Billionaire Warren Buffett, known as the "Oracle of Omaha," has reclaimed his position among the five richest individuals in the world following significant losses suffered by the ultra-wealthy globally since the decline of the COVID-19 pandemic and increased stock market turmoil stemming from the Russia-Ukraine war. The legendary 91-year-old investor's net worth is approximately $117 billion, placing him behind Elon Musk, Jeff Bezos, Bernard Arnault, and Bill Gates on the Bloomberg Billionaires Index, which was accessed by "Al Arabiya.net."
Unlike all the other ten billionaires on the world's wealth list, Buffett was the only winner in 2022, gaining about $7.8 billion. In contrast, Musk, the world's richest man, lost $62 billion, while Gates saw a decrease of $12.5 billion in his fortune. The billionaire founder of Facebook, Mark Zuckerberg, has seen nearly half of his wealth evaporate, losing $54 billion this year, bringing his total down to $71 billion from $125 billion at the beginning of January.
No tech companies escaped the losses, as Alphabet co-founders Larry Page and Sergey Brin each lost more than $14 billion of their wealth separately during 2022. The shares of Buffett’s Berkshire Hathaway have risen by more than 7% so far this year, thanks to his faith in diversification. Although 44% of Berkshire's portfolio is concentrated in Apple shares, which have fallen by 10% this year, it is widely diversified, allowing the company to withstand the sell-off of tech stocks.
Buffett has long recommended that investors place their money in index funds, which hold every stock in the index, thereby providing automatic diversification. In 2017, he stated to CNBC that for individuals looking to build their retirement savings, diversified index funds "make the most practical sense all the time."
