Why Bill Gates is in the worst position in Forbes' 30-year ranking of billionaires

If you're 30 or under, you've always seen Microsoft co-founder Bill Gates rank first or second in the ranking of the 400 richest people in the United States, organized annually by the US magazine Forbes.

But, by all appearances, this seems to have come to an end.

For the first time since 1991, Gates is not top or deputy on the list; this year, he "bitters" fourth place, with a fortune of $134 billion (R$735 billion), behind Amazon founder Jeff Bezos, Tesla CEO Elon Musk, or Facebook CEO Mark

"A portion of Gates' net worth - at least $5.7 billion in publicly traded shares - went to ex-wife Melinda French Gates after they announced their divorce in May. If only their marriage and fortune had stayed. intact, Gates would be richer than Zuckerberg, in third place this year," writes Forbes.

According to the magazine, nearly a quarter of Gates' fortune comes from his estimated 1.3 percent stake in Microsoft (valued at $31 billion as of September 3rd). The rest, from his investment firm, Cascade Investment LLC, along with other assets such as his vast $143 million property in Medina, Washington, nicknamed "Xanadu."

"Through Cascade, Gates owns a controlling stake in Four Seasons hotels, 14% of auto dealership AutoNation, shares in waste management company Republic Services, tractor maker Deere & Co., Canadian National Railway and much more." says Forbes.

The composition of Gates' fortune has also changed significantly since 1986, when Microsoft was traded on the stock exchange. At the time, he owned 45% of the company's shares, valued at $315 million ($786 million at present values).

The following year, however, Microsoft's rallying stock made him the world's youngest billionaire, with an estimated worth of $1.25 billion at age 31.

In 1990, Microsoft recorded revenues in excess of $1 billion for the first time, becoming the largest computer software provider at the time.

As a result, as early as 1991, Gates jumped from 16th to 2nd place in the ranking of richest Americans, with a net worth of $4.8 billion. And the following year, 1992, he became the richest person in the United States, with a fortune estimated at $6.3 billion.

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After Gates stepped down as CEO in 2000, his net worth dropped for the first time — though he still remained at No. 1 on Forbes' richest 400 list.

That year, Microsoft's stock price dropped significantly amid the Internet bubble as it fended off US government antitrust charges.

It was at this time that Gates transferred $20 billion of Microsoft stock to the Bill and Melinda Gates Foundation, which he created with his now ex-wife, in 2000, further reducing his net worth.

"Although he continued to make significant donations to his foundation, which has now become the world's largest private philanthropic organization, Gates continued to be the richest person in the United States until 2017," says Forbes.

For a brief period during 2008, Gates' longtime friend Warren Buffett even surpassed him as the holder of the greatest wealth in the United States, but by the time Forbes' list was published that year, Gates had already regained his footing.

From 1994 to 2020, Bill and Melinda Gates donated $36.8 billion to the Gates Foundation, mostly in Microsoft stock donations.

It wasn't until 2018 that, for the first time, Gates lost his lead - to Jeff Bezos, founder of Amazon.

In late 2020, Musk overtook Gates, thanks to Tesla's impressive rally on the stock market.

In August of this year, Gates was bested by Zuckerberg for the first time due in large part to stock transfers to Melinda.

Forbes, however, has a caveat.

According to the magazine, the rankings of billionaires are "volatile".

Proof of this was that, after this year's list of the 400 richest Americans was finalized, Facebook's shares registered a substantial and unexpected drop due to the blackout in social media and also to issues related to the mental health of teenagers on Instagram.