Creation, preservation and legacy of great wealth in a second “Gilded Age”
This week, UBS and PwC launched the 2015 Billionaires Report, entitled “Billionaires: Master architects of great wealth and lasting legacies”.
During the past 35 years, billionaires have created extraordinary wealth on a scale not seen since the “Gilded Age” at the beginning of the 20th century. The report examines the differences between wealth creation, preservation and philanthropic practices among billionaires across the US, Europe and Asia.
Based on a survey of 1,300 billionaires and face-to-face interviews with more than 30 billionaires, it analyzes data from the last 19 years across the 14 largest billionaire markets, accounting for 75% of global billionaire wealth. The key findings of the report are:
- The majority of the world’s billionaires – with US technology and finance entrepreneurs leading the way – have made their wealth in the past 19 years, creating more than USD 3.6 trillion. Asia’s new industrialists, consumer product tycoons and real estate investors have also participated in generating wealth.
- Self-made billionaires tend to start their first businesses when they are relatively young, typically by the age of 40. Furthermore, most hold a college degree.
- Many billionaires share distinct personality traits, in particular, an appetite for clever risk-taking, business focus and determination.
- Safeguarding their legacies is a priority for many of the world’s billionaires, almost two-thirds of whom are over the age of 60. As a result, some are establishing sophisticated structures such as family offices to plan for the long term and facilitate the transfer of wealth.
- The world’s billionaires have a growing interest in philanthropy. Many billionaires in the US have already pledged more than half their wealth to philanthropic causes. Billionaires elsewhere are also expected to increase their philanthropic activities.
- Wealth creation is likely to decelerate and level off, as the opportunities that have enabled great wealth creation come to an end. Looking ahead, the center of wealth creation is expected to shift from the US to Asia.
Commenting on the report, Joe Stadler, Head Global Ultra High Net: “At UBS, we serve more ultra-high worth individuals than any other bank; indeed we have a relationship with something like two thirds of the billionaires on the planet. So if they are changing, we need to change too; the better we understand them, then the better solutions we can provide.”
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