Forbes and Fortune Lists Mostly Underestimate Billionaire Wealth

Forbes and Fortune lists the wealth of the world’s billionaires but they can mainly track the ownership in public companies or widely publicized holdings in disclosure documents.

Peter Thiel, co-founder of Paypal and founder of Palantir, was able to turn $2000 in a Roth IRA into $5 billion. Thiel purchased some of his Paypal founder shares in his Roth IRA. In 2002, EBay purchased Paypal and Thiel’s Roth IRA was worth $28.5 million. This was about half of Thiel’s $55 million share in Paypal. Thiel has invested in many startups and turned the Roth into $5 billion in value. This was only half of Thiel’s wealth in 2002. Thiel likely has over $10 billion in net worth. The Forbes and Fortune billionaire lists have Thiel at $4.9 billion in net worth.

Bill Hwang is famous for losing $10-20 billion with his Archegos Capital fund. Bill Hwang never appeared on the Billionaire lists.

In 2012, Bill Hwang closed his Tiger Asia hedge fund and had about $500 million. Bill then had 7 years of very successful trading to build up his net worth. Bill bought a lot of Netflix. He used total return swaps and other derivatives.

Bill has huge ups and downs. He was down big after the 2007-2008 crisis.

Nextbigfuture believes that although Bill and his fund lost a lot of money with his recent bet that Bill likely has other funds that still make him wealthy and able to rebuild his fortune.

Forbes and Fortune are only able to see the publicly exposed top of the iceberg of billionaire wealth and some billionaires are completely submerged and invisible to Forbes and Fortune.

SOURCES- Propublica, Forbes, Fortune
Written By Brian Wang, Nextbigfuture.com

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