The real reason why Warren Buffett lost world’s 3rd richest person spot to Mark Zuckerberg

By: |
Updated: July 10, 2018 12:23:10 PM

Mark Zuckerberg's net worth was about $373 million more than Warren Buffett, the 87-year-old chairman and chief executive officer of Berkshire Hathaway Inc on Sunday.

The real reason why Warren Buffett lost world's 3rd richest person spot to Mark ZuckerbergWarren Buffett is no longer the world’s third-richest person; Mark Zuckerberg is. (Image: Reuters)

Warren Buffett is no longer the world’s third-richest person; Mark Zuckerberg is. On Sunday, the Facebook CEO finally topped the net worth of the Oracle of Omaha by hitting $81.6 billion. Mark Zuckerberg’s net worth was about $373 million more than Warren Buffett, the 87-year-old chairman and chief executive officer of Berkshire Hathaway Inc.

With Mark Zuckerberg on the third spot, it’s become the first instance when the three wealthiest people in the world have made their fortunes from technology. The first two spot belongs to Amazon’s Jeff Bezos and Microsoft’s Bill Gates. Mark Zuckerberg, more than a half-century younger than Warren Buffett, rose to the third rank mainly gaining $8.8 billion this year as Facebook shook off a data-privacy crisis that caused its stock to tumble 18%.

However, the real reason why Warren Buffett lost the third place to Mark Zuckerberg could be attributed to the former’s charitable giving, which he kicked off in earnest in 2006. So far, Warren Buffett has donated about 290 million Berkshire Hathaway Class B shares to charities, most of it to Gates’s foundation by Bill Gates. Those shares are now worth more than $50 billion, according to data compiled by Bloomberg.

Mark Zuckerberg has also pledged to give away 99% of his Facebook stock in his lifetime. Mark Zuckerberg trails Jeff Bezos, the world’s richest person with a $144.8 billion fortune, and Bill Gates, with $92.8 billion. Technology fortunes make up about a fifth of the more than $5 trillion in wealth tracked by the Bloomberg index, more than any other sector.

Warren Buffett, now the fourth-richest person in the world, has earned his fortune from textile manufacturing business and then later expanding to insurance and other investment. Meanwhile, Warren Buffett is beginning to say farewell to his equity derivatives. “Not a lot of companies besides Berkshire could have written this business. It demonstrates the unique power of this franchise and their size,” Jim Shanahan, an analyst at Edward Jones told Bloomberg.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Axis Bank-led consortium puts Lanco hydel plant in Uttarakhand up for sale
2Bad loan, MTM provisions may extend banks’ losses
3Haryana’s Bhavantar Scheme: A mere Rs 12 lakh paid to tomato farmers, price rises fourfold since