The President of Dangote Group and Africa’s richest person, Alhaji Aliko
Dangote lost $4.9 billion or one-third of his
wealth, as the combined
effect of falling oil prices and the naira devaluation in June pushed
him to the 112th richest person in the world with a net worth of $10.4
billion, the latest Bloomberg Billionaires’ Index released yesterday has
revealed.
According to the index, Dangote was the world’s 46th-richest person as of June this year.
However, the report pointed that in a year when populist voters reshaped power and politics across Europe and the United States, the world’s wealthiest people were ending 2016 with $237 billion more than they had at the start.
However, the report pointed that in a year when populist voters reshaped power and politics across Europe and the United States, the world’s wealthiest people were ending 2016 with $237 billion more than they had at the start.
Triggered by disappointing economic data
from China at the beginning, the U.K.’s vote to leave the European Union
in the middle and the election of billionaire Donald Trump at the end,
the biggest fortunes on the planet whipsawed through $4.8 trillion of
daily net worth gains and losses during the year, rising 5.7 per cent to
$4.4 trillion by the close of trading December 27, according to the
Bloomberg Billionaires’ Index.
“In general, clients rode through the
volatility,” said Simon Smiles, chief investment officer for
ultra-high-net-worth clients at UBS Wealth Management. “2016 ended up
being a spectacular year for risk assets. Pretty remarkable given the
start of the year.”
The gains were led by Warren Buffett, who added $11.8 billion during the year as his investment firm, Berkshire Hathaway Inc. saw its airline and banking holdings soar after Trump’s surprise victory on November 8.
The gains were led by Warren Buffett, who added $11.8 billion during the year as his investment firm, Berkshire Hathaway Inc. saw its airline and banking holdings soar after Trump’s surprise victory on November 8.
Buffett, who’s pledged to give away most
of his fortune to charity, donated Berkshire Hathaway stock valued at
$2.6 billion in July.
The U.S. investor reclaimed his spot as the world’s second-richest person two days after Trump’s victory ignited a year-end rally that pushed Buffett’s wealth up 19 per cent for the year to $74.1 billion.
The U.S. investor reclaimed his spot as the world’s second-richest person two days after Trump’s victory ignited a year-end rally that pushed Buffett’s wealth up 19 per cent for the year to $74.1 billion.
“2016’s been event-driven with global
news driving prices rather than fundamentals,” president of Ascent
Private Capital Management, which has about $10 billion of assets under
administration, Michael Cole said.
“The belief that Trump is going to come in and deregulate big parts of the economy is driving the markets right now.”
The individual gains for the year were dominated by Americans, who had four of the five biggest increases on the index, including Microsoft Corp. co-founder Bill Gates, the world’s richest person with $91.5 billion, and oilman Harold Hamm.
The individual gains for the year were dominated by Americans, who had four of the five biggest increases on the index, including Microsoft Corp. co-founder Bill Gates, the world’s richest person with $91.5 billion, and oilman Harold Hamm.
The country’s richest were largely
opposed to a Trump presidency during the election, including Dallas
Mavericks owner Mark Cuban, who told the media in May that stocks could
fall as much as 20 per cent if Trump were to win the election.
U.S. billionaires — including Buffett —
favored Trump’s rival Hillary Clinton. Still, they profited from his
victory when they added $77 billion to their fortunes in the
post-election rally fuelled by expectations that regulations would ease
and American industry would benefit.
The New York real estate mogul is
building a cabinet heavy on wealth and corporate connections, and light
on government experience, a mix that hedge fund billionaire Ray Dalio
said last week would unleash the “animal spirits” of capitalism and
drive markets even higher. Dalio is the world’s 63rd-richest person with
$14.1 billion.
Investors and executives welcomed Trump’s
picks, including billionaire Wilbur Ross to lead the Department of
Commerce and former Goldman Sachs Group Inc. executive Steven Mnuchin as
his Treasury secretary, who have a combined net worth of at least $5.6
billion, according to the index.
Gates remained the world’s richest person
throughout the year. Amancio Ortega, Europe’s richest person and
founder of the Zara clothing chain, was in second place on the index for
most of the year until he ceded it to Buffett in November. Ortega, who
dropped $1.7 billion in 2016, is the world’s third-richest person with
$71.2 billion.
Wildcatter Hamm’s fortune was propelled
by a strengthening oil price and expectations a Trump administration
will slash fossil-fuel regulations. Hamm added $8.4 billion to more than
double his fortune to $15.3 billion. He led the 49 energy, metals and
mining billionaires, who were the best-performing category on the
ranking, adding $80 billion and reversing the $32 billion fall they had
in 2015.
Billionaire brothers Charles and David
Koch each dropped $2 billion after Koch Industries reported on its
website that annual revenue is estimated to be “as high as $100
billion”, compared with the estimate of “as much as $115 billion” that
the conglomerate published on the site previously. Company spokesman Rob
Carlton stated in a November 17 e-mail that Koch revenue fluctuates
with the price of commodities.
Technology fortunes were the second-best
performing on the ranking, with 55 billionaires adding $50 billion to
their fortunes over the year, despite worries that a Trump presidency
might introduce policies that could hurt their companies.
Amazon.com Inc. founder Jeff Bezos, who
doubled his fortune to $60 billion in 2015, led gains among technology
executives again this year, rising $7.5 billion in 2016 on robust sales
growth at the online retailer. He was followed by Facebook Inc.
co-founder Mark Zuckerberg, who added $5.4 billion.
Some of the industry’s biggest relative
gains went to the founders of the world’s leading startups such as Uber
Technologies Inc.’s Travis Kalanick and Snap Inc.’s Evan Spiegel. The
so-called “unicorn” billionaires, which include Spotify Inc. co-founder
Martin Lorentzon, who was identified as a billionaire for the first time
in 2016, secured a series of mammoth funding rounds while moving closer
to testing their fortunes on the public markets.
Other billionaires uncovered by the
Bloomberg index in 2016 included the father and son behind Jose Cuervo
tequila, New York real estate developer Axel Stawski and Kosovo
construction tycoon Behgjet Pacolli.
The index also unveiled 11 surviving
family members of reclusive Thai entrepreneur Chaleo Yoovidhya, the
inventor of Red Bull, whose heirs share a combined $22 billion net
worth, the world’s largest energy-drink fortune. Three billionaires
emerged in Argentina, including the country’s first technology
billionaire Marcos Galperin, as markets rose on enthusiasm for President
Mauricio Macri’s finance-friendly economic policies.
China has 31 billionaires on the index
with $262 billion, trailing the U.S., which has 179 billionaires who
control $1.9 trillion, and Germany, whose 39 individuals have $281
billion. Russian billionaires also began to put the negative effects of
U.S. and European sanctions behind them, reversing the combined $63
billion declines for 2014 and 2015 and adding $49 billion in 2016.
Dangote Lost $4.9 Billion in 2016
Reviewed by Spencer Reports
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