• 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.
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