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Bloomberg Markets Magazine

Bloomberg Markets Magazine February/March 2019

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United States
Bloomberg Finance LP
Back issues only

in this issue

2 min.

Guilherme Benchimol’s XP Investimentos is inescapable in Brazil these days, says Felipe Marques. “When every interview you do, from billionaire asset managers to high-profile banking CEOs and regulators, always seems to end up on the same topic, it’s usually a sign there’s something to write about there,” he says. So Marques teamed up with fellow São Paulo-based reporters Cristiane Lucchesi and Vinicius Andrade and New York-based editor Steve Dickson to report on the fast-growing firm (page 40). XP has done the seemingly impossible, Marques says: It’s persuaded Brazilians to leave the safety—and low-yielding savings products—offered by their banks. Livia Yap covers the Singapore stock market in her role as the local equities reporter. Over the past two years she’s had a close-up view of a market in decline—a trend at odds…

5 min.
what mistakes do wealthy families make?

A FAMOUS LINE IN an F. Scott Fitzgerald short story declares that the very rich are different from you and me. The obvious difference: While the 99.9 percent strive to make a living, the 0.1 percent are working out what to do with the wealth they already have. Preserving and investing and donating and spending wealth is more than a full-time job and requires multiple types of expertise. Pitfalls abound, especially within families. Speak to a few family office experts, and you’ll hear the phrase “When you’ve seen one family office, you’ve seen one family office.” In other words, there’s no uniform method for handling great wealth. But press them on common errors, and they have a lot to say about patterns that trip up even those with the best…

9 min.
the changing faces of wealth

A DENIZEN OF an elite charity ball in New York found himself disoriented one night, not by the rapid fire of flashbulbs around Victoria Beckham or by the glittering night sky projected on the walls, but by the absence of his usual crowd. “Who are these people?” he asked with more curiosity than disdain as he surveyed the room of more than a thousand guests, eager for an introduction. As the ranks of the rich swell, moments such as these are increasingly common. The culture of the wealthy is disrupted once again. The number of people with serious wealth across the globe is awesome at the moment, driven by the spread of capitalism and advances in technology. As norms are shattered, the rich gain new power to define their roles and responsibilities. In…

1 min.
liquid gold

SEVEN TIMES A DAY, the Perth Mint hosts a public gold pour at its downtown location in the Western Australian city. A 14-pound gold bar is melted at 1,945F (1,063C) in a crucible made of clay and graphite. The liquid is then poured into a cast-iron mold, where it hardens into a bar in about 90 seconds. It needs an additional 15 seconds from the time it’s placed in a quenching tank filled with tap water until the bar is “cool to the touch,” Chief Executive Officer Richard Hayes says. The same gold bar has been melted and cast more than 65,000 times since the mint opened its doors to visitors in 1993, Hayes says. In that time, it has been worth as little as $51,000—in 1999—to as much as $390,000—in…

4 min.
who’s up and who’s down among the world’s richest people

THE BLOOMBERG BILLIONAIRES INDEX updates the concept of a rich list by tapping live data to monitor the fortunes of the world’s wealthiest people day to day. To see the daily ranking of the top 500 billionaires around the globe, run {RICH <GO>}. You can filter the list by country, region, gender, age, source, and industry. Want to see Chinese women billionaires? Tick the boxes next to China and Female and click on the gray Results button at the bottom of the screen. The Index updates the net-worth figure for each billionaire every business day after the close of trading in New York, based on share prices in public markets, economic data, and Bloomberg News reporting. A team of reporters around the world maintains the list and periodically adds and subtracts billionaires. Every…

3 min.
slice and dice the buyback trend with these tools

U.S. COMPANIES SPENT more money than ever in 2018. What were they buying? In many cases, they were buying back their own shares. Companies that trade on U.S. exchanges announced more than $900 billion in buybacks last year, according to data compiled by Bloomberg. The total may reach $1 trillion, which would make 2018 the first year to surpass that level. The biggest buyback: Apple Inc. announced in May that it would devote $100 billion to repurchasing its shares. The average buyback size was $937 million; the median was $100 million. Buybacks occur when a company uses its available cash or borrows money to purchase its own shares in the open market. Low interest rates, which made borrowing cheap, helped drive the trend. You can find data on buybacks with a simple search.…