Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

Entrepreneurs from Developing Markets Lead the Field in Wealth Accumulation

October 25, 2017 By Young Research

In 1989 only 21% of the people on the Sunday Times Rich List had made their money themselves, the rest were heirs to great wealth. Now, in 2013 the Rich List has essentially flipped, with 80% of those on the list earning their fortunes themselves.

A new study from Barclay’s says that globalization and technology have created a path for entrepreneurs to earn vast fortunes of the type that were once restricted to wealthy heirs.

The outcome of these twin forces of globalisation and  technology has been an explosion of entrepreneurship  around the world and a decline in inheritance as a  determinant of future wealth. Economist Emmanuel Saez  points out that the world’s wealthiest individuals today  tend to be what he calls “the working rich.” “The evidence  suggests that top income earners today are not ‘rentiers’  deriving their incomes from past wealth but rather are  ‘working rich,’ highly paid employees or new entrepreneurs.”

 

Some of the newly wealthy have problems dealing with their changed status.

At its most extreme, the newly wealthy may suffer  from “sudden wealth syndrome,” a term coined by  Psychologist Stephen Goldbart in the dotcom era to  refer to the mixed feelings that can often accompany  the experience of becoming rich very quickly. These can  include anxiety, guilt, identity confusion, overspending and difficulties making decisions. “The quicker you  acquire wealth without really educating yourself and  getting a sound team in place, the more likely the  chances that you are not going to hold onto it,” says Dr. Traeger-Muney.

Perhaps the survey’s most interesting finding is the different ways entrepreneurs earn wealth in different areas of the world. In developed markets savings through earnings were the chief way of accumulating wealth, while in developing markets selling a business or property were responsible for much of the gains in wealth. That would indicate that many of the newly wealthy in these countries are self-made entrepreneurs, while in developed markets many of the wealthy are working for other businesses. This illustrates a vast difference in the way wealth is accumulated in the developed and developing worlds.

 

 

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Automation is Making Markets more Volatile
  • Wealth Shock! “All of a Sudden Their Wealth is Gone”
  • Are Markets About to be Disciplined?
  • Author
  • Recent Posts
Young Research
Latest posts by Young Research (see all)
  • Amazon Sneaking Up on Google and Facebook Ad Share - April 8, 2021
  • Businesses Optimistic As States Ease COVID-19 Restrictions - April 6, 2021
  • Germany Finds AstraZeneca Too Risky for People Under 60 - March 30, 2021

Search Young Research

Most Popular

  • It’s as Simple as 4%? No, Not Anymore
  • Is Inflation Imminent? Prepare Now
  • Your Port Against a Storm.
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Long Live the Dividend King
  • Inflation? Yes.
  • Fidelity Investments #1: Hires 4,000 Focuses on YOU
  • Banks Prepare for Boom
  • The Highest Yielding Dow Stocks
  • Why Service Is King in 1(800)# Teenage Wasteland

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Landmen Shift Focus to Solar and Wind Leases
  • Key West Greetings From the Thirsty Mermaid
  • The Vanguard Wellesley Way
  • Toilet Paper and SPAM: What More You Can Do?
  • Incentivizing People to Stay Home?
  • The Government Cannot Constitutionally Interfere With Gun Ownership
  • French Wine Weather Disaster Worse than 1991, 1997, 2003
  • Key West Breaking News from Dick Young
  • A Pitiful, Helpless Giant?
  • What Happens When Even Logic and Facts Can’t Persuade the Left?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.