Wednesday, 1 February 2017

Bill Gates To Become World's First Trillionaire

...The Microsoft cofounder was worth $75billion in 2016

...Oxfam says he and other billionaires have on average produced a rate of return of 11 percent compounded

...If he keeps up that rate of return, in 25 years he would be a trillionaire

Bill Gates is already the world's richest man but that's chump change compared to what he could be in the next 25 years: the world's first trillionaire.
The Microsoft cofounder is already worth $85billion, according to Forbes. But if Gates' wealth continues to appreciate at the rate of return it has been for the past decade, then by the time 61-year-old Gates hits his 86th birthday, he should be worth a trillion dollars.

The ultrarich have been enjoying an average rate of return of 11 percent since 2009, says the poverty-research group, which recently broke the stunning news that eight billionaires have as much wealth as the 3.6billion people who make up the poorest half of the world's population, says CNBC.

f Gates' investments continue at that growth rate, then Gates, or perhaps another billionaire close to his level, will become the world's first trillionaire. That's even with the billions Gates has given away to charity.

'If billionaires continue to secure these returns, we could see the world‟s first trillionaire in 25 years,' said the Oxfam report. 'In such an environment, if you are already rich you have to try hard not to keep getting a lot richer.'

At least one journalist thinks the claim is 'ludicrous' and picks apart the charitable organization's numbers.

Using the start date Oxfam uses for calculating Gates' wealth growth rate, 2006, when he left Microsoft, the organization notes that the computer whiz's wealth rose 50 percent or by $25billion in 2016.

That's a four percent rate of return, compounded, not 11 percent, says Tim Worstall, a Forbes contributor.

Using the same rate of return, and assuming Gates doesn't do something like suddenly give away most of his fortune, and using the same start date of 2006 when Gates was worth a mere $50billion, that means in 25 years, he would be worth $133billion.

Even using Gates' 2016 estimated $75billion net worth, Worstall calculates that Gates would only be up to a measly $200billion in 25 years at a four percent rate of return, not a trillion.

Gates' estimated net worth grew $10billion to $85billion by January 31, according to Forbes.

As of 2013, Gates had given away $28billion to the Gates Foundation, which helps fight worldwide poverty.  

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