London Daily

Focus on the big picture.
Sunday, Jul 05, 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
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Royal Society Exhibition Highlights Growing Focus on Public Trust in Science
Energy Costs and Supply Chain Risks Continue to Shape UK Business Strategy
Rapid Rise in Artificial Intelligence Adoption Reshapes UK Corporate Operations, ONS Says
UK Businesses Turn Defensive as Economic Outlook Weakens, Institute of Directors Data Shows
UK Government Faces Criticism Over Late Extension of Pub Hours for England Match
Inquest Continues Into Death of Noah Donohoe as Jury Deliberates Findings
Calls for Stronger Wildlife Attraction Safety Rules After Crocodile Enclosure Injury
City Fire Under Control After Major Blaze Sends Smoke Across Urban Area
Police Investigation Continues After Officer Killed During Road Closure Duties
Blackpool Hotel Fined £120,000 After Electric Shock Incident Involving Child
Whistleblowers Allege Delays in UK Special Educational Needs Support Services
Calls Grow for Improved Support for UK Armed Forces Personnel Facing Health Conditions
Rising UK Energy Price Cap Increase Prompts Wider Concerns Over Household Pressures
UK Businesses Remain Concerned Over Global Conflict Risks to Supply Chains, ONS Finds
Office for National Statistics Reports Rising Adoption of Artificial Intelligence Across UK Businesses
Institute of Directors Reports Deepening Pessimism in UK Business Confidence Index
England Prepare for World Cup Round of 16 Match Against Mexico in Mexico City
Royal Society Summer Science Exhibition Concludes in London After Week-Long Showcase of Research
Silverstone Hosts British Grand Prix as Lando Norris and Lewis Hamilton Lead Home Crowd Expectations
Cornwall Van Dwellers Face Homelessness Risk as Council Tightens Enforcement
Police Investigate Stabbing of Iranian Journalist in London
Rare Copy of US Declaration of Independence Discovered in UK Archive
Department for Education Data Shows Persistent Literacy Gap Among Disadvantaged White Pupils
London Casino Faces Legal Action Over Alleged Tip Distribution Practices
England Records Hottest June on Record as Heatwave Disrupts Services Nationwide
UK Foreign Office Ends Overseas Education Programme for Women and Girls After Shortfall
UK Lawmakers Call for Urgent Action to Preserve Historic Outdoor Lidos
Police Criticise Extended Pub Opening Hours for England World Cup Fixture in Mexico
UK Safety Authorities Warn Parents Over AI-Generated Child Abuse Imagery Risks
Reform UK-Led Council Struggles to Attract Sponsors for Union Flag Promotion Scheme
OpenAI UK Investment Uncertainty Grows After Reported Setback on Stargate Data Centre Site
British Medical Association Warns of Severe Financial Crisis and Possible Staff Cuts
UK Devolution Debate Intensifies as Celtic Nations Prepare Breakup Contingency Plans
Starmer Signals Labour Transition as Burnham Emerges as Potential Successor
UK Government Consults International Partners on Maritime Trade Security and Energy Market Stability
Rare Revolutionary-Era Documents Discovered by UK Archives and Undergoing Authentication
UK Consumer Confidence Remains Deep in Negative Territory as Household Spending Stays Cautious
×