WEBVTT - Devon Pendleton on Richest Billionaires (Radio)

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<v Speaker 1>Let's get to our next guest, Devon Pendleton, Bloomberg Wealth Reporter.

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<v Speaker 1>We wanted to take a look at some of the

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<v Speaker 1>billionaires around the world and some of the huge losses

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<v Speaker 1>that were racked up this year. We we know that

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<v Speaker 1>stock stumbled and bonds stumbled, worst year ever for bonds

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<v Speaker 1>and about down year for the SNP five. Among the

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<v Speaker 1>names up there near the top of the list obviously

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<v Speaker 1>Elon Musk and Jeff Bezos, and I would argue, maybe

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<v Speaker 1>not in terms of the amount of money lost, but

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<v Speaker 1>potential losses. You can probably put Sam Bankman Freed in

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<v Speaker 1>there as well. Of course, that's the case that we'll

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<v Speaker 1>go through the courts, and we have to wait and

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<v Speaker 1>see if we say good morning to Devon Pendleton's our

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<v Speaker 1>our wealth reporter to take a closer look at this, Devin,

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<v Speaker 1>what are some of the shocking trends that happened this

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<v Speaker 1>year that led to these big losses. Well, I think

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<v Speaker 1>the overall, of course, the markets um coming down quite dramatically,

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<v Speaker 1>especially if you compare it to one where everything was

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<v Speaker 1>just so frosthly and surging. I mean that definitely kind

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<v Speaker 1>of across the board. Relate took out some of the

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<v Speaker 1>big names. A lot of the big big fortunes are

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<v Speaker 1>very concentrated in the tech industry of course, Jeff Baso, Amazon,

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<v Speaker 1>Mark Zuckerberg and Meta. But you also had some sort

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<v Speaker 1>of outlier events here which kind of exacerbated the pain.

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<v Speaker 1>Of course, you have, um, the war in Ukraine, which

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<v Speaker 1>took a severe blow to the Russian fortunes. Not only

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<v Speaker 1>were the markets down, the ruble depreciated, but you also saw,

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<v Speaker 1>mean many of these very wealthy Russians, their assets are

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<v Speaker 1>quite concentrated in the West. Um, they have a lot

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<v Speaker 1>of property in London, they owned companies all over in

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<v Speaker 1>the US, Europe, and the sanctions just I mean absolutely

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<v Speaker 1>obliterated the value of those assets. Um. And this, of

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<v Speaker 1>course Elon Musk not just Tesla being down, but also

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<v Speaker 1>buying Twitter and taking a gamble there meant he had

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<v Speaker 1>a lot of sell a lot of stock and also

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<v Speaker 1>leveragiest desion which definitely added to his losses. Not everybody

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<v Speaker 1>was a loser, and so Mr Rami come up and

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<v Speaker 1>a rise. His rise seems at the moment on still Bob, Yes, definitely,

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<v Speaker 1>I mean, got on Donnie is a fascinating story. Um.

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<v Speaker 1>He was somewhere. I think he was in the twenties

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<v Speaker 1>at the beginning of the year in terms of or

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<v Speaker 1>so richest person in the world. He's now number three.

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<v Speaker 1>He's the first Asian to rank in the top three

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<v Speaker 1>richest people in the world. He's a cold tycoon. So

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<v Speaker 1>um that's where he originally kind of made his fortune.

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<v Speaker 1>And with the upheaval and the energy markets, suddenly Cole

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<v Speaker 1>was kind of thrust from the back burner to being

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<v Speaker 1>a very important asset that definitely burnished his fortune. And

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<v Speaker 1>he's diversifying into everything, so he's not going anywhere in

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<v Speaker 1>the year ahead. What was the most interesting dislocation that

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<v Speaker 1>you saw either up or down in this past year,

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<v Speaker 1>and with whom Donnie was certainly most interesting on the

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<v Speaker 1>upward front. On the downward front, I mean, you can't

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<v Speaker 1>you can't avoid talking about Sam Banking Fried. Of course,

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<v Speaker 1>you know, the there's that question of was he worth

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<v Speaker 1>anything at any point ever, But if you look at

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<v Speaker 1>you know he was leveraging a fortune which at its

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<v Speaker 1>peak um we estimated to be worth twenty six billion dollars,

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<v Speaker 1>which was real in the sense that he had investors

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<v Speaker 1>um piling money into FDx, he had clients putting money

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<v Speaker 1>in there. He had a ton of um capital at

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<v Speaker 1>his disposal she was throwing around. I mean, he was

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<v Speaker 1>donating to politicians, He was propping up so many other

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<v Speaker 1>cryptos as things started to hit the skids, and he

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<v Speaker 1>was also buying huge steaks in public companies like Robin

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<v Speaker 1>Hood so real or not. He was leveraging that fortune

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<v Speaker 1>to huge effect and to have it just vaporized in

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<v Speaker 1>the matter of a week. I mean, he went from

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<v Speaker 1>sixteen billion dollars to zero in a matter of days.

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<v Speaker 1>It's not something we've really ever seen before. It was

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<v Speaker 1>shocking and really is going to have a knock on

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<v Speaker 1>effect for years now. You mentioned the on Musk, but

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<v Speaker 1>there was one man who really had a tough time

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<v Speaker 1>of it, and some are blaming well nearly everybody's blaming

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<v Speaker 1>those losses on his obsession, as some have put it

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<v Speaker 1>on the so called metaverse. And we're talking of course

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<v Speaker 1>Mark Zuckerberg. Yes, Mark Zuckerberg had a horrible year. He

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<v Speaker 1>was down in terms of percentage wise, he was down

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<v Speaker 1>more than anybody. He was done about sixty this year UM,

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<v Speaker 1>which is a big fall for him. I mean, he's

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<v Speaker 1>for years he's kind of been among the top five

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<v Speaker 1>or eight richest people. He's now done in. I believe

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<v Speaker 1>he hasn't been that low in eight years. Um. And

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<v Speaker 1>it really is because yes, there's the tech downturn, but

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<v Speaker 1>also just to pivot to the metaverse um, which he

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<v Speaker 1>is such a believer in. But it is not showing

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<v Speaker 1>any signs of turning a profit anytime soon. He's digging in. Um,

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<v Speaker 1>he's betting the house on it. You mentioned one political

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<v Speaker 1>leader of Vladimir Po. Was there any other political leader

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<v Speaker 1>who quite particularly lost a lot of money? Um, in

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<v Speaker 1>terms of political leader, that is a great question. Um.

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<v Speaker 1>We Well, I can talk about who definitely did not

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<v Speaker 1>lose money and who I reported quite a bit about.

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<v Speaker 1>But someone who gained quite a bit of money this

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<v Speaker 1>year were some of the auto crafts in the Gulf

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<v Speaker 1>in the Middle Eastern Gulf region. Wrote in particular about

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<v Speaker 1>the Nayan family above Dabby Um. Energy markets definitely turned

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<v Speaker 1>in their favor this year. They also have kind of

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<v Speaker 1>consolidated a lot of power with the Ukraine War. They're

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<v Speaker 1>richer than ever. Excellent, Thanks very much, Devon Devon Pendleton,

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<v Speaker 1>Bloomberg Wealth Reporter. We've been taking a look at some

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<v Speaker 1>of the losses and some of the gains of the

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<v Speaker 1>world's richest billionaires right across the globe.