UBS and PwC

The term “billionaire effect” denotes the tendency of billionaire-controlled companies to generate higher returns. Over the last 15 years, the annualized average returns of public billionaire-controlled companies have been almost twice as high as the performance of the broad equity market. Billionaire-controlled companies have delivered an annualized performance of 17.8%, clearly outshining the 9.1% of the MSCI AC World Index. Their return on equity of 16.6% over the last 10 years has also substantially exceeded the 11.3% that the MSCI AC World Index averaged.
The “billionaire effect” arises due to a combination of personality traits shared by most billionaires: smart risk-taking, business focus, and determination. Billionaires are exceptionally focused on their businesses, they have an appetite for smart risk taking, and their determination isn’t faltered by hurdles. They are far-sighted, thinking years ahead, conjuring up visions and devising roadmaps towards them. They run their enterprises similarly to family businesses and are dedicated to the pursuit of long-term strategies. As a result, billionaire enterprises often are at the forefront of innovation and creators of new business models.

Billionaires insights 2019 (summary)
Billionaires insights 2019 (full report)

2 thoughts on “UBS and PwC

  1. shinichi Post author

    The billionaire effect

    Billionaires insights 2019

    UBS and PwC (PricewaterhouseCoopers)

    Full report


    • Billionaire-controlled companies outperform the market
    • From long-term vision to smart risk taking
    • Transforming the business of global philanthropy
    • Five exceptional years close with a dip
    • The Athena factor revisited
    • The rise of tech’s titans
    • China’s volatility
  2. shinichi Post author




Leave a Reply

Your email address will not be published. Required fields are marked *