Elon Musk has been demoted to second place on Bloomberg’s list of the world’s wealthiest people by Bernard Arnault, chairman of French luxury goods giant LVMH (LVMHF). Arnault is the first European to top the list.
According to the Bloomberg Billionaires Index, Arnault’s wealth has increased to $171 billion from the Tesla CEO’s $164 billion fortune as of Tuesday. This week, Musk was dethroned by Arnault from the top spot on Forbes‘ “Real Time Billionaires list.”
Fobes Middle East sent the following message on its official Twitter feed on February 18, 2023-
The world’s top 10 billionaires saw notable changes in their net worth this week. Bernard Arnault still holds his No. 1 ranking despite a drop in his wealth by $1.2 billion, while Elon Musk was the biggest gainer with a $3.4 billion rise in his fortune.
The world’s top 10 billionaires saw notable changes in their net worth this week. Bernard Arnault still holds his No. 1 ranking despite a drop in his wealth by $1.2 billion, while Elon Musk was the biggest gainer with a $3.4 billion rise in his fortune.#Forbes pic.twitter.com/tWrVidfAOR
— Forbes Middle East (@Forbes_MENA_) February 18, 2023
According to the Bloomberg Billionaires Index, Musk’s net worth has decreased by $107 billion this year. Arnault’s wealth, derived from his ownership of LVMH, has been reduced by only $7 billion.
The stock performance of the companies where the pair owns shares is partially to blame for the discrepancy. Moreover, Musk’s acquisition of Twitter (TWTR) hasn’t helped. Even so, he poses no immediate threat of slipping farther down the list: His wealth continues to be significantly more than that of Amazon (AMZN) founder Jeff Bezos ($116 billion) and Indian businessman Gautam Adani ($125 billion), who come in third and fourth place on Bloomberg’s list, respectively.
While the share price of Tesla (TSLA) has fallen 54% this year, the stock of LVMH has remained stable thanks to solid sales in the US and Europe. This year, the luxury industry has held up reasonably well despite rising inflation forcing less wealthy consumers to alter their buying patterns. The market value for LVMH is €362.4 billion ($386 billion).
Bernard Arnault Maintaining a Low Profile
Arnault, born in Roubaix in the north of France in 1949, earned his engineering degree from Paris’ famed École Polytechnique. After receiving advancements, he started his career at the family-run construction firm Ferret-Savinel, where he eventually became chairman in 1978.
He learned that the French government sought a new investor to take over Boussac Saint-Freres six years later. Christian Dior, a renowned French fashion house, was a significant asset the bankrupt textile group possessed.
Arnault acquired control of the organization, brought it back to profitability, and started a plan to create the top luxury products company in the world.
According to a biography on the LVMH website, “In the process, he reinvigorated Christian Dior as the cornerstone of the new organization.”
In 1989, two years after Louis Vuitton and Mot Hennessy merged to form the firm, Arnault acquired a controlling interest in LVMH. Since then, he has served as the company’s chairman and CEO.
While many people may not immediately recognize Arnault’s name, the companies he helped build, including Christian Dior and Dom Pérignon, are now well-known.
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With 75 brands providing wine, spirits, fashion, leather goods, fragrances, cosmetics, watches, jewelry, luxury travel, and hotel stays, Arnault has transformed LVMH into a behemoth in the past three decades luxury goods industry. In 1992, he opened the first Louis Vuitton store in China in Beijing.
The most signific group that accomplished the ant acquisition in the history of the luxury market was in January 2021 when it acquired Tiffany & Co., a renowned US jeweler, for $15.8 billion.
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