{ Bernard Arnault, Elon Musk, world’s richest person, LVMH, Louis Vuitton, luxury brands, net worth, Tesla stock, Jeff Bezos, billionaire }
The Billionaire Throne Has a New King: How Bernard Arnault Dethroned Elon Musk As World’s Richest Person
The exclusive club of the world’s richest billionaires has a new member at the top. French business magnate Bernard Arnault is now the wealthiest person on Earth, knocking Tesla CEO Elon Musk out of the highly coveted #1 spot.
Arnault is the CEO and chairman of LVMH, which owns many of the most famous luxury brands including Louis Vuitton, Dior, Sephora and Tiffany & Co. His net worth recently surged to $207.6 billion, according to Forbes real-time billionaires list.
This places him ahead of previous title holder Elon Musk, whose net worth stands at $204.7 billion. Musk had held the throne for over 2 years since January 2022 but has been dethroned by Arnault’s meteoric rise.
So how did this power shift happen among the mega-rich? In short, Tesla’s stock price plunged while LVMH sales continued to grow steadily. Tesla faced a massive 13% single-day stock decline, wiping out over $18 billion from Musk’s fortune. Meanwhile, Arnault’s LVMH reported a 10% rise in quarterly sales thanks to strong demand, especially from luxury-loving Chinese buyers.
This changing of the guard just goes to show how volatile fortunes at the top can be. One day a billionaire CEO like Musk seems untouchable on top of the money mountain, and the next day he’s toppled by a challenger like Arnault. It’s a constant battle among the world’s billionaires to become the richest person alive. But with huge amounts of wealth tied to stocks, no one’s position is guaranteed for long. Buckle up, because more turbulence likely lies ahead!
Bernard Arnault Becomes the Richest With $207.6 Billion Net Worth
According to the real-time billionaires list by Forbes, Bernard Arnault and his family now have a net worth of $207.6 billion, following a noteworthy $23.6 billion surge on Friday, January 27, 2024. This places him at the top of the world’s richest rankings, surpassing Elon Musk.
Arnault has served as CEO of LVMH (Moët Hennessy Louis Vuitton) since becoming the majority shareholder in 1989. The global luxury goods conglomerate includes iconic brands like Louis Vuitton, Dior, Sephora, and Tiffany & Co. LVMH made waves in 2021 with the record-breaking $16 billion acquisition of Tiffany, marking the largest luxury brand acquisition ever.
Beyond LVMH, Arnault also has holdings in venture capital through his family’s investment firm, Groupe Arnault. Their holding company Agache strategically invests in major companies like Netflix and ByteDance, the parent of TikTok.
Tesla Stock Plummets, Reducing Musk’s Net Worth
Elon Musk previously held the #1 richest spot for over 2 years since January 2022. However, Tesla stock tumbled 13% on January 26, 2024, after Musk warned that sales growth would slow in 2024 during an earnings call. This sharp single-day decline resulted in Musk losing over $18 billion in net worth.
\As of January 27, 2024, Musk’s net worth stands at $204.7 billion, according to Forbes. The electric vehicle maker Tesla has a market cap of $586 billion, down significantly from over $1 trillion in April 2022.
Top 10 Richest People in the World
Here are the top 10 wealthiest people worldwide as of January 2024, according to the Forbes real-time billionaires list:
- Bernard Arnault – $207.6 billion
- Elon Musk – $204.7 billion
- Jeff Bezos – $181.3 billion
- Larry Ellison – $142.2 billion
- Mark Zuckerberg – $139.1 billion
- Warren Buffett – $127.2 billion
- Larry Page – $127.1 billion
- Bill Gates – $122.9 billion
- Sergey Brin – $121.7 billion
- Steve Ballmer – $118.8 billion
LVMH Posts Strong Q4 2024 Results
Arnault’s boost to the top spot was fueled by the continued success of his luxury goods conglomerate LVMH. In the fourth quarter of 2024, LVMH posted a 10% rise in sales to nearly 24 billion euros ($26 billion). This resilient demand was driven by Chinese buyers and overall recovery from the pandemic.
In particular, sales at LVMH’s fashion and leather goods division rose 9%, just shy of the expected 10% growth. The division includes mega brands Louis Vuitton, Dior, Fendi, and Celine.
LVMH also saw sales growth in its perfumes, cosmetics, watches, and jewellery businesses. The only area with slowed growth was wines and spirits, including Moet Hennessy, which declined 4% for the full year 2024.
How Did Bernard Arnault Build His Massive Fortune?
Bernard Arnault has spent decades building his impressive fortune, with his net worth first exceeding $1 billion in 1990. Here are some of the key factors behind his wealth growth:
- Became majority shareholder and CEO of LVMH in 1989, transforming it into a luxury goods empire through acquisitions.
- Strategic investments in iconic brands like Louis Vuitton, Bulgari, Marc Jacobs, Tag Heuer, Dom Pérignon, and Hennessy.
- Historic acquisition of Tiffany & Co. in 2021 for $15.8 billion.
- Savvy investments in Netflix and TikTok parent company ByteDance through a family investment firm.
- Aggressively expanded LVMH’s global retail footprint, especially in Asia and online.
- Diversified revenue streams across fashion, leather goods, perfumes, cosmetics, watches, jewellery, wines, and spirits.
- LVMH stock surged 90% from 2020 to 2024. Arnault owns nearly 50% of the shares.
Luxury Brands Show Resilience During Economic Downturns
The continued growth of LVMH and Bernard Arnault’s net worth, even during 2023’s economic uncertainties, demonstrates the resilience of the luxury goods sector. LVMH reported record sales of nearly $80 billion in 2023.
Luxury brands have pricing power that enables revenues to keep rising even as costs increase. Their relatively affluent customer base is less impacted by recessions compared to mass-market brands.
In addition, LVMH has rapidly expanded its presence in China and Asia more broadly, where sales have stayed strong. This has helped offset weaknesses in Europe and the United States.
Elon Musk’s Net Worth Decline in 2024
Meanwhile, Elon Musk’s reign as the world’s richest was disrupted by the sharp decline in Tesla’s stock price in 2023 and 2024. After reaching a peak market cap of over $1.2 trillion in April 2022, Tesla’s valuation dropped significantly in 2023 amidst a weakened economy.
Several factors contributed to the pullback of Tesla’s stock:
- Persistent inflation and rising interest rates dampened investor appetite for high-growth technology stocks in 2023.
- Tesla repeatedly missed vehicle delivery targets in 2022 and 2023 due to production challenges.
- Sales slowed in China, previously Tesla’s most important growth market.
- Competition from new EV models put pressure on Tesla’s dominant market share.
- Musk’s chaotic $44 billion acquisition of Twitter weighed on Tesla stock due to investor distractions.
- Tesla’s valuation became stretched, with its P/E ratio peaking at nearly 200 in late 2021.
Outlook for World’s Richest in 2024 and Beyond
Bernard Arnault appears positioned to maintain the #1 spot as the world’s richest person through 2024, given LVMH’s steady growth and the luxury sector’s resilience. However, Elon Musk could regain the title if Tesla bounces back.
Jeff Bezos also lurks close behind at #3 with a $181 billion net worth. If Amazon stock rallies from its lows, he could make a run for the top spot again.
Looking ahead, the elite billionaires club will continue expanding, with the world’s first trillionaire potentially emerging this decade. For now, Bernard Arnault seems to hold the top spot, but anything can happen in the world of the ultra-wealthy.
FAQs About Bernard Arnault and the World’s Richest Status
1. How old is Bernard Arnault?
Bernard Arnault is 74 years old as of 2024. He was born on March 5, 1949.
2. Is Arnault the owner of Louis Vuitton?
Yes, LVMH which is owned and run by Bernard Arnault, is the parent company of Louis Vuitton and many other luxury brands. Arnault has built LVMH into the world’s largest luxury goods business.
3. Who is the CEO of LVMH?
Bernard Arnault has been CEO and Chairman of LVMH since 1989 when he became the majority shareholder.
4. Where is Bernard Arnault from?
Arnault is from France. He was born in Roubaix and raised in northern France.
5. How many kids does Bernard Arnault have?
Arnault has five children from two marriages. Two of his sons, Alexandre and Frédéric Arnault, are executives at LVMH.
6. Is anyone richer than Elon Musk?
As of January 2024, Bernard Arnault has surpassed Elon Musk as the world’s richest person. But fortunes fluctuate, and Musk could regain the top spot.
7. Who will be the world’s first trillionaire?
No one knows for sure, but experts predict the world’s first trillionaire will likely be either Elon Musk, Jeff Bezos, or Bernard Arnault given the rapid growth of their companies and net worths.
Also, Watch the Web story on The World’s Top 10 Richest Person in January 2024
Conclusion
The competition for the title of world’s richest person remains fierce among the top billionaires like Bernard Arnault and Elon Musk. With the high volatility of stock valuations and unpredictable macroeconomic forces, there will likely be more shifts in the richest rankings in the coming years.
While rising inequality has sparked controversy, Arnault and other billionaires argue their wealth stems from creating innovative companies and thousands of jobs. Nevertheless, the massive fortunes accumulated at the very top present challenges for society and government policies.
Taxes, philanthropy, and investments that reduce inequality could help address the imbalance. But the drive to accumulate more wealth is strong, meaning the rise of mega-rich figures is likely inevitable. The race for the $1 trillion net worth capstone continues heating up.
Disclaimer :
This article is for informational and educational purposes only. It should not be construed as financial advice. Please conduct your own research before making any investment decisions. Investing carries inherent risks, including loss of principal. Speak with a financial advisor to determine if investing is right for you. This article is published by Wini Media and is not affiliated with the companies mentioned.
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