The usual narrative that explains the wealthy hardly keep most of their funds in the bank has just been affirmed by the world’s richest man.
Jeff Bezos, the CEO and founder of the most valuable retail company on the planet and believed to be worth $183 billion, keeps about $9.53 billion in cash (5% of his net wealth).
READ: Jeff Bezos and wife, MacKenzie, split Amazon shares as divorce nears end
The American tech entrepreneur’s wealth is coming from strong gains from his online retail company now worth over $1.5 trillion.
Amazon is the world’s largest retail cyber company in terms of market value, taking to account that in the past 365 days he has gained $68 billion (much bigger than the Nigerian Stock Exchange valuation of $46 billion)
READ: Netflix, Amazon, Zoom, Shopify drop over 10%
What this means: Most rich individuals including, successful Tech entrepreneurs, fashion icons, and leading hedge fund managers would rather invest most of their funds in assets like stocks, real estate businesses, debt instruments, and lately cryptos than holding a significant amount of cash at the bank because many banks offer unimpressive interest rates. Cash is often exposed to inflation, and in some cases depreciate in value faster than financial assets like gold, Bitcoin.
With that being said, it’s key to note the world’s elite keep a significant amount of cash primarily in case they need it for buying or investing in future assets.
READ: Investors gain big on Airbnb, now worth over $100 billion
What you must know:
- The world’s richest man, Jeff Bezos owns about 11% of Amazon, according to its most recent SEC filing.
- Jeff Bezos held 16% of the world’s largest online retailer before a 4% stake was transferred to his ex-wife last year following the pair’s divorce.
- He is also the principal owner of space exploration company Blue Origin, which is included in Bloomberg’s calculation of investment cost.
READ: Tesla up 500% in 2020, near $500 billion market value
Milestones
- 1964 Jeffrey Bezos is born in Albuquerque, New Mexico.
- 1986 Graduates from Princeton University. Takes job at Bankers Trust.
- 1994 Founds Amazon.com to sell books online.
- 1997 Lists Amazon in an initial public offering at $18 per share.
- 1999 Named Time magazine’s Person of the Year.
- 2003 Survives a helicopter accident in southwest Texas.
- 2007 Introduces the Kindle electronic book reader.
- 2010 E-book sales surpass traditional book sales on Amazon.com.
- 2013 Purchases the Washington Post newspaper for $250 million.
- 2017 Becomes the richest person on earth.
Source; Bloomberg Billionaire Index
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Nairametrics about a year ago found it important to bring to you a few pieces of advice from the billionaire and founder of Amazon, Jeff Bezos on what it takes for someone to succeed in business.
- Be passionate: Bezos believes it’s important for an entrepreneur to follow his or her passion. He says that it’s the people who care that win.
READ: MacKenzie Bezos is set to get her bumper divorce settlement
“You have got to have some passion for the arena that you are going to develop and work in, because otherwise you’ll be competing against those who do have passion for that, and they’re going to build better products and services.”
Bezos added that to be a successful business person, you need to be a missionary and not a mercenary, meaning that you have to be mission-motivated, not money-motivated.
- Be ready to embrace risk and failure: The business tycoon also made it known that taking risks and failing is an integral part of becoming successful in business.
READ: This billionaire made $39 billion in 2019, thanks to his luxury brands
“If you come up with a business idea and there’s no risk there… it’s probably already being done… [and] being done well…. So you have to have something that might not work and you have to accept that your business in many ways is an experiment and it might fail, And that’s ok.”
Bezos has had his own share of failures, like the demise of Amazon restaurants and Amazon’s pop-up kiosks. Even at that, he continues to enjoy risk-taking in business.
- Change yourmindset:Bezos has learned from interacting with the world’s most influential minds that the people who usually get things right are those who listen the most and who change their minds often.
READ: Here’s How To Determine Your Net Worth
“What I have found that people who are right change their mind even without getting new data. They have the same data set that they had at the beginning, but they wake up and theyreanalyzethings all the time and they come to a new conclusion and then they change their mind.”
“In fact, people who win typically have worked hard to recognize what beliefs or biases they hold and “actively try to look for evidence that does not confirm them,”Bezos said.
READ: Bernard Arnault catches up with Bill Gates, ranks second richest man in the world
Related
FAQs
Majority of Jeff Bezos's money is tied up in public assets. According to Bloomberg, Bezos's net worth comprises $12.7 billion in cash, $11.2 billion in private assets, and $96.5 billion in public assets as of March 2023. He currently owns about 10 percent of Amazon.
What percent of his wealth does Jeff Bezos donate? ›
In contrast, Bezos, who has much more money than Scott's $28 billion, has given away about $2.4 billion, according to Forbes. That's about 2 percent of his wealth.
Who is No 1 richest person in the world? ›
Who is the richest man in the world? As of April 1, 2023, the richest man in the world is Bernard Arnault, the CEO and chairman of LVMH of France; he's worth nearly $226 billion. He moved into the number one spot after Elon Musk's fortune fell in late 2022 as shares of electric carmaker Tesla fell.
Is Amazon boss Jeff Bezos going to give away most of $124 billion wealth to charity? ›
Amazon founder Jeff Bezos will donate most of his wealth to charities that focus on climate change and social and political discrimination.
Who owns the most cash in the world? ›
Luxury Mogul Takes Top Spot
| Rank | Name | Net Worth Feb 2023 |
|---|
| 1 | Bernard Arnault & family | $202B |
| 2 | Elon Musk | $191B |
| 3 | Jeff Bezos | $117B |
| 4 | Larry Ellison | $113B |
6 more rowsMar 16, 2023
A billionaire is someone who has assets or a net worth of at least one billion currency units in their native currency.
Why is Jeff Bezos giving money to Dolly Parton? ›
The $100m donation to Parton is the third Bezos has made as part of his Courage and Civility award, after similar grants to the chef José Andrés and the climate advocate Van Jones. “All she wants to do is bring light into other people's worlds,” said Sánchez.
What does Jeff Bezos do with all his money? ›
Forbes estimates that Bezos has donated more than $2.4 billion to charity in his lifetime. He committed a total of $10 billion to his own climate nonprofit, the Bezos Earth Fund, in 2020. As of November 2021, the fund had granted nearly $1 billion of that total.
What billionaire gives all his money away? ›
Accolades. Feeney has been called the "James Bond of Philanthropy" by Forbes magazine for the stealthy and successful manner in which he anonymously donated approximately $8 billion to various charities.
How many trillionaires are there in the world? ›
Currently, no one has yet claimed trillionaire status, although some of the world's richest individuals may only be a few years away from this milestone.
In broader terms, the finance and investment profession has the most millionaires. It also has the most billionaires, with 371.
How do people become billionaires? ›
Becoming a billionaire is a lofty goal, often unobtainable for most individuals. Some find their success through economic, educational, or opportunistic advantages. Others learn to take calculated risks, develop their personal creativity, and deploy their capital advantageously.
How much has Jeff Bezos donated to homelessness? ›
The Amazon.com co-founder with a $115.6 billion fortune has said he plans to give away his wealth during his lifetime.
Has Jeff Bezos donated any money? ›
Despite being the fourth-wealthiest person in the world, according to the Bloomberg Billionaires Index, Bezos has refrained from setting a target amount to give away in his lifetime. Bezos has committed $10 billion over 10 years, or about 8% of his current net worth, to the Bezos Earth Fund, which Sánchez co-chairs.
What is Amazon's biggest donation? ›
Bezos pledged $2 billion to restore natural habitats and transform food systems at the climate summit in Glasgow last year. Previously, Mr. Bezos' largest donation was a $2 billion gift to help homeless families and start preschools.
What bank has the most cash on hand? ›
- JPMorgan Chase – $3.31 Trillion. ...
- Bank of America – $2.41 Trillion. ...
- Citigroup – $1.714 Trillion. ...
- Wells Fargo & Co. ...
- U.S. Bancorp – $591.21 Billion. ...
- PNC Financial Services – $553.39 Billion. ...
- Truist Financial Corporation – $534.19 Billion. ...
- Goldman Sachs – $513.91 Billion.
Buffett's Cash Pile Tops Record With $149.2 Billion On Hand - Bloomberg.
Do billionaires have checking accounts? ›
Many high-net-worth individuals choose to put their money in checking accounts offered by major banks. But instead of opting for the standard checking account, these millionaires have access to private banking opportunities tailored to their money management needs.
Do millionaires keep their money in cash? ›
High net worth investors typically keep millions of dollars or even tens of millions in cash in their bank accounts to cover bills and unexpected expenses. Their balances are often way above the $250,000 FDIC insured limit.
Where do millionaires keep their cash? ›
Where do millionaires keep their money? High-net-worth individuals put money into different classifications of financial and real assets, including stocks, mutual funds, retirement accounts and real estate. There were 24.5 million millionaires in the U.S. in 2022. And only 21% of them inherited money.
You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth. That's how financial advisors typically view wealth.
Who donated 100 million dollars to Dolly Parton? ›
Dolly Parton has famously used her success to help others, especially in areas of literacy and education. She just got a huge boost in those efforts: a $100 million gift from billionaire Jeff Bezos. "Did you say a hundred million?!" Parton said after Bezos announced the gift over the weekend.
Who owns Dollywood? ›
Dollywood Theme Park
Known for its down-home charm, this world-famous 160-acre theme park is as unique as its namesake and owner Dolly Parton.
Is Dolly Parton related to Miley Cyrus? ›
Country legend Dolly Parton is Miley Cyrus' godmother. Parton said she was given that role due to her close relationship with Cyrus' father, Billy Ray. Cyrus and Parton have both spoken fondly about their relationship over the years.
Who did Jeff Bezos give $1000000 to? ›
"Did you say $100 million dollars?" a wowed Parton asked as she joined Bezos, the second-richest person in the world (after Elon Musk), and his partner Lauren Sanchez to accept the honor on Friday. Previous recipients include CNN host Van Jones and Spanish chef José Andrés.
Who has the most physical cash in the world? ›
Warren Buffett's Berkshire Hathaway Inc. now has a record amount of money to put to work. Berkshire's cash pile hit new heights at $149.2 billion of funds in the third quarter, surpassing a record set in early 2020, the company said in its earnings report Saturday.
Which billionaire has the most liquid cash? ›
Bill Gates
The world's wealthiest billionaire is the king of cash among the top 100 billionaires in the world.
Who got $100 million dollars from Jeff Bezos? ›
Dolly Parton has famously used her success to help others, especially in areas of literacy and education. She just got a huge boost in those efforts: a $100 million gift from billionaire Jeff Bezos.
