Why billionaires are losing part of their wealth

[ad_1]

Elon Musk and Mark Zuckerberg are among billionaires who have posted record losses. Elon Musk REUTERS/Mike Blake Some of the richest people in the world have seen their personal wealth plummet recently. But what is behind the drop in their fortunes? Last week Tesla and SpaceX billionaire Elon Musk broke the world record for the biggest personal loss in history. From November 2021 to December 2022, he lost an estimated $165 billion, according to Guinness World Records. The numbers are based on data from Forbes magazine, but Guinness said other sources suggested Musk’s losses could have been greater. READ ALSO: Luiza Trajano returns to Forbes’ global list of billionaires Who is Gautam Adani, Indian tycoon who lost R$ 42 billion in one day Jorge Paulo Lemann loses US$ 329 million in one day with Americanas shares At the end of last year, the founder of the Meta group, Mark Zuckerberg, even fell out of the list of the 10 richest people in the world. He was on that list for seven years. Another billionaire who saw his personal fortune plummet was Gautam Adani, who also dropped out of the list of the 20 richest people in the world. The tycoon leads the Adani group, of infrastructure and logistics. What happened? The personal fortune of the three billionaires is directly linked to the groups they lead, as they are major shareholders. In the case of Musk and Zuckerberg, the problem was a kind of “crash” in tech stocks. Mark Zuckerberg REUTERS/Erin Scott At the end of last year, the Meta group announced the layoff of 11,000 people. Zuckerberg said the layoffs were driven by huge expectations for long-term growth based on the company’s increased revenue during the pandemic. “Many people predicted that we would be in permanent acceleration,” he wrote at the time. “I thought so too, so I made the decision to significantly increase our investments.” Instead, he said the “macroeconomic downturn” and “increased competition” had caused revenue to be much lower than expected. “I misread the scenario and take responsibility for that,” he said. Who is billionaire Gautam Adani In Elon Musk’s case, Tesla’s stock value plummeted after the billionaire bought Twitter last year. The $44 billion acquisition of the social media company has raised fears among investors that Musk is no longer giving Tesla enough attention. Gautam Adani’s case is linked to allegations of fraud. On January 24, a US company accused the group of stock manipulation and accounting fraud. The company’s quotation on the markets fell by almost half. The Adani Group denies the allegations, calling them “malicious” and “baseless”. But the fortunes of many of these billionaires can be quickly reversed, precisely because of the stock market. On Thursday, Mark Zuckerberg’s fortune increased by US$ 12.5 billion in just one day – after the release of results from the Meta group that showed the company’s recovery in the last quarter.

[ad_2]

Source link