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In this article we share five sectors that have grown during COVID-19

Impacts of Covid-19 upon HNWIs

COVID-19 has certainly brought about financial burdens for all segments of society, from the working class to LHNWI (Low high net worth individuals) Even UHNWI (ultra-high net worth individuals) have been impacted in some way or another. However, it seems that some segments have been less impacted than others when it comes to global wealth and Covid-19.

The coronavirus has brought about financial devastation across multiple business sectors and industries. This includes individuals across various sectors and facets of the business; be it an employee, an owner, or an investor. Due to COVID-19, the first half of 2020 has seen; the stock market crash, unemployment rise, brick and mortar retail collapse, well know hospitality and travel companies file for bankruptcy, luxury brands liquidate, dividends held from being distributed, annual bonuses not being paid, and the ECB and other central banks stepping in to mitigate a massive economic disaster for individuals and companies that cannot afford to pay debts.

Despite the financial downfall for many, according to the billionaire bonanza report, 34 of the US’s wealthiest billionaires actually saw their wealth increase by tens of millions during the crisis period. (source:  It is not pleasant to report that anyone would benefit from a global-wide pandemic, but such an increase in wealth is feasible if put into context of having investments or holdings in industries where the supply and demand has skyrocketed due to the virus.

A feasible and completely comprehensible example of such wealth increase is that of Jeff Bezos, owner and large shareholder of Amazon. By June 2020, Jeff Bezos’ wealth had increased to $150 Billion. On the contrary to physical retail, online sales have exploded during the pandemic, and Bezos’s wealth has grown in parallel to the company’s success. This is a direct result of the simple principles of market positioning, supply and demand, and knowing how to react quickly to capitalise on a situation. While other companies were making people redundant, Amazon employed 175,000 people to facilitate the demand within its warehouse, shopping and delivery departments. Amazon would not have been able to profit as much if it had not been quick to act. Such growth in personnel also came at a cost, as the company estimated expenditure of $500M in increased wages. (source: https://www.businessinsider.com/amazon-hiring-75000-more-workers-during-coronavirus-outbreak-2020-4?r=US&IR=T)

Jeff Bezos is not the only billionaire to see such growth in wealth during Covid-19. The report mentioned above also highlights that eight other billionaires have seen their wealth push north of 1 billion during the pandemic, and this report focuses predominantly on the US. This means that we are sure that similar trends would be observed in other countries as well.

While Amazon deals more with tangible goods, other companies that deal with non-tangibles like Netflix, Google, Youtube, and Facebook have also benefited massively during this period. Investors and founders involved in these businesses, or ones that are similar in nature, have seen certain rewards during this period. (internal link – next article)

It is certainly not rare to see billionaires and high net worth individuals struggling less and having shorter-lived economic challenges during such periods. HNWIs are able to deal with economic situations like these much more proactively than others. Further to this, they are able to turn around quickly from recessions or similar economic fluctuations. The wealthy are enabled financially to redistribute funds into stocks and shares of companies that were bound to strive as a consequence of the pandemic.

Covid-19 has certainly impacted global wealth during the first half of 2020, but we are certain that HNWIs will be able to recover swiftly and lead the way for larger segments of the global population thereafter.