The term “self-made” has taken a back seat in the realm of billionaires under the age of 30, as all current members of this elite group have inherited their fortunes, heralding the onset of a colossal $5.2 trillion generational wealth transfer. This revelation stems from recent research by Forbes magazine, which identified 15 billionaires in this youthful bracket, all of whom owe their staggering net worth to the prosperity bequeathed by their predecessors.
This wave of wealth transfer underscores a broader trend where inheritances outpace wealth generated by new entrepreneurship. UBS reports that of the 137 individuals who joined the billionaire ranks in the 12 months leading to April, 53 inherited a staggering $150.8 billion in aggregate, surpassing the $140.7 billion carved out by 84 newly self-made billionaires.
The figures are stark: in Asia-Pacific, inheritors boast an average wealth of $2 billion compared to entrepreneurs’ $1.6 billion. This disparity is even more pronounced in Europe, the Middle East, and Africa, where heirs’ average wealth of $4.4 billion doubles that of their self-starting counterparts. In the Americas, the pattern holds, with inheritors’ wealth tallying at $2.2 billion against entrepreneurs’ $1.5 billion.
The Swiss bank UBS, favored by the ultra-wealthy, indicated, “During the next 20 to 30 years, over 1,000 of today’s billionaires are likely to transfer more than $5.2tn to their heirs.”
Some illustrative examples of this burgeoning inherited wealth include the Del Vecchio siblings—Leonardo Maria, Luca, and Clemente—who became billionaires after inheriting a 12.5% share in the family’s Luxembourg-based holding company Delfin, which itself owns nearly a third of EssilorLuxottica, the powerhouse behind Ray-Ban and Oakley.
Livia Voigt, at 19 years old, is now the world’s youngest billionaire with a $1.1 billion fortune, derived from a 3.1% stake in WEG Industries, a Brazilian electrical equipment producer, founded by her grandfather. Her sister, Dora Voigt de Assis, joins her on the list of billionaires.
The Mistry brothers, Firoz and Zahan, inherited their vast wealth after their father, Cyrus Mistry, chairman of Tata Sons, passed away. Each brother received a 4.6% stake in the conglomerate, which includes the iconic Jaguar Land Rover brand.
The UBS research indicates a staggering $70 trillion is expected to be passed down over the next two decades, potentially marking millennials as the richest generation in history.
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– All billionaires under 30 have inherited their wealth, research finds | Rich lists
– No billionaire under 30 has earned their wealth, they amassed wealth through “the great wealth transfer”, WION, Wed, 03 Apr 2024 21:45:48 GMT
– Next generation of billionaires collect more wealth from inheritance than work, says UBS, The Guardian, Thu, 30 Nov 2023 08:00:00 GMT
– Billionaires amass more through inheritance than wealth creation, says UBS, Financial Times, Thu, 30 Nov 2023 08:00:00 GMT