• Experts from UBS and PWC discuss their annual billionaire report and cite the existence of the “Billionaire Effect”.
• Relative to non-billionaire peers, companies owned by billionaires were more successful, profitable, and better managed in the long run.
• Companies owned by billionaires on average have outperformed the MSCI world index in the last 9 years by 4.5%.
• Post-IPO performance of these companies have generated twice the returns relative to peers.
Why does this matter? There’s clearly a public backlash against the top 1% (or top 0.1%), but this work shines a rare light on their more positive aspects. This could be problematic for politicians wishing to appeal to populist sentiment – by attacking billionaires they may end up damaging other areas of the economy unintentionally.
For access to our Slack Chat Room, where we discuss all things markets with our researchers and subscribers