The pandemic saw job losses on a scale that no one could have predicted.
Unemployment Rate Skyrockets
The US unemployment rate skyrocketed from 4.4% in March 2020 to 14.7% in April 2020. According to the US Bureau of Labour Statistics this is the highest rate of unemployment seen in the US in at least 72 years.
Seth Klarman: Investors Can No Longer Rely On Mean Reversion
"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More
But they say it is an ill wind that doesn’t blow well for someone. And that someone is Jeff Bezos.
With most shops closed during the pandemic people turned to online shopping in their droves. Amazon, the world’s largest online shop, started to thrive at levels never seen before.
This saw Amazon's stock price rise from a pre-lockdown price of $1,862 on January 15th 2020, to the current price of $3,036.
Jeff Bezos' Personal Wealth
According to reports, Jeff Bezos' personal wealth increased by $24 billion over the 2 months of the pandemic.
$24 billion is a lot of money. Too much for most people to get their head around. Stratos Jet Charters developed a calculator that shows you how many seconds it takes Jeff Bezos to earn your wage.
The results are staggering.
They have preloaded the calculator with $35,096. This is the yearly salary of the average Amazon employee.
Can you guess how long it takes Jeff Bezos to earn that?
Try it with you own wage to see how you compare.
Source: Stratos Jet Charters
The Billionaires That Aren't Doing So Well
With that being said, not all of our favourite billionaires are doing well this year.
Bernard Arnault, who is the CEO of luxury brand Moët Hennessy – Louis Vuitton, is losing personal wealth at a rate of $1,040 per second or $2.6 billion per month in 2020. Luxury goods are not doing well in the pandemic. No surprise there.
World famous stock market investor, Warren Buffett, is also having a hard time this year. As stock markets plunge due to the pandemic, so does Buffett's personal wealth. He is losing wealth at a rate of $1,213 per second or $3.1 billion per month. Ouch.
Try not to feel too sorry for them, however. Arnault and Buffett are still worth a very healthy $91 billion and $71 billion respectively.