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 … Continue reading UBS and PwC