January 25, 2020 Real Estate Publication

Bill Gates gave away $35 billion this year but didn’t see his personal net worth drop

Bill Gates

Chesnot/Getty Images

Bill Gates is not taking a defensive approach with his billions of dollars of wealth.

The founder of Microsoft added $16 billion to his net worth this year, despite giving away over $35 billion to charity, according to Bloomberg. That brings Gates’ total wealth to $106 billion, the second largest fortune in the world — behind Amazon’s Jeff Bezos.

“We’re not, you know, in some defensive posture where we’re mostly in cash, or anything like that,” Gates told Bloomberg Television on Tuesday. “The strategy that’s been used on the investments is to be over 60% in equities.”

Having 60%, in this case $60 billion in stocks or index funds, is an aggressive investment strategy for someone of Gates’ wealth. The average family office portfolio in North America had about 32% of its assets in stocks in 2018, according to a Campden Wealth report.

Typically investors would be more diversified across asset classes like government bonds and real estate.

But Gates said he is “bullish’ on the United States and global businesses.

“You can make the case that the yields aren’t very high but that’s true against all asset classes,” said Gates. “T-bills, 10-Year are well less than 2%, so there’s no obvious thing to beat other investors out there and there’s reasons to think absolute returns for the next decade will be less than they have been for the last several decades.”

The U.S. is currently in a decade-long expansion, the longest in history.

Gates’ charitable work is primarily done through The Bill and Melinda Gates Foundation. The foundation works to tackle inequality in health and education around the world, the climate crisis and world hunger. The organization works domestically on ensuring all students graduate from high school.

Financial advisors warn that just because a billionaire favors a particular allocation, it doesn’t mean all investors should follow suit.

“Whether it’s a billionaire, CEO or foundation, you have to remember that they are investing for their own objectives,” said certified financial planner Douglas Boneparth, president and founder of Bone Fide Wealth in New York. “You should be investing based on your own goals, your tolerance for risk and your preferences,” Boneparth said.

If you’re a young investor, for instance, and you won’t need the money for decades, you could stand to be more aggressively invested.

“You could have up to 100% in equity,” Boneparth said.

Pre-retirees or retirees, on the other hand, might need to be far less invested in stocks to reduce the risk in their portfolio.

“They’re relying on those assets to pay for their retirement,” Boneparth added.

— CNBC’s Sarah O’Brien contributed to this report.

Watch the full Bloomberg interview here.

in Wealth
Related Posts

Powerball jackpot still unclaimed, Wednesday’s drawing could see a $343 million winner

January 19, 2020

January 19, 2020

Joe Raedle The Powerball jackpot is now $343 million. Next Wednesday’s drawing could see a lucky winner, who will part...

You can still win the Powerball jackpot. But it won’t mean $321 million in your bank account

January 16, 2020

January 16, 2020

Joe Raedle | Getty Images News | Getty Images No one won. That means you’ve got another chance at winning...

Powerball’s jackpot is now $296 million. Here’s the tax bill if you win

January 15, 2020

January 15, 2020

If you hit the $296 million Powerball jackpot in Wednesday night’s drawing, remember that good ol’ Uncle Sam will be...

From live jazz to jet lag rooms: Here are the coolest new things about flying in 2020

January 14, 2020

January 14, 2020

The next time you take to the skies, pay close attention. Airlines are constantly evolving to attract new customers and...

Lamborghini’s 2019 sales jump 43%, driven by its Urus SUV

January 13, 2020

January 13, 2020

Exterior of the 2019 Lamborghini Urus with a base retail price starting at $200,000. Adam Jeffery | CNBC Lamborghini reported...

How to protect your windfall if you snag Powerball’s $296 million jackpot

January 12, 2020

January 12, 2020

If you beat the odds against hitting the Powerball jackpot, there’s now nearly $300 million waiting for you in Wednesday...

Powerball jackpot climbs to $277 million. Here’s the tax bite for the winner

January 9, 2020

January 9, 2020

With no one hitting all six winning numbers in Powerball’s Wednesday night drawing, the jackpot has pushed higher again. The...

Rolls Royce’s $400,000 SUV helps luxury carmaker set new sales record for 2019

January 7, 2020

January 7, 2020

The Rolls-Royce Cullinan at the Geneva International Motor Show 2019. Martyn Lucy | Getty Images Rolls-Royce had its best year...

If you hit the $220 million Powerball jackpot, this is your tax bill

January 1, 2020

January 1, 2020

If your New Year’s Day celebration ends up including a $220 million Powerball jackpot win, remember that Uncle Sam tends...

Seeing the British royals up close on Christmas Day, here’s what we know

December 23, 2019

December 23, 2019

Anyone can line up to see the queen, her children and some of her grandchildren as they attend church on...

If you’re a business owner, grab this 20% tax break before the year ends

December 21, 2019

December 21, 2019

Jetta Productions Inc Entrepreneurs hoping to pocket some tax deductions for 2019 shouldn’t forget a new 20% break. The qualified...

Someone just won the $372 million Mega Millions jackpot. These should be their next steps

December 18, 2019

December 18, 2019

Someone is having a good start to the holidays. A lottery player in Ohio won the $372 million Mega Millions jackpot...

Someone just won the $372 Mega Millions jackpot. These should be their next steps

December 18, 2019

December 18, 2019

Someone is having a good start to the holidays. A lottery player in Ohio won the $372 Mega Millions jackpot...

Cramer: Many billionaires might have actually supported Elizabeth Warren, but she blew it

December 17, 2019

December 17, 2019

CNBC’s Jim Cramer said on Tuesday that Sen. Elizabeth Warren missed her chance to court ultra-wealthy voters who may have...

Mega Millions jackpot jumps to $372 million. Do these things first if you win

December 14, 2019

December 14, 2019

For Mega Millions players, the daydreaming can continue. With no one hitting all six numbers on Friday, the top prize...