Mark Zuckerberg has reiterated the usual narrative that explains why the rich hardly keep most of their funds in the bank.
The 36-year-old CEO and founder of the biggest social media company, Facebook, believed to be worth $104 billion, keeps just $2.3 billion in cash (4.4% of his net wealth).
His present wealth valuation is estimated to be above the worth of 2 billion barrels of crude oil or 56 million troy ounces of gold. Mark Zuckerberg, remains the youngest person ever to be worth over $100billion.
What this means
Most wealthy people, including successful tech entrepreneurs, fashion icons, and leading hedge fund managers, would rather invest most of their funds on financial assets like stocks, real estate, fixed-income instruments, and lately cryptos than holding a significant amount of cash at the bank, because many banks offer unimpressive interest rates.
Cash is often exposed to inflation, and in some cases depreciate in value faster than financial assets like gold, bitcoin.
With that said, it’s key to note the world’s elite keep a significant amount of cash primarily in case they need it for buying or investing in future assets.
- Methodology: The value of his present cash valuations is based on an analysis of insider transactions — mostly from the sale of his stock holdings valued by an analysis retrieved from Bloomberg data.
What you must know
Zuckerberg, is fifth on the list, with a fortune estimated to be worth $104 billion and a yearly gain of about $27 billion.
- Facebook had a revenue of $70.7 billion last year and has about 2.5 billion monthly users. Its initial public offering in 2012 was the biggest-ever technology IPO in that era.
- He owns the biggest online social media company, popularly referred to as Facebook, and other household tech brands including Instagram and WhatsApp.