Billionaire Bernard Arnault, the founder and CEO of LVMH, has fallen from his prestigious position as the world’s second-richest person, losing out to Jeff Bezos, the founder of Amazon.com Inc. This change in rankings can be attributed to a decline in luxury stock sales, which resulted in a decrease in Arnault’s net worth compared to Bezos’.
Arnault’s wealth has experienced a substantial decline of $6.8 billion, following LVMH’s report of weaker sales growth. Currently, his net worth stands at $155.1 billion, just below Bezos’ $156.3 billion, according to the Bloomberg Billionaires Index. It’s worth noting that Arnault had held the title of the world’s richest person in late 2022, surpassing Elon Musk. Despite briefly falling below Musk’s ranking in May, Arnault had consistently maintained the second spot since October 2022.
The decline in Arnault’s fortune can be attributed to a sluggish luxury goods market, with reduced demand from cautious US consumers and a slow economic recovery in China. As a result, LVMH shares experienced a 10% drop in Paris over the three days following the earnings report, although they rebounded slightly on Monday. Overall, the shares have seen a 1.9% decrease this year.
On the other hand, Bezos and Musk have benefited from a recovery in the tech stocks sector. Musk has seen his wealth grow by an impressive $96.8 billion this year, primarily due to a remarkable 106% surge in Tesla shares. Bezos, similarly, has seen his fortune increase by $49.3 billion, driven by a 58% rise in Amazon’s stock.
This shift in rankings serves as a reminder of the volatile nature of the billionaire club. It demonstrates that the wealth of the world’s richest individuals is closely tied to the performance of their companies and respective sectors. While Arnault may have temporarily fallen down the list, the dynamic nature of wealth accumulation means that rankings can change rapidly. It will be intriguing to observe how the billionaire landscape unfolds in the coming months and whether Arnault can regain his position as the world’s second-richest person.
Useful links:
1. Luxury Stocks Decline: Implications for Investors
2. The Influence of Tech Stocks on Billionaires’ Wealth
