Hedge fund billionaire Daniel Loeb recently found himself in hot water after it was discovered that his superyacht had damaged Belize’s fragile barrier reef. Operators of the Samadhi — Buddhist for “a state of meditative consciousness and enlightenment” — had anchored the superyacht to live corals at the Lighthouse Reef Atoll, a Unesco World Heritage site.
Loeb was apologetic and promised to help fix the damaged reef. But the incident speaks volumes about the global billionaire class, whose fortunes grew by 25 percent last year. Today, the twenty-six richest people have more wealth than the world’s poorest 3.8 billion. What are the super-rich doing with all this money? For one thing, they’re buying boats.
Here are four things we can learn about the super-rich from their superyachts.
1. They Live in Their Own World
There are nearly five thousand superyachts (boats longer than thirty meters) sailing the world’s seas. But unless you’re a billionaire, a friend of a billionaire, or a pirate, you’ve probably never even seen a superyacht, let alone stepped foot on one.
On board these floating palaces are the uber-rich — the high-net-worth individuals who run the world. These individuals pull the levers of the global economy, but they are, for the most part, hidden from ordinary people, moving from their luxury high-rises to their private planes to their enormous boats.
This closed and relatively small network of elites is demonstrated and solidified through the consumption and display of luxury goods. The billionaires — from Saudi oil tycoons to Russian oligarchs to Silicon Valley tech royalty — meet at the Monaco Yacht Show to compare mast size, trade tips on how to protect a Picasso from saltwater damage, and form business partnerships.
2. They Are Above the Business Cycle
Manufacturing output is declining in a growing number of countries around the world, but yacht production is going strong. Superyacht orders have grown year over year for the past five years, and yacht builders in Britain, Italy, Germany, and the Netherlands expect to see 20 percent growth in the coming decade. The .01 percent aren’t blown off course by economic headwinds.
In fact, when the business cycle goes south, and ordinary people are sucked into its maw, the super-rich often benefit. While the UK’s British Home Stores chain tanked, and 20,000 pensioners were set adrift, Topshop tycoon Philip Green was at his leisure on his £100 million superyacht Lionheart.