Wealthiest people: tech is taking over - July 25, 2018
Mark Zuckerberg, the founder of Facebook, overtook Warren Buffet as the third richest person of the world. This means that for the first time in history, the three wealthiest people are all from the tech world. But not only founders do good: US-based tech companies are skyrocketing just as well.
Facebook founder Mark Zuckerberg became the third richest person of the world, writes Bloomberg. He overtook the legendary investor Warren Buffet. Zuckerberg now has a wealth of $81.6 billion, which is $373 million more than the investor has.
Zuckerberg’s sudden rise is strangely connected to Facebook’s data scandal. After the Cambridge Analytica scandal broke out, Facebook’s stock prices fell. At the end of March, stocks hit an 8-month low at $152. But investors didn’t lose their faith in Facebook for long. Following the first rule of investing, they started to buy low, and prices soon rocketed. Now Facebook is around $203.
This helped Zuckerberg’s personal wealth rise as well. After taking Facebook public in 2012, Zuckerberg kept 17% of the company to himself. This means that if stocks do good, the founder’s wealth is doing good just as well.
Tech people take the lead
With Zuckerberg’s ascent now the 3 richest men on earth made their wealth from technology. Amazon’s Jeff Bezos is the first for a while now, (at the time of writing this post) he has $150 billion. That is more than Bill Gates ever had. Talking about the Microsoft co-founder: he has $94 billion, even with constantly donating to charity.
It’s also interesting to know that he has less than a 1% share in Microsoft now, as he sold his stake in the company. He keeps his wealth – among other things – in a mixed portfolio of stocks and other assets. Jeff Bezos’ wealth on the other hand is in close connection with Amazon. He owns 17% of the company, which means 80 million stocks. This leads to the same situation as with Zuckerberg: if Amazon does good, so does Bezos.
IT companies are also growing
This crazy growth is not only about people: American tech companies are also doing really great in the last decade. As we wrote about it just some weeks ago, 6 of the 10 most valuable brands of the world are from the US and in the IT industry. A fifth of the top 100 brands are also connected to tech.
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By market capitalization, all the top 5 companies of the world are in tech. Facebook, Microsoft, Google, Amazon and Apple are all from the US just as well. If we look at the top 10, tech’s dominance can still be seen: the 6th and 7th most valuable corporations are also internet companies, they are from China, though.
Disclaimer: This analysis is for general information and is not a recommendation to sell or buy any instrument. Since every investment holds some risk, our main business policy is based on diversification to minimize threats and maximize profits. Innovative Securities’ Profit Max has a diversified portfolio, which contains liquid instruments. This way, our clients can maintain liquidity, while achieving their personal investment goals on the long term.