How do millionaire entrepreneurs invest their money
Where the rich invest and what investors can learn from it
There are now a total of 2,352 billionaires around the world, with US $ 7.3 trillion (€ 5.9 trillion) they control about 4% of global wealth. Since 2013 alone, 155 new billionaires have joined, according to a recent study by Wealth-X (Billionair Census).
Most of the billionaires are in Europe (775), while North America (609) and Asia (560) also have the richest of the rich. The “billionaire capital” is New York with 103 billionaires.
Where the rich invest their money
Around 60 percent of billionaires such as Alibaba founder Jack Ma and Oracle boss Larry Ellison made their fortune by founding a private company and are therefore considered self-made billionaires.
Another 27 percent of billionaires made their fortune by reinvesting their money. Investors can learn from this by investing in the industries that the rich also invest.
The finance and investment industries make the most billionaires
Rich people often invest their money in certain industries. Above all, investment plays an important role in increasing wealth. The best example is the US star investor Warren Buffett, who is one of the richest men in the world with private assets of US $ 66.1 billion (€ 52.78 billion). Like Buffett, 20% of the rich made their fortunes in the financial industry.
But other industries also play an important role. Around 12.1% of billionaires made their living by participating in industrial conglomerates and setting up industrial companies. The best example here is the German industrialist and billionaire Susanne Klatten, who with around € 11 billion is one of the richest women in the world.
About 7.1% of the super-rich come from the real estate sector. The best example here is real estate mogul Donald Trump, the business magazine Forbes estimates Trump's assets at US $ 3.9 billion (€ 3.11 billion).
Fashion and luxury are popular investments among the rich
But the fashion and luxury goods industries have also produced a number of billionaires in recent years. These include the French entrepreneur Bernard Arnault, who through his holding Groupe Arnault holds 70.4 percent of the shares in the fashion company Christian Dior and around 47 percent in the luxury group LVMH Moët Hennessy Louis Vuitton. Arnault's assets are estimated at around US $ 29.5 billion (€ 23.55 billion).
However, many super-rich also get involved socially and for charitable purposes and reinvest a large part of their wealth there. Examples include Microsoft founder Bill Gates and US investment legend Warren Buffett, who donated the majority of their assets during their lifetime (The Giving Pledge)
What investors can learn from the rich
Investment professionals and finance experts such as CNBC anchorman Jim Cramer advise investors to spread capital across multiple industries. Investors should spread the money across five sectors: technology, energy, health, retail and entertainment.
Cramer advises primarily on market leaders in the respective industries such as Apple (technology and consumer electronics) or the Alibaba Group (retail). It is important for investors not to bet everything on one card, but to spread them widely in order to minimize the risk of loss.
Alibaba: Internet giant reaches out to retailers Internet giant Alibaba is following in Amazon's footsteps: A mega-transaction is to secure access to Chinese retailers. > read more
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