Which industries created the most billionaires?

[muscleman]

It is clear to me that the economics between different industries vary greatly. Some industries are just so much easier than others.

Cable and software seem to have created a lot of billionaires. Others?

[berkshire101]

Asset management.  I think there's like 75 billionaires on the list that are consider to be investors.  Then there's retail, but I forget how many.  Billionaires come in all shapes and sizes, but it seems like the common ones tend to be investors.  Hmmm... maybe I'll be a billionaire one day :)

[oddballstocks]

Asset management.  I think there's like 75 billionaires on the list that are consider to be investors.  Then there's retail, but I forget how many.  Billionaires come in all shapes and sizes, but it seems like the common ones tend to be investors.  Hmmm... maybe I'll be a billionaire one day :)

 

My guess is that 75 of those 75 made their money from fees rather than investing their own capital.  I remember seeing an article that mentioned if Buffett hadn't opened a partnership and only invested his own capital and earned the returns he did he'd have a few hundred million now.  The only way to a billion is on the backs of investors.

[west]

Asset management.  I think there's like 75 billionaires on the list that are consider to be investors.  Then there's retail, but I forget how many.  Billionaires come in all shapes and sizes, but it seems like the common ones tend to be investors.  Hmmm... maybe I'll be a billionaire one day :)

 

My guess is that 75 of those 75 made their money from fees rather than investing their own capital.  I remember seeing an article that mentioned if Buffett hadn't opened a partnership and only invested his own capital and earned the returns he did he'd have a few hundred million now.  The only way to a billion is on the backs of investors.

 

Oh yeah.  OPM is where it's at.  You guys beat me to the punch saying it .

[randomep]

 

Real estate!

 

China has over 100 billionaires, I suspect 90% got it of real estate. Same for the majority of HK billionaires.

 

I guess more than half of the world's assets is real estate, and someone has to own them.

[bizaro86]

Anything that has lots and lots of leverage, of any kind.

 

Asset management and real estate both leverage off of other people's money (different kinds, same idea).

 

Software and retail are both network effect types of leverage.

 

Oil and gas has many billionaires, but the leverage there is operating. Drilling an oil well/play can be a "lottery ticket" type operation, where success is multiples of investment and failure is a zero. Of course, many oil and gas billionaires are more financial operator types anyway, where they've bought cheap assets at various times, as opposed to drilling their way to wealth.

[valueinvesting101]

Top 10 Ways to Become a Billionaire

Self-made Forbes 400 billionaires

1. Investments: 77

2. Technology: 45

3. Real Estate: 22

4. Fashion and Retail: 18

5. Media: 17

6. Food and Beverage: 15

7. Energy: 12

8. Health care: 11

9. Sports: 10

10. Manufacturing: 10

 

Top 10 Ways to Become a Billionaire

Heirs on the Forbes 400

1. Investments: 19

2. Service: 17

2. Fashion and Retail: 17

3. Energy: 16

4. Food and Beverage: 14

5. Media: 11

6. Manufacturing: 10

7. Real Estate: 5

8. Diversified: 3

8. Technology: 3

8. Health Care: 3

 

http://www.forbes.com/sites/erincarlyle/2013/09/18/how-self-made-forbes-400-billionaires-earned-their-money/

 

I think it depends on which part of the world you are looking at. In developing world, its easier for established companies to make money across the industries especially heavy industries due to crony capitalism, inefficient and protected domestic markets, huge upfront investments and government support required.