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Billion-Dollar Women: How Do They Build, Spend, and Share Their Empires?

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The Rise of the Female Billionaire: A New Era of Wealth and Philanthropy

The global landscape of wealth is shifting, with women increasingly claiming their place among the world’s richest individuals. A new report from Altrata reveals a significant rise in the number of female billionaires, altering not only the demographics of extreme wealth but also reshaping philanthropic priorities and investment strategies. This growing female presence, fueled by inheritances and a surge in female entrepreneurship, signifies a profound change in the dynamics of global high-net-worth individuals, challenging traditional norms and ushering in a new era of wealth management and giving.

Key Takeaways: The Female Billionaire Revolution

  • A Growing Force: Women now comprise 13% (431) of the world’s 3,323 billionaires, a number steadily increasing over the past decade.
  • Inheritance Plays a Key Role: A staggering 75% of female billionaires inherited at least a portion of their wealth, with 38% inheriting their entire fortune, in stark contrast to male billionaires.
  • Distinct Philanthropic Focus: Female billionaires exhibit a stronger commitment to nonprofit and social organizations, with nearly one in five dedicating most of their professional time to such endeavors.
  • Diversified Investment Strategies: Women billionaires hold a larger proportion of their assets in private holdings and liquid assets compared to men, reflecting the nature of their inherited wealth.
  • Different Spending Habits: Luxury real estate and art are favored acquisitions for female billionaires, whereas male billionaires show a greater penchant for “toys” like yachts and private jets.

The Female Billionaire Census: A Shifting Landscape

The Altrata Billionaire Census paints a compelling picture of the evolving landscape of ultra-high-net-worth individuals. While women still represent a minority of the billionaire population, their presence is undeniably growing. This growth is attributed to several factors detailed in the report, including a rise in female entrepreneurship, evolving societal attitudes toward women in business, and, most significantly, the Great Wealth Transfer.

The Power of Inheritance

The report highlights the pronounced role of inheritance in the accumulation of female billionaire wealth. Three-quarters of female billionaires received at least a portion of their wealth through inheritance, significantly outpacing the 5% of male billionaires who inherited their fortunes. This disparity is stark, with a full **38% of female billionaires inheriting all their wealth**, including three of the world’s wealthiest women: Alice Walton ($104 billion), Julia Flesher Koch and family ($76 billion), and Françoise Bettencourt Meyers ($73 billion). This trend is likely to intensify with the forthcoming **Great Wealth Transfer**, wherein women are expected to inherit up to $30 trillion in the coming decade, according to Cerulli Associates.

Self-Made Success: A Smaller, but Significant, Group

While inheritance plays a dominant role, it’s crucial to recognize that a significant portion of female billionaires are self-made. The report notes that 25% of women billionaires achieved their wealth independently, compared with 66% of male billionaires. This highlights the growing success of female entrepreneurs and their contributions to the world’s wealth. Despite representing a smaller percentage compared to self-made male billionaires, this number underscores the increased opportunities and achievements of women in business, and reflects a changing dynamic within the global economy. Their contributions are instrumental in diversifying the approaches to wealth creation and leadership in high-net-worth circles.

Philanthropy and Investment: A Divergent Approach

The report also reveals significant differences in how male and female billionaires allocate their resources. These differences are not simply about the amount given to charity but the type of organizations supported and the strategies employed for investing the wealth itself. **This is not to say men are less philanthropic but is a clear indicator of different priorities.**

A Focus on Social Impact: Female Philanthropy

Female billionaires demonstrate a considerably stronger inclination toward philanthropy, with a marked preference for nonprofit and social organizations. The report suggests that the prevalence of inherited wealth among women contributes significantly to this increased charitable activity. The report explains that this engagement may be in part explained by “fewer commercial commitments” and “a strong link between inherited wealth and earlier engagement in philanthropy, welfare, and social justice.” The high proportion of inherited wealth allows them the time and flexibility to dedicate to causes that resonate with their personal values. Nearly one in five female billionaires dedicate their professional time to nonprofits, a percentage far exceeding the 5% observed among their male counterparts.

Portfolio Diversification: A Distinctive Investment Approach

Investment strategies show divergence between genders as well. Due to the higher prevalence of inherited private companies, female billionaires tend to hold a more substantial portion of their wealth in private holdings (35% versus 28% for men) and liquid assets (39% versus 30%). Conversely, male billionaires hold a significantly higher percentage (40%) of their wealth in stocks compared to only 22% for women, reflective of the high concentration of tech-focused billionaires who lead publicly traded companies.

Lifestyle Choices: Reflecting Different Values

The Altrata report further highlights discernible differences in how male and female billionaires spend their wealth on lifestyle choices, underscoring the variation in priorities and interests.

Luxury Assets vs. “Toys”: Divergent Spending Patterns

While both genders engage in luxury, their preferences differ significantly. **Female billionaires display a stronger preference for luxury real estate and art, with a 1.5 times higher likelihood of owning real estate exceeding $10 million.** In contrast, male billionaires are far more likely to invest in “toys” like private jets, yachts, and high-end cars, three times more likely to own expensive cars, and over twice as likely to have a yacht.

Hobbies That Reflect Personal Fulfillment: Women Supporting Non-Profits, Men Supporting Sports

Even their hobbies reflect distinct priorities. Philanthropy emerges as the most prevalent hobby cited by female billionaires (71%), illustrating a strong dedication to social causes and community engagement. For male billionaires, **the most common hobby is sports (71%)**, potentially aligning with competitive pursuits and leisure activities. The contrasting hobbies highlight the differing ways men and women prioritize their personal time and their areas of interests and influence.

In conclusion, the Altrata Billionaire Census underscores a noteworthy shift in the global wealth landscape. The growing number of female billionaires, driven by inheritance and entrepreneurial success, is not just a demographic change but a fundamental alteration in the dynamics of wealth generation, investment, and philanthropy. The divergence in investment strategies, philanthropic inclinations, and lifestyle choices illustrates the unique perspectives and priorities of female billionaires and portends a dynamic and evolving future for high-net-worth individuals globally.

Article Reference

Brian Johnson
Brian Johnson
Brian Johnson covers business news and trends, offering in-depth analysis and insights on the corporate world.

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