In 2024, the financial landscape for billionaires was marked by significant shifts as tech stocks surged and retail sectors faced hurdles.
In a year defined by remarkable gains across major stock indices, the S&P 500 escalated by 25% and the Nasdaq experienced a 33% hike. This uptick primarily benefited billionaires with investments in these indices, especially those embedded within the booming tech industry. An analysis by the Bloomberg Billionaires Index, as of December 27, highlighted that the top five wealthiest individuals from the tech sector collectively amassed an astounding $542 billion increase in net worth.
Elon Musk leads the chart, with his net worth soaring to $468 billion, an increase driven by a post-election surge following Donald Trump’s win. Musk’s wealth predominantly stems from Tesla and SpaceX, with Tesla’s stock alone witnessing a 70% rise despite slowing electric vehicle sales. SpaceX has likewise doubled in value, boosting investor confidence in Musk’s ventures due to his advisory role to the president-elect.
Meanwhile, Mark Zuckerberg saw a substantial gain, enriching himself by $85 billion. As Meta’s largest shareholder, Zuckerberg’s wealth grew alongside the company’s ad success and AI advancements, resulting in a 70% increase in its share price. This year also marked Meta’s first dividend payout.
Moreover, Nvidia’s CEO, Jensen Huang, emerged as a notable new centibillionaire, thanks to the company’s 175% surge in stock value. Nvidia’s dominance in the AI chip market has been pivotal in this financial leap. Similarly, Oracle’s Larry Ellison, whose wealth is now $193 billion, experienced a 60% increase in his company’s stock value due to its AI-focused cloud applications.
Jeff Bezos remains a formidable figure in the tech world, with his net worth swelling by $69 billion. Amazon’s strategic pushes in e-commerce and cloud computing, coupled with a 45% stock rise post-election, have solidified Bezos’ financial standing.
Conversely, not all sectors mirrored this ascent. Bernard Arnault, the CEO of LVMH, experienced a stark $31 billion loss due to the luxury industry’s struggles, especially in China, which faced economic challenges. Arnault’s significant stake in LVMH has made him the biggest ‘wealth loser’ among billionaires this year.
The list of billionaires facing downturns includes Françoise Bettencourt Meyers, who saw a $25 billion reduction in her wealth linked to a decline in L’Oréal’s sales in China. Similarly, Carlos Slim’s net worth fell by $23 billion, attributed to América Móvil’s declining stock.
Chinese entrepreneur Colin Huang faced a $17 billion drop in his wealth, predominantly due to a 30% decline in Pinduoduo’s stock value, amid changing consumer trends and geopolitical uncertainties. Finally, Francois Pinault’s ties to the luxury sector, through Kering, saw his wealth decrease by $14 billion as the company struggled, mirroring the broader luxury market’s downturn.
2024 highlighted a stark contrast in fortunes among billionaires, driven largely by the highs of the tech sector and the lows of luxury retail. This year underscored how shifts in global markets and industry-specific trends dramatically impacted wealth distribution among the world’s richest individuals.
Source: Businessinsider – Instagram
