Billionaires are “a different breed.” That’s the message from UBS/PwC in its 2019 Billionaire Report pointing to billionaire-controlled publicly traded companies outperforming the global equity benchmark by 8.7%.
He adds, “They [billionaires] are masters of risk-reward. They have the ability to take massive risks provided the outcome will [also] be massive. ... They are not afraid of failure. Many, many people on this planet are afraid of the downside. For [billionaires], the downside is an opportunity to buy.”
According to UBS, in the same period, 589 individuals became billionaires, increasing the membership of this elite club by “38.9% to 2,101 billionaire globally.” In the report, UBS cites the “social value” of a billionaire and the “significant positive social and environmental impact” generated by “billionaire entrepreneurs.”
Basically, billionaires can afford to invest in business strategy, when the mom and pops are just trying to keep the lights on
When you have a bigger safety net, you have the ability to take bigger risks. While a billionaire may lose millions or billions from a bad deal, at the end of the day most will be fine. Most of the working class simply can’t afford the risk.
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