Bill Gates reclaims his position as the top billionaire from Jeff Bezos, who won it in 2018 with a great net worth margin.
Who is the richest man on Earth? The race of being on the top of the list of the richest person is never-ending. Although, we are talking about the people who are billionaires already, whether they are on the first position or the second one, but getting the title of the richest man on Earth is still considered an honor for which the billionaires strive hard all around the year with new products and ideas.
This year, the two billionaires who had been competing for the top position on the billionaires’ list have been Bill Gates and Jeff Bezos. Both of them are the renowned names of the IT industry, and even both of them have been part of the list of the top 10 richest people from decades. So whom do you think topped the list? We guess this won’t be a surprise anymore with exclusive media coverage that this issue has already been getting. Our concern here is to discuss the reasons for the changes in the position as compared to the last list of billionaires released.
Bill Gates surpasses Jeff Bezos:
Bill Gates got the top position in the Bloomberg Billionaires Index 2019. What do you think is the net worth of this richest person on Earth? $110 billion! But it is not the monetary worth that is important here. The consequences that led Bill Gates to reach this position are more noteworthy. But before discussing them, let’s have a brief look at when did Bill Gates top this list prior to 2019.
Bill Gates was on the top of the list in 2018 last time:
Bill Gates lost the first position on the list in 2017 to Jeff Bezos when the net worth of Bezos reached $160 billion. At that time, it must have been a good glow to Gates because he had been the sole owner of this position for nearly 24 years. Yes, for 24 years, Bill Gates had been the richest individual.
How did Jeff Bezos come on the top initially?
The expansion of operations of Amazon and the investment of Bezos in some of the other sectors of the economy resulted in his overall worth to exceed $110 billion mark. He is even known to be the first person in modern history to cross this mark.
Bezos also had some shares of Google. It was back in 2004. Obviously, Google’s stock price made progress over time, and all of it was added to the net worth of the founder of Amazon.
Apart from that, he purchased Washington Post for $250 million. With the change of ownership, the reach of this newspaper has increased by manifolds, contributing to the revenue and profit that this business tycoon has generated. Even the price of the stock has increased a lot, providing an over 500% increase in the value to the stockholders.
The real estate sector is something that is already known for high returns, and when the business tycoons like Jeff Bezos enter the industry, they actually make the impossible amounts of profit and that too within the short spans of time.
Another business that became the reason for the propounding wealth that he currently has is the introduction of an unconventional business by the name of Blue Origin. Blue Origin is an aerospace manufacturer that wants to initiate the flights to space and other planets for tourism and residence purpose. Although this business idea would require a lot of effort to materialize, still the investment in the company and its future vision has improved the overall worth that Jeff Bezos is enjoying today.
How did he lose his position?
Despite the impressive growth in the worth of the companies he owns, this year, he had to lose his strongly held first position on the list of the top billionaires. What were the consequences leading to it? Actually, it wasn’t the role of one of the factors. Multiple decisions in the past few months resulted in the loss of wealth and overall ranking in the list of top billionaires of the world.
Firstly, his divorce is one of the major reasons that have created a huge setback to his net worth. He had to pay his wife alimony, which decreased his overall net worth. The amount of settlement actually made his ex-wife, Mackenzie Bezos, fourth on the list of the richest women of the world. But paying this huge made him number two on the list. Bill Gates surpasses Jeff Bezos. $38 billion settlement took place. Just additional information, Mackenzie declared to donate half of this wealth received.
Secondly, an increase in the net worth of Bill Gates has also been observed, which is also a contributor to the increase in the overall net worth of Bill Gates. The worth of Microsoft stocks went up by 48%. This improvement in the worth of Microsoft improved the worth of Bill Gates too. And he got a chance to get back to his top position. We are calling it his top position as he had been enjoying it from the past 24 years. So, that makes it technically HIS, isn’t it?
Thirdly, the $10 billion contract with Pentagon was won by Microsoft, and Amazon lost it. So, this rapid increase of $10 billion in the revenue of the company and its associated advantage in the share price also helped in the growth of the overall wealth of Microsoft and Bill Gates. And obviously, you know that winning such projects create more confidence of investors on the company and the end result we see is in the form of higher stock value.
What’s the current worth of both the entrepreneurs?
Currently, the owner of Microsoft, Bill Gates, has a net worth of $110 billion, whereas the owner of Amazon Jeff Bezos had a net worth of $108.7 billion. If you have noted that, the difference between both the richest persons of the world is quite thin. When we are talking about millions of dollars of project, this difference can actually be covered in months.
However, that would require the capitalization of the right opportunities at the right time. Both the tech giants are known for the right moves that they have made over time. So, it is most likely that we’ll see Jeff Bezos on the top of the richest person in 2019 within a few months.
When did both of these leaders enter the richest person race?
The race of being the richest person is not new for them. Both have been on the list for decades now. Although Bill Gates made to the list first and it was quite long when Bezos made his place to this list for the first time.
With a net worth of $1.25 billion, Bill Gates came on this list in 1987. For Jeff Bezos, it was after one year of the launch of Amazon when he managed to be the part of the top 400 rich people, and the year was 1998. Since then, both of them have been on this list, attaining different positions. So, no matter if they are on the top of the list or not, they are among a few individuals who own billions of dollars. But for now Bill Gates surpasses Jeff Bezos.
Another common thing about Bill Gates and Jeff Bezos:
Another prominent common thing about both the entrepreneurs; rather, we must say billionaire entrepreneurs are that they started from scratch. None of them was this rich before they started their flagship companies. It is because if Microsoft and Amazon, that today they are among the most famous people in the world and the richest one as well.
What is in for you?
For being rich, you just need a good innovative business idea and perseverance. If you’ll follow your idea with great passion, you can definitely make a good fortune out of that idea. But be realistic, we aren’t saying that staring a business today would make you the competitor of Jeff Bezos or Bill Gates, but within a few tears, your company could also be worth billions of dollars, giving you the entry in the world’s richest people.
Bill Gates surpasses Jeff Bezos has been in the headlines lately. But for many of us, the reason for this change in position was unknown. This is why we have tried to cover the current standing of both the leaders in detail, along with the factor that actually contributed to this change in the position.
Both Microsoft and Amazon are the great companies run by the greatest entrepreneurs of all the time, so what we can expect ahead is the continuation of this race to be on the top. In 2018, the difference between the overall net worth that both is the leaders had was too broad, but now with the limited gap, the competition would be even tougher. So, a neck-to-neck race would carry on throughout the next year, and then we’ll see which of these entrepreneurs have secured the next win.