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- 🌏 Global Wealth Trends
🌏 Global Wealth Trends
+ Byron Wien, Louis-Vincent Gave, Nicolai Tangen, Prof G, John Armitage & More!
The Idea Farm
December 31, 2023
“When drinking with traders, stay one drink behind, and shut up.”
Research
UBS - Global Wealth Report (76 pages)
UBS reports that 2022 marked the first year global wealth declined since 2008, mostly as a result of a decline in financial assets. They do note wealth inequality also fell (median wealth has risen twice as fast as mean wealth since 2000). Some fun facts:
The global top 1% account for 44.5% of the wealth share.
USD 137,333 was required to be a member of the top 10% of global wealth holders, and USD 1,081,342 to belong to the top 1%.
North America and Europe account for 56% of total global household wealth, but contain only 16% of the world adult population.
The U.S. accounts for 38% of the world’s millionaires, well-ahead of China in 2nd place with 10%.
There are 79,490 adults with wealth above USD 100 million at the end of 2022, of which 7,020 are worth more than USD 500 million.
UBS - Global Family Office Report (66 pages)
UBS’ 2023 Global Family Office report shares what family offices around the world are thinking and doing around asset allocation, risk management, professionalism and more. Some key takeaways:
Allocations are increasing in regions that have been less in favor for the past few years (Western Europe & Asia-Pacific region).
Geopolitics has replaced inflation as the top concern.
Hedge funds and fixed income are the preferred choice for portfolio diversifiers.
Bonus Content
Byron Wien passed in October, 2023. His annual “Ten Surprises” list was a must-read for 38 consecutive years, and so is this post with his 20 life lessons. Link
How much are you hurting your returns? Link
“For the first time in 14 years, the yield on 10-year Treasuries has surpassed the earnings yields on equities.” Link
Louis-Vincent Gave wonders about the unintended consequences of the sanctions against Russia and the US’s attempts to take China out of global supply chains. Link
52 things that Tom Whitwell learned in 2023. Our favorite: The US Defence Department earns $100m/year operating slot machines used by soldiers on their bases. Link
Podcasts
 12/4/23 - 49 minutes | Nicolai Tangen oversees the $1.3 trillion Norwegian Sovereign Wealth Fund. In this episode, he discusses the history of the Norwegian pool of assets, his approach to serving as a universal owner of assets, and his goals as leader of the organization. |
 11/27/23 - 54 minutes | Scott Galloway walks through his career in entrepreneurship, from starting a video rental company before business school, to going public with Red Envelope, to founding Prof G Media. |
 12/15/23 - 51 minutes | Egerton Capital’s Chief Strategist shares insights into navigating the complexities of portfolio management and the art of risk-taking in fluctuating markets. |
What Else Is Happening
Meb Faber spoke with Liz Simmie about a quantamental approach to ESG.
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