The loss in Elon Musk’s wealth was close to $62 billion. The decline in Jeff Bezos’ wealth was around $63 billion. The value of Mark Zuckerberg’s business dropped by more than half.
The 500 richest people on earth collectively lost $1.4 trillion in the first half of 2022, the worst six-month decrease in the history of the billionaire class. In contrast to the previous two years, when governments and central banks unleashed previously unheard-of stimulus measures in the wake of the Covid-19 outbreak, boosting the value of everything from online businesses to cryptocurrency, the ultra-wealthy rich’s soared.
Some of the most highly-flying stocks — and the billionaires who own them — are rapidly losing altitude as a result of policymakers hiking interest rates to combat high inflation. In the three months ending in June, Tesla Inc. had its worst quarter ever, while Amazon.com Inc. experienced its worst decline since the dot-com bubble burst.
Though the losses are piling up for the world’s richest people, it only represents a modest move toward narrowing wealth inequality. Even if the losses are increasing for the world’s wealthiest people, it only amounts to a slight reduction in wealth inequality. According to the Bloomberg Billionaires Index, Tesla co-founder Musk still has the highest wealth in the world with a net worth of $208.5 billion, followed by Amazon CEO Bezos with a $129.6 billion wealth.
According to the Bloomberg index, Bill Gates comes in second place with $114.8 billion, followed by France’s richest man, Bernard Arnault, worth $128.7 billion. Only these four are worth more than $100 billion; at the beginning of the year, ten people globally exceeded that sum, including Mark Zuckerberg, who is currently ranked 17th in terms with $60 billion.
The crypto pioneer Changpeng Zhao, who estimated net worth was $96 billion when he first appeared on the Bloomberg Billionaires Index in January, has seen his wealth decline by roughly $80 billion this year due to the upheaval in digital assets.
According to Thorne Perkin, president of Papamarkou Wellner Asset Management, the billionaire class still has amassed so much wealth that not only can the vast majority survive the worst first half for the S&P 500 Index since 1970, but they are also probably looking for bargains.
Perkin observed that “Often their mindset is a bit more contrarian” When there is trouble on the streets, many of our clients look for possibilities.
In some of the most troubled areas of the global financial markets, that was true in the first half of the year.
In the wake of Vladimir Putin’s invasion of Ukraine, Vladimir Potanin, the richest man in Russia with a $35.2 billion fortune, purchased the whole share Societe Generale SA held in Rosbank PJSC earlier this year. Additionally, he paid a tiny fraction of what the stake in a virtual bank had cost to buy out sanctioned Russian businessman Oleg Tinkov.
Sam Bankman-Fried, the CEO of the cryptocurrency exchange FTX, purchased a 7.6 % in Robinhood Markets Inc. in early May after the share price of the app-based brokerage fell by 77% from its eagerly anticipated initial public offering in July of last year. Additionally, the 30-year-old billionaire has been serving as a lender of last resort for a few struggling cryptocurrency businesses.
The most high-profile buyout of all belonged to Musk, who reached a $44 billion deal to buy Twitter Inc. He offered to pay $54.20 a share; the social-media company’s stock traded at $37.44 at 10:25 a.m. in New York.
The world’s richest man said in an interview with Bloomberg News Editor-in-Chief John Micklethwait last month that there are “a few unresolved matters” before the transaction can be completed. “There’s a limit to what I can say publicly,” he said. “It is somewhat of a sensitive matter.”