bridge links the right bank to Rike Park. Rike Park is below the hillside Presidential Palace and, via cable car, it is the starting point for the ride to Sololaki Ridge (with the Narikala Fortress and the Mother of Georgia statue). The glass box-shaped cable car terminus was opened on 23 June 2012, and since then the park has continually developed into a ‘people’s park’ where people can walk around, eat at the nearby restaurants, sit next to the statue of American president Ronald Reagan, climb the steps to Avlabari district, and access the sights of Meidan Square, the Peace Bridge, the Metekhi Church, the Old City, the waterfall, the sulphur baths, and t...
Post a Comment
Read more

The acacia thorn trees of Kenya

There are nearly 800 species of acacia trees in the world, and most don’t have thorns. The famous "whistling thorn tree" and the Umbrella Thorn tree of Kenya are species of acacia that do have thorns, or spines. Giraffes and other herbivores normally eat thorny acacia foliage, but leave the whistling thorn alone. Usually spines are no deterrent to giraffes. Their long tongues are adapted to strip the leaves from the branches despite the thorns. The thorny acacia like dry and hot conditions. The thorns typically occur in pairs and are 5-8 centimetres (2-3 inches) long. Spines can be straight or curved depending on the species. MARTINA NICOLLS is an international aid and development consultant, and the author of:- Similar But Different in the Animal Kingdom (2017), The Shortness of Life: A Mongolian Lament (2015), Liberia’s Deadest Ends (2012), Bardot’s Comet (2011), Kashmir on a Knife-Edge (2010) and The Suda...
1 comment
Read more

Hop on hop off bus tourism comes to Tbilisi, Georgia

City Sightseeing buses have arrived in Tbilisi. The iconic red double-decker buses, a feature of many cities around the world since the company was established in Seville, Spain in 1999, is now in six continents and almost 100 cities. The company established its Tbilisi business in November 2013, with its operations commencing in February 2014. The 90-minute tour stops at 11 major locations in Tbilisi (with 2 to 5 minute waiting times at each location): the Old City (where it commences), Freedom Square, Rose Revolution Square, Marjanishvili Square, the Dry Bridge, Konka, Avlabari, Metekhi, Akhundov Museum, the Sulfur Baths, and European Square. Passengers can hop off at any stop and see the sights, hopping back onto the next bus at any time. Alternatively, passengers can remain on the bus for the whole tour and take photographs when the bus stops at each location. There are one day (24-hour) passes (for 35 lari – about $20) and 48-hour passes for 55 lari, with family d...
2 comments
Read more