Warren Buffett is again among the world’s top five wealthiest persons. According to the Bloomberg Billionaires Index, the 91-year-old investor’s $117 billion fortune places him behind only Elon Musk, Jeff Bezos, Bernard Arnault, and Bill Gates in the worldwide wealth rankings.
Warren Buffett fortune has increased by $7.8 billion in 2022, compared to the other members of the top five, who have all lost money this year. Musk, the world’s richest man, has lost $62 billion, compared to $12.5 billion for Gates.
Surprisingly, it was the loss of wealth by others, rather than again in Buffett’s personal net worth, that propelled him back to the fifth position. Mark Zuckerberg’s fortune has plummeted by $54 billion as Facebook shares have been hammered this year. He had a net worth of more than $120 billion in January.
Other former top-ten tech executives, such as Google founders Larry Page and Sergey Brin, former Microsoft CEO Steve Ballmer, and Oracle founder Larry Ellison, would be ahead of Warren Buffett if their net worth hadn’t been slashed by the stock market’s decline this year.
Buffett’s Berkshire Hathaway stock has risen more than 7% so far this year, owing to the investor’s belief in diversity. Despite the fact that Apple accounts for 44% of Berkshire’s portfolio, which is down 10% this year, the company’s portfolio is well-diversified, allowing it to weather tech sell-offs.
Buffett has long advised investors to put their money into index funds, which carry all of the stocks in an index and are therefore automatically diversified. Apple, Coca-Cola, and Google, for example, are all represented in the S&P 500.
Buffett’s net worth has increased by $2.4 billion to $111.3 billion this year. He now has a $1 billion lead over Zuckerberg on the Bloomberg index and is at his best level since March.
Since the start of the year, value stocks have outperformed tech businesses and the S& P 500 Index, falling 4.2 per cent vs 9.2 per cent for the S& P and 15% for tech.
Buffett, 91, is the only person among the world’s top ten wealthiest people whose net worth has increased year over year. Berkshire Hathaway’s A shares, which account for 98 per cent of his wealth, have increased by 2.3 per cent since January 1.
Buffett’s continued participation among the top rungs of the billionaire’s index is especially noteworthy given the sums of money he’s contributed over the years: over $33 billion in Berkshire shares to the Bill & Melinda Gates Foundation since 2006. Only Gates, who is presently rated No. 4 in the world with a net worth of $127 billion, has given such large charity donations.
Berkshire Hathaway announced on Friday that it had purchased about 30 million more shares in Occidental Petroleum Corp., a Houston-based oil and gas firm. The sale, which was valued at around $1.6 billion at lunchtime Monday, helped his business reduce its near-record $146.7 billion cash pile.