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Billionaires are hoarding more cash than ever due to growing economic uncertainty, according to a new report.
The world’s billionaires are now holding 22.2 percent of their wealth in cash (around $1.7 trillion), consulting firm Wealth-X’s “Billionaire Census” indicates. It is the highest percentage since the survey began. The world has 2,473 billionaires.
“Billionaires are taking money off the table where available, while uncertainties in the economy and the historical highs found in deals have resulted in cash-flush portfolios,” a Wealth-X report reads.
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The billionaires’ cash hoard is roughly the size of Brazil’s gross domestic product, CNBC reported. A GDP is a measure of the value of all the goods and services sold in a nation. Brazil has a population of around 200 million people.
Average people should be concerned when the wealthy hoard cash, because it means that the super-rich think assets such as stocks, bonds, precious metals and real estate are about to lose value. They want to protect their wealth, and be in a position to snap up bargains when the market hits bottom.
Warren Buffett made most of his $66.4 billion fortune by buying up low-priced stocks during the economic crises of the 1970s and in 2008. Many other billionaires did the same.
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