By Bilal Hafeez 21-11-2019
In: podcasts | Business & Technology

The Billionaire Effect (The Bulletin with UBS)

(20 min listen)
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Summary (You can listen to the podcast by clicking here)

• 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.