If the stock-markets crash tomorrow, will people like Gates, Buffet, Carlos Slim Helu & Ambani become bankrupt

Question

Why or why not? I've read that their wealth is overly dependent on stocks. Furthermore, is there any way to predict the market perfectly?

Answer 1

Microsoft did crash and Bill Gates lost some money but was fine overall.

Remember that 'crash' doesn't mean going to zero.

Answer 2

They may be bankrupt in the sense that they owe more than they own, but I doubt that they would suffer too badly.  They're all smart enough to keep some assets in liquid form - cash, gold, and other instruments that can easily be converted.  I would suspect that they will also have it structured in such a way that it is hidden or protected from a bankruptcy court.

As to predicting the market perfectly - ain't no such way.  There's too many variables that affect the market, spread over the entire world.  I am no expert, but so far the best general advice I have heard is to diversify your holdings, and use dollar cost averaging as you invest.

Answer 3

On paper they would lose a lot of money at least temporarily.  Buffet's Berkshire Hathaway lost 25 percent of its value in the 1987 crash.  He just used it as an opportunity to buy more on the cheap.  And he made more when the market recovered.

Answer 4

These people own real businesses, not paper currency.

Even if they lose all of it in the crash, their businesses will raise the money back within a year.

These people sell paper to us investors. Just issue some d**n million shares priced at 50$ a share, and you instantly make $50Million out of thin air. Thats how the game works...

Answer 5

No. The stock market never fell more than 50% and so instead of them being worth $40 billion, say, they will be worth $20 billion. This is still a little more than I have and probably you as well!.

Answer 6

no they won't go bankrupt (they are worth billions) and no there is no solid way to predict the market