According to analysts, in 2025, billionaires will continue to invest in channels that they feel familiar with.
The recently released 10th edition of the UBS Billionaire Ambitions report highlights that it is never too late to become a billionaire and the past decade has been a banner year for those who want to build wealth.
A survey of 2,682 billionaires shows that from 2015 to 2024, their total wealth increased by 121%, reaching $14 trillion. Meanwhile, the MSCI AC World Index - which tracks the growth of large and mid-sized companies in 23 developed markets, only increased by 73% during the same period.
However, what is noteworthy is not the wealth they have accumulated, but how they plan to use that money in the coming year. According to Ms. Jennifer Gabrielli, Director of the ultra-high-net-worth solutions team at UBS and also the overseer of this report, this is a factor that investors need to pay special attention to.
“These billionaires run businesses and industries they have been involved in, if not for many generations, then for decades. In those fields, they feel they have a special advantage,” Ms. Gabrielli shared.
She is currently also the head of UBS's new global banking team. “Even when divesting from these assets, billionaires continue to invest in what they know best.”
According to the report, by 2025, billionaires are expected to invest in three main areas:
Real estate
Real estate is the area attracting the most interest. Although some wealthy families are selling off commercial real estate and listed real estate investment trusts, which worries many, 19% of billionaires surveyed still plan to significantly increase their investment in this sector.
Specifically, 33% choose to invest in real estate in the Americas, 27% in the Asia-Pacific region, and 10% in Europe, the Middle East, and Africa.
Bonds and stocks in developed markets
9% of billionaires intend to significantly increase investment in bonds in developed markets, 26% intend to slightly increase, and only 1% said they would significantly decrease. For stocks, 42% of respondents plan to invest more in developed markets.
Gold and precious metals
Gold and precious metals rank third in the investment portfolio. 7% of billionaires indicated they would significantly increase investment in this area, while 33% plan to increase slightly. This is often considered a risk hedge during times of instability.
The report suggests that interest in gold and precious metals may stem from concerns about increasing geopolitical risks and high stock market valuations. While 38% of billionaires plan to increase investment in private equity - a very popular form of investment, 20% plan to decrease investment in this area.
Inherited wealth
The wealth that billionaires leave for the next generation is also growing. In the past decade, multi-generational billionaires have inherited $1.3 trillion. In the next 15 years, this figure is expected to rise to $6.3 trillion. This increase is partly due to more billionaires reaching the age of 70 and the value of their assets continuing to rise.