London Daily

Focus on the big picture.
Friday, Feb 27, 2026

Companies run by billionaires are better for investors

Companies run by billionaires are better for investors

Billionaires tend to be good at making money for themselves. Buying into the companies they control could make the rest of us richer, too.

Shares in companies controlled by billionaires have significantly outperformed the global market average over the past 15 years, according to a new report from Swiss bank UBS (UBS) and auditing firm PwC.

To arrive at that conclusion, researchers analyzed the stock performance of 603 public companies in which billionaires have considerable sway and to which most of their wealth is tied.

The companies' annualized gain over the 15-year period was nearly 18% versus 9% for a broad stock index that tracks shares in 47 countries. The billionaire-controlled companies were also more profitable.

"The outperformance we call the 'billionaire effect' depends on the entrepreneur keeping control, irrespective of whether the business is public or private," the report said.


What makes billionaires special

The report found that billionaires tend to share three traits that make their companies successful: smart risk taking, business focus and determination.

Billionaire entrepreneurs have an "optimistic attitude," focusing on risks they understand and reducing them. They also constantly hunt for opportunities and are "undeterred by failures and roadblocks," it said.

"Billionaires' enterprises tend to pursue a long-term strategy that benefits from an exceptional alignment between performance and management incentives," the report added.

It found that close to 27 million jobs could be directly or indirectly linked to billionaire-controlled enterprises.


Billionaire wealth dips in 2018

Following years of growth, the "billionaire boom" experienced a "natural correction" in 2018 on a stronger dollar, market volatility and economic weakness, said Josef Stadler, an executive at UBS Global Wealth Management.

The number of billionaires fell by 57, with especially sharp declines in China and India. Only the Americas bucked the trend, lifted by the fortunes of US tech entrepreneurs. There were 89 US tech billionaires at the end of 2018, up from 70 in 2017.

Billionaires ended 2018 nearly 35% wealthier than five years earlier, owning a combined $8.5 trillion in assets. The number of women billionaires increased 46% over the same time period to reach 233, but that's only 11% of the total.


Tech is king


The net wealth of tech entrepreneurs has almost doubled over five years to $1.3 trillion, with the number of billionaire-controlled tech companies rising from 76 to 148.


Ten of the world's top 20 tech billionaires are from the United States and four are from China, including ByteDance founder Zhang Yiming.


Industrial entrepreneurs saw their wealth decline 15% to less than $609 billion against a backdrop of declining commodity prices.


Billionaires looking to grow their wealth are increasingly favoring direct private investments over listed equity markets, said Simon Smiles, an executive at UBS Global Wealth Management.


Billionaires and taxes


UBS cautioned that there could be negative consequences if billionaires are forced to pay higher taxes, a strategy that leading politicians in countries including the United Kingdom and the United States have suggested as a remedy for rising income inequality.


Democratic presidential candidate Elizabeth Warren wants to impose a wealth tax of 6 cents on every dollar of net worth above $1 billion and raise capital gains taxes. Jeremy Corbyn, the leader of Britain's opposition Labour Party, has said that "in a fair society there would be no billionaires."


Stadler warned against punitive taxes on billionaires, particularly those who are entrepreneurs. "Millions of jobs have been created by people who take outlandish risks. If you cap the upside, billionaires will manage their risk appetite downwards, [and] the impact will be detrimental to society," he told CNN Business.


The UBS banker acknowledged that wealth has become concentrated in fewer hands, but he said that concerns about inequality need to be balanced against what billionaires have achieved.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Reaches Framework Agreement on Release of Mandelson Vetting Files
UK Police Contracts With Israeli Surveillance Firms Spark Debate Over Ethics and Oversight
United Airlines Passenger Hears Cockpit Conversations After Accessing In-Flight Audio Channel
Spain to Conduct Border Checks on Gibraltar Arrivals Under New Post-Brexit Framework
Engie Shares Jump After $14 Billion Agreement to Acquire UK Power Grid Assets
BNP Paribas Overtakes Goldman Sachs in UK Investment Banking League Tables
Geothermal Project to Power Ten Thousand Homes Marks UK Renewable Energy Milestone
UK Visa Grants Drop Nineteen Percent in 2025 as Migration Controls Tighten
Barclays and Jefferies Among Banks Exposed to Collapse of UK Mortgage Lender MFS
UK Asylum Applications Edge Down in 2025 Despite Rise in Small Boat Crossings
Jefferies Reports Significant Exposure After Collapse of UK Lender MFS
FTSE 100 Reaches Fresh Record Highs as Major Share Buybacks and Earnings Lift London Stocks
So, what's happened is, I think, government policy, not just under Labour, but under the Conservatives as well, has driven a lot of small landlords out of business.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
From fears of AI-fuelled unemployment to Big Tech's record investment, this is AI Weekly.
Apple just dropped iOS 26.4.
US Lawmakers Seek Briefing from UK Over Reported Encryption Order Directed at Apple
UK Business Secretary Calls on EU to Remove Trade Barriers Hindering Growth
Legal Pathways for Removing Prince Andrew from Britain’s Line of Succession Examined
PM Netanyahu welcome India PM Narendra Modi to Israel
Shadow Diplomacy: How Harry and Meghan’s Jordan Trip Undermines the Monarchy
Sir Jim Ratcliffe, co-owner of Manchester United, comments on immigration in the UK.
Bill Gates, the UN and the WEF are attempting to construct "a giant digital gulag for all of humanity" via digital ID, CBDCs and vaccine passport infrastructure.
Britain’s Channel Crisis: Paying Billions While the Boats Keep Coming
Downing Street’s Veteran Deception Scandal
UK HealthCare Expands ‘Food as Health’ Initiative Statewide to Tackle Chronic Illness in Kentucky
Leonardo Chief Says UK Set to Decide on New Medium Helicopter Programme
UK Slows Chagos Islands Agreement After Concerns Raised in Washington
European and UK Stock Markets Reach Fresh Highs as Banks and Miners Lead Rally
UK Government Insists Chagos Islands Negotiations Continue After Minister’s ‘Pause’ Remark
No Confirmed Deal for Engie to Acquire UK Power Networks Amid Market Speculation
UK Reaffirms Updated Entry Requirements for Travellers as of February 25, 2026
General Atlantic to sell equity stake in ByteDance, valuing the company at $550 billion
German Chancellor Friedrich Merz Secures Pledge from China for Greater Imports of Quality Goods
Lord Mandelson Condemns Arrest as Driven by ‘Baseless Suggestion’ He Would Flee Abroad
Former UK Ambassador Released on Bail Following Arrest in Epstein-Linked Investigation
UK Parliament Orders Release of Former Prince Andrew’s Government Vetting Files
Reddit Fined £14 Million by UK Regulator Over Failures in Age Verification Controls
UK Moves to Tighten Regulation of Netflix, Disney+ and Prime Video Under New Media Rules
British Woman Who Reported Rape in Hong Kong Faces Possible Prosecution
'Christianity is the religion that has made this country great.'
Man Receives Parking Ticket 38 Years After Offense: ‘City Officials Said It’s Legitimate’
Woman Receives Gift Card for Christmas – Discovers It Is ‘Worth’ 63,000,000,000,000,000 Pounds
UK Sanctions New Zealand Insurer Maritime Mutual Following Allegations Over Russian Oil Cover
Reform MP Danny Kruger Condemns UK’s ‘Unregulated Sexual Economy’ in Call for Tougher Controls
The Show Must Go On: Prince William and Kate Middleton Shine at the BAFTAs Amid Andrew’s Arrest
UK Sanctions Russian ‘Illicit Oil Traders’ After Email Blunder Exposes Sanctions Evasion Network
Russia Amplifies Baseless Claims That UK and France Plan to Arm Ukraine with Nuclear Weapons
UK Imposes Sanctions on Two Georgian Television Channels Over Alleged Russian Disinformation
×