World’s richest men added billions to their fortunes last year as others struggled

The pandemic has forced untold hardships onto many Americans, with tens of millions of families now reporting that they don’t have enough to eat and millions more out of work on account of layoffs and lockdowns.

America’s wealthiest, on the other hand, had a very different kind of year: Billionaires as a class have added about $1 trillion to their total net worth since the pandemic began. And roughly one-fifth of that haul flowed into the pockets of just two men: Jeff Bezos, chief executive of Amazon (and owner of The Washington Post), and Elon Musk of Tesla and SpaceX fame.

Musk has quintupled his net worth since January, according to estimates put together by Bloomberg, adding $132 billion to his wealth and vaulting him to the No. 2 spot among the world’s richest with a fortune of about $159 billion. Bezos’s wealth has grown by roughly $70 billion over the same period, putting his net worth estimate at roughly $186 billion as the year came to an end.

The fortunes of both men owe largely to the stock gains posted by the companies they run, Tesla in Musk’s case and Amazon in Bezos’s. Shares of Tesla are up roughly 800 percent this year after a five-to-one stock split in August. The meteoric rise is driven by a number of factors: its massive factory in Shanghai started churning out vehicles this year, the company began posting consistent quarterly profits and demand for electric vehicles in general is expected to surge in 2021.

Amazon’s stock, on the other hand, has risen around 70 percent this year, a figure that is modest only in comparison to Tesla’s gains. Much of Amazon’s performance is due to homebound Americans turning to the e-commerce giant to order products they would have otherwise purchased at retail outlets shut down by the pandemic. Amazon Web Services, a big profit generator for the company, has also experienced increased demand during the pandemic.

All told, the two men increased their net worth by a staggering $200 billion last year, a sum greater than the gross domestic products of 139 countries. A billion dollars – a radically life-changing sum in nearly any other context – becomes just “an entry in a database,” as Musk recently characterized his Tesla assets.

Source: World’s richest men added billions to their fortunes last year as others struggled