Norway’s sovereign wealth fund, the largest in the world, has reported a first-quarter loss of $40 billion, largely due to a downturn in the technology sector.
The fund, managed by Norges Bank Investment Management (NBIM), saw its value drop to 18.53 trillion kroner by the end of March 2025, with 70% of its investments in equities, which recorded a 1.6% loss.
CEO Nicolai Tangen attributed the decline to significant market fluctuations, particularly in tech stocks, which have faced recent sell-offs. The fund holds major stakes in Meta, Alphabet, Amazon, Nvidia, Tesla, and Microsoft, all of which have experienced volatility.
Additionally, currency movements played a role, with the Norwegian krone strengthening against key currencies, contributing to an 879 billion kroner (around $84.5 billion) decrease in the fund’s value.
Despite the losses, NBIM maintains a diversified portfolio, with fixed-income investments returning 1.6% and unlisted real estate yielding 2.4% gains.
In 2024, billionaire wealth surged to unprecedented levels, with a staggering $2 trillion increase in just one year, according to an Oxfam report.
This rapid growth has led to predictions that the world could see at least five trillionaires within the next decade.
To place this in some context it is has been calculated that there are approximately 150 countries with a GDP of less than $1 trillion. This includes many smaller economies and developing nations.
So, 5 single human beings will likely hold more wealth ‘individually’ than approximately 150 separate countries. One person will be worth more than an entire country!
Oxfam report
The Oxfam report highlights the stark contrast between the wealth of the world’s richest individuals and the persistent poverty faced by millions.
The report reveals that the wealth of billionaires grew three times faster in 2024 compared to the previous year.
This surge in wealth has been attributed to various factors, including booming stock markets, lucrative investments, and favorable economic policies.
However, this concentration of wealth in the hands of a few has raised concerns about growing inequality and its impact on society.
Oxfam‘s findings emphasize the urgent need for bold economic reforms to address this disparity. The report calls for higher taxes on the super-rich and the abolition of tax havens to ensure a fairer distribution of wealth.
It also highlights the importance of investing in public services, such as healthcare and education, to improve the quality of life for all citizens.
Out of whack wealth
The growing concentration of wealth among billionaires has significant implications for global inequality. While the number of people living in poverty has remained largely unchanged since 1990, the wealth of the richest individuals has skyrocketed.
This disparity underscores the need for policies that promote economic fairness and reduce inequality.
The surge in billionaire wealth in 2024 serves as a stark reminder of the growing concentration of wealth and the urgent need for economic reforms.
By implementing policies that promote a fairer distribution of wealth and investing in public services, we can work towards a more equitable society. The emergence of trillionaires within the next decade should be a wake-up call for policymakers to address the root causes of inequality and ensure a better future for all.
World’s most wealthy climbed from $13 trillion to $15 trillion in just 12 months
The combined wealth of the world’s most wealthy rose from $13 trillion to $15 trillion in just 12 months, the global charity said Sunday. It marks the second largest annual increase in billionaire wealth since Oxfam records started.
Meanwhile, the number of people living in poverty has barely changed since 1990, the charity said, citing World Bank Data.
1% of people own nearly 45% of all wealth
The richest 1% of people own nearly 45% of all wealth, while 44% of humanity are living below the World Bank poverty line of $6.85 per day, the data showed.
First trillionaire by 2027 is predicted
Elon Musk, CEO of Tesla and now close ally of Trump, is on track to become the world’s first trillionaire by 2027, according to a report from Informa Connect Academy.
Musk is currently worth about around $440 billion according to the Bloomberg Billionaires Index.
Biden warning
Outgoing U.S. President Joe Biden warned of the rise of an “oligarchy taking shape in America of extreme wealth, power and influence.”
“People should be able to make as much as they can, but pay – play by the same rules, pay their fair share in taxes,” Biden said in his farewell address.
Oxfam
Oxfam is trying to urge governments to commit to ensuring that the incomes of the top 10% are no higher than the bottom 40% worldwide.
Global economic rules should be adjusted to allow for the break-up of monopolies, and more corporate regulation and global tax policies should be adapted to ensure that the rich pay their fair share, according to the charity.
Money that is flowing to the bank accounts of the super-rich instead of much-needed investment in teachers and medicines is “not just bad for the economy — it’s bad for humanity,” said Oxfam’s Behar.
According to the Bloomberg Billionaires Index, Meta CEO Mark Zuckerberg has overtaken Jeff Bezos as the world’s second-richest person
Zuckerberg’s wealth surged by $78 billion in 2024, a rise unmatched by any other member of the index’s 500 richest individuals, thanks to his 13% stake in Meta.
Throughout the year, Wall Street has applauded Meta as the company’s quarterly earnings have consistently exceeded analysts’ expectations.
On Thursday 3rd October 2024, Zuckerberg’s net worth hit $206.2 billion, as per the Bloomberg Billionaires Index, surpassing the $205.1 billion fortune of the ex-Amazon CEO and president. The co-founder of Facebook is now approximately $50 billion behind Tesla’s Elon Musk, according to the index.
Bloomberg Billionaires Index as of 3rd October 2024
Bloomberg Billionaires Index as of 3rd October 2024
Fact: Apparently Mark Zuckerberg says he plans to give away 99% of his Facebook shares.
The Magnificent Seven, or MAMA ANT, is a term coined by Bank of America to describe the seven most dominant tech companies in the world
The Seven are: Microsoft, Amazon, Meta Platforms, Apple, Nvidia, Tesla, and Alphabet. These companies have not only led the tech sector in terms of innovation, growth, and profitability, but have also become some of the most valuable entities in the world by market capitalization.
Valuation at $15 trillion
Market capitalization, or market cap, is the total value of all the shares of a company that are traded on the stock market. It reflects the market’s perception of the company’s future prospects and earnings potential.
As of January 2023, the Magnificent Seven had a combined market cap of about $15 trillion, which was more than the gross domestic product (GDP) of almost every country in the world, except for the United States, China and Japan (just).
Magnificent Seven
The Magnificent Seven have achieved such a remarkable feat by leveraging their core competencies in various fields of technology, such as artificial intelligence (AI), cloud computing, social media, e-commerce, gaming, electric vehicles, and online advertising. They have also diversified their revenue streams by acquiring or developing new products and services, such as Activision Blizzard, AWS, Oculus, iPhone, GeForce, SpaceX, and YouTube. They have also benefited from the increased demand for digital solutions amid the Covid-19 pandemic, which accelerated the adoption of online platforms, remote work, and entertainment.
Challenges
However, the Magnificent Seven also face some challenges and risks that could threaten their dominance and valuation. These include increasing competition from other tech companies, especially from China, such as Alibaba, Tencent, Baidu, and Huawei.
They also face regulatory scrutiny and pressure from governments and consumers over issues such as antitrust, privacy, taxation, content moderation, and environmental impact. Furthermore, they may encounter technical difficulties, security breaches, or ethical dilemmas that could damage their reputation and customer trust.
Conclusion
In conclusion, the Magnificent Seven are the most powerful and influential tech companies in the world, and their market cap surpasses that of almost every country in the world.
List of 10 countries by stock market capitalization
List of 10 countries by stock market capitalisation
The meteoric rise in the profits and market capitalisations of the Magnificent 7 U.S. tech giants: Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla – outstrip those of all listed companies in almost every G20 country. Of the non-U.S. G20 countries, only China and Japan (and the latter, only just) have greater profits when their listed companies are combined.
They have achieved this by exploiting their competitive advantages in various domains of technology and expanding their offerings and markets. However, they also need to overcome some challenges and risks that could hamper their growth and value in the future.
A forced size reduction to stop the monopolising of market share could help tame these beasts too and open up fairer competition.
Should we worry?
Basically, yes, we should be concerned about the size and dominance of these companies.
This level of wealth and power concentrated in just a handful of companies has led some analysts to voice concerns over related risks in the U.S. and global stock markets.
Economists and stock market analysts have cautioned that the U.S. stock market is rivalling 2000 and 1929 in terms of being at its most concentrated in history.
According to the Bloomberg Billionaires Index, Elon Musk is the wealthiest person in the world, with an estimated net worth of $243.46 billion USD as of 8th Jan 2024.
Musk is the founder and CEO of Tesla and SpaceX, X and X.ai as well as the co-founder of PayPal and Neuralink. He made his fortune from various business ventures, starting from a web software company called Zip 2 that he sold in 1999 for around $307 million. He also inherited some wealth from his father, who owned an emerald mine in South Africa.
Think about this for a moment
It’s a little difficult to imagine such wealth so, maybe think of it like this… If you had been given $10,000 every day since the birth of Jesus Christ, 2024 years ago – you would have accumulated some $7.4 billion (without interest and leap years etc).
So, Mr Elon Musk has a net worth of around $243 billion and you would have $7.4 billion and that equates to only 3% of his current wealth.
Or, if you had been given $10,000 every day since the pyramids were built in Egypt around 4500 years ago – you would have accumulated $16.4 billion. That’s still only 6.75% of Elon Musk’s current wealth.
One last thought
A recent report conducted by Oxfam calculated that just 5 of the world’s richest men (including Musk) are worth $869 billion between them.
Your $16.4 billion accumulated over 4500 years would equate to less than 2% of that combined wealth.
Now that’s crazy!
Final thought
8 of the top 10 current billionaires made their money in…technology.
Please note:figures are estimated, but it perfectly demonstrates my point.
The world’s five richest men have increased their combined fortune from $405 billion in March 2020 to $869 billion in November 2023, according to a report from Oxfam.
Wealth increased at a rate of $14 million per hour for 5 people
A report by the charity highlighted the wealth of Tesla CEO Elon Musk, LVMH boss Bernard Arnault and family, Amazon founder Jeff Bezos, Oracle founder Larry Ellison, and investor Warren Buffett.
Oxfam is calling for restrictions on ‘corporate power’ to reduce the massive inequality between the super-rich and the rest of society. Two of the suggestions to correct the inequality is through capping CEO pay and introducing taxes on permanent wealth and excess profits.
This report was released to coincide with the Davos meeting as the rich and wealthy business leaders and bankers gather.
Oxfam says
Fortunes of five richest men have shot up by 114% since 2020.
Oxfam predicts the world could have its first-ever trillionaire in just a decade while it would take more than two centuries to end poverty.
A billionaire is running or the principal shareholder of 7 out of 10 of the world’s biggest corporations.
148 top corporations made $1.8 trillion in profits, 52% up on 3-year average, and dished out huge payouts to rich shareholders while hundreds of millions faced cuts in real-term pay.
Oxfam urges a new era of public action, including public services, corporate regulation, breaking up monopolies and enacting permanent wealth and excess profit taxes.
