Understanding How The Richest Person In The World Is Determined

Introduction

Forbes releases an annual list of billionaires all over the world, and it is always fascinating to see who the richest person in the world is. However, have you ever wondered how the richest person in the world is determined? How is it that someone is considered the wealthiest person on the planet, and what factors are taken into account? In this article, we will delve into the intricacies of determining the richest person in the world.

Methodology Used By Forbes To Determine The Richest Person In The World

Forbes, the top business magazine, is widely considered the leader in determining the richest people in the world. Forbes uses a straightforward process to determine the wealthiest people. They add up all assets owned by an individual, based on the publicly traded stock price on a specific date.

The calculation includes both private and public assets, like real estate, art, yachts, and more, along with shareholdings. To be considered for the Forbes billionaire list, individuals must have a net worth of $1 billion or more. Forbes people work closely with global tracking companies to arrive at their figures and ensure they are accurate.

The Impact Of Market Fluctuations

Market fluctuations can significantly affect an individual’s net worth. Suppose the stock market rises or falls dramatically, an individual’s assets’ values may change dramatically too. For instance, Elon Musk, for a brief period, overtook Jeff Bezos as the wealthiest person based on the stock price of Tesla, which soared higher.

Likewise, Bill Gates net worth increased significantly as Microsoft’s share prices kept reaching new highs. Conversely, Dalian Wanda, a Chinese real estate developer, was considered the second-richest person in the world in 2017, but the developer lost over $9 billion in the same year due to a crackdown on credit in China, and as so, Dalian Wanda vanished from the list altogether. Thus, it can be seen that market fluctuations can have a profound impact on determining the richest person in the world.

Criticism And Limitations

While Forbes is the most trusted source in determining the richest person in the world, it has received significant criticisms over the years. Many question the fact that Forbes bases its calculation on share value, which is ephemeral.

Also, Forbes doesn’t consider government leaders like Vladimir Putin to be among the wealthiest individuals in the world despite the enormous control they wield over their nations and state resources. Additionally, only self-made billionaires with a minimum of $1 billion can make it to the list. Consequently, inherited wealth and political influence are not factored.

Conclusion

In conclusion, determining the richest person in the world entails a complex process. Forbes has been considered the leader in ranking the wealthiest individuals globally, assuming multiple criteria to assess an individual’s wealth. However, market fluctuations can significantly impact an individual’s net worth and fortunes. While Forbes methodology is widely accepted, it has its own limitatiouns and critics.

Finally, it is essential to note that wealth does not always equate to happiness. Similarly, wealth may come and go, but personal satisfaction, life experiences, and contentment with oneself cannot be calculated.

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