Global rich list changes

 Global rich list changes

The epidemic situation makes luxury goods giant fall into the altar

Bernard Arnault, the chief executive of luxury goods giant LVMH, has lost $25 billion in wealth this year, with a net worth of $80.2 billion, dropping to fifth place in the world on the list of the richest people, while Murray an, an Indian businessman and CEO of Reliance Industries, an energy giant, surpassed him Mukesh Ambani. With a net worth of $80.6 billion, Ambani became Asias richest man.

LVMH group owns many luxury brands including Louis Vuitton and Dior. In recent years, with the successful acquisition of baogeli and other brands, LVMHs revenue has greatly expanded, and its share price has soared all the way, which makes Arnold quickly become the top of the global rich list.

In November last year, Arnold surpassed Microsoft founder Bill Gates for the first time on the global rich list, becoming the second richest person in the world after Bezos. At that time, Arnolds net wealth reached $107 billion, only $5.2 billion less than Bezos.

The novel coronavirus pneumonia epidemic has been the main reason for the Arnotts wealth to shrink significantly in the past six months. As of August 11, LVMHs share price was still hovering around 370 euro as of August 11.

Affected by the epidemic, LVMHs second quarter financial report last month showed that the groups sales fell 27% to 18.4 billion euro compared with the same period last year, and its net profit plummeted 84% to 522 million euro. Among LVMHs five major sectors, including fashion and leather products, wine and spirits, the watch and jewelry division suffered the largest decline, recording a loss of 17 million euro in the second quarter, and revenue fell nearly 40% from a year earlier.

Ambanis success is also due to his seizing the opportunity to transform his energy company into an Internet enterprise. Now Ambani is also the dominant player in Indias telecommunications market, and he has invested $5.7 billion in Facebook.

Apple becomes the Savior of Warren Buffet

According to data from novel coronavirus pneumonia, the fortune of 100 fortune entrepreneurs in the world lost 2 trillion and 600 billion yuan in the past two months and 13% of the wealth, which is equivalent to the total wealth created by the past two and a half years. Among them, LVMH and Arnott, the legendary investor of the United States, suffered the most losses from the loss of WarrantBuffet.

Mr. Buffetts net worth is just over $79 billion, according to the latest data from the company. Last month, Mr. Buffett was overtaken by Elon Musk, Teslas CEO; Steve Ballmer, the former Microsoft CEO, had a net worth of $76 billion.

But with Apples stock soaring, Buffetts wealth soon caught up with musk. On August 8, Berkshire Hathaway, a subsidiary of Warren Buffett, released its second quarter results, showing that its net profit increased 86% year-on-year to 26.3 billion US dollars, which means an average daily profit of 300 million US dollars, and Berkshires cash reserves reached 146.6 billion US dollars, a new record.

In recent years, the highlight of Mr. Buffetts investment is to increase the position of apple. So far this year, Mr. Buffett has made nearly $40 billion from apple. More than 70% of the companys stock investment is concentrated in four companies, including apple, Bank of America, Coca Cola and American Express.

At the end of the second quarter, Berkshire held $91.5 billion in Apple shares, up from $63.8 billion at the end of the first quarter.

Apples annual revenue last year was $260 billion, ranking 12th among the Fortune 500 just announced. At present, Apple has surpassed Saudi Aramco to become the highest market value enterprise in the world.

Facebook ranks 144th in the global Fortune 500 with an annual income of $70.7 billion. At present, Facebook has a market value of more than $764.7 billion.

The rapid growth of Internet companies has raised concerns about the possible occurrence of the second Internet bubble. But Wang Xin, partner of consulting firm Roland Berger, told first finance and economics reporter: I dont have this worry. The development path of Internet enterprises is very clear. Now, a growth trend and direction is the digitization of 2B (for enterprises), which is full of opportunities.

The worlds rich have turned their eyes to space

The top two on the global rich list are still Amazon founder Jeff Bezos and Microsoft founder Bill Gates. Bezoss net worth has soared by $74 billion this year to close to $200 billion, far ahead of gates, the second largest. Gates has a net worth of more than $100 billion, higher than Zuckerberg.

Most of Bezoss wealth is connected to Amazon. According to US Securities and Exchange Commission documents, Bezos has cashed $7.2 billion on Amazon this year. After novel coronavirus pneumonia outbreak, the demand for online shopping and cloud services has increased, Amazons stock price has risen more than 70% so far this year.

Bezos spent $165 million to buy Warner manor this year, setting a record for residential sales in Los Angeles. The late Warner Brothers, based in the 1930s, was designed for Warner Brothers Warner in an area of about 60000 square meters.

In the second quarter of this year, Amazons sales increased by 40% to 88.9 billion US dollars, with an operating profit of 5.8 billion US dollars and a net profit of 5.243 billion US dollars, a year-on-year increase of 100%.

What is the difference in the realm of the man with the wealth? Both musk and Bezos have moved their eyes away from the earth, looking further into space.

Bezos has previously said he plans to sell Amazon shares worth about $1 billion a year to fund his commercial space company Blue origin. I think its very important for the earth, and its a question Ive been thinking about all my life about whether future generations can live on another planet. Bezos said on a CBS television program.

Bezos also said that when he was a child, he had a strong interest in exploring space when he saw American astronauts Baz aldrin and Neil Armstrong landed on the moon.

In space exploration, musk has won the lead. The success of SpaceXs first commercial manned space mission boosted Teslas share price, allowing musk to invest more money in space exploration.

Musk has announced that SpaceX will launch the Starlink star chain project, which aims to launch 12000 communication satellites into orbit to provide broadband Internet services for users on earth. Currently, SpaceX is ready to launch the 10th batch of Internet satellites. Kuiper, Bezos satellite networking project, also plans to send more than 3000 satellites into low earth orbit to provide broadband network services.