Reply to I think we’re severely undercounting billionaires

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]In 2012 there were officially ~425 US billionaires, in 2025 there are officially around ~850. In this time the S&P 500 has done a 5-6x including dividend reinvestment.

So, either most people with 100-250M a decade ago are terrible at investing, or we just aren’t counting billionaires properly. I know someone who is the child of a billionaire and nothing comes up when searching their name.

I think the real number of billionaires in the US is at least 5000 maybe 10,000[/quote]
Well, clearly their money wasn't invested in S&P 500. Why don't you look up where their money is and why they cannot move it easily.
I'd say those people already borrow against the money instead of looking to invest it in Voo or growth stocks.
Why isn't Musk's Net Worth a trillion yet? He knew all about Bitcoin long ago. He has all the insider information when it comes to his own stock and many others like Nvidia. Cannot move such huge amount without consequences.
What causes you to think so black and white, OP?[/quote]

Most hundred millionaires and billionaires are heavily invested in the stock of the company they founded.  They don't liquidate the $250MM they own of their own stock (which would likely mean giving up control of the company), and then think to buy index funds.  That's not how they are wired.

Also, many hundred millionaires own stakes in private companies and real estate.  Again, they don't think to sell their private holdings and then just invest in index funds.

The exceptions are of course the billionaire hedge fund and PE folks.  Their business is basically investing, though they have peverse incentives.  They are incented to make strange investments that may underperform the S&P, but in certain instances dramatically outperform the S&P.  If all they did was match S&P returns, then their LPs would pull their $$$s because why pay hefty fees just to match S&P performance.
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