Bill Gates lost about $52 billion or 30% of his wealth this week - here's what happened

Time of India

2 days ago

Why did Bloomberg reduce Bill Gates' net worth by $52 billion?
How much has Bill Gates donated to the Gates Foundation?
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How did Steve Ballmer surpass Bill Gates in net worth?
Here's the updated Top 12 richest individuals according to the Bloomberg Billionaires Index as of market close on July 4, 2025:
Rank Name Net Worth (USD) 1 Elon Musk $361 B 2 Mark Zuckerberg $254 B 3 Larry Ellison $253 B 4 Jeff Bezos $244 B 5 Steve Ballmer $172 B 6 Larry Page $163 B 7 Bernard Arnault $161 B 8 Sergey Brin $152 B 9 Warren Buffett $146 B 10 Jensen Huang $139 B 11 Michael Dell $138 B 12 Bill Gates $124 B
What's the reason for Microsoft stock's massive growth?
"No, Charlie, but I'm that loyal."
What's next for Gates, Ballmer, and the billionaire rankings?
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Bill Gates is no longer one of the world's top 10 richest people — and the surprising twist? He now ranks behind his former assistant, Steve Ballmer. According to Bloomberg, Gates' net worth was recalculated on Thursday, dropping by a massive $52 billion, or 30%, due to updated estimates of his charitable donations. This sharp decline pushed the Microsoft cofounder from 5th to 12th place on the Bloomberg Billionaires Index , placing him below Alphabet cofounders, Nvidia's CEO, Warren Buffett, and Ballmer.The sudden shift in Bill Gates' wealth wasn't due to a market crash or poor investments — it was a recalculation based on philanthropy. Bloomberg updated the way it calculates Gates' net worth to better reflect his massive charitable giving, something he has publicly emphasized. In a May blog post, Gates estimated his personal wealth at $108 billion and reaffirmed his plan to donate "virtually all" of it through the Gates Foundation over the next 20 years.Bloomberg adjusted their model accordingly, reducing appreciation rates used in their formula and aligning it more closely with the wealth estimate Gates himself provided.As of December, Bill Gates and his ex-wife, Melinda French Gates, have donated a staggering $60 billion to the Gates Foundation, according to the foundation's official website. Their longtime friend, Warren Buffett, has also contributed a massive $43 billion.Gates plans to give away even more. In his blog, he stated that the foundation is expected to spend over $200 billion before it winds down operations by 2045. This long-term vision for philanthropy directly affects how his wealth is counted by indexes like Bloomberg's.What makes this story even more remarkable is who surpassed Gates — Steve Ballmer, his former assistant and successor as Microsoft's CEO. Ballmer now holds the 5th position on the Bloomberg Billionaires Index with a net worth of $172 billion.Ballmer joined Microsoft in 1980 as an assistant to the president, earning a modest $50,000 base salary and a bonus based on profit growth. That deal turned out to be so lucrative that Microsoft eventually swapped it for a large equity stake. When Ballmer stepped down as CEO in 2014, he retained a 4% stake in Microsoft. That stake has since ballooned in value thanks to Microsoft's stock surge.Microsoft's stock has skyrocketed over the past decade, climbing more than 10x to reach nearly $500 per share. As of now, it's the second-most valuable company in the world, trailing only Nvidia, with a $3.7 trillion market cap.Ballmer, who owns the Los Angeles Clippers, held onto his Microsoft shares while others, like Gates and the late Paul Allen, diversified. In a recent interview on the Acquired podcast, Ballmer recalled a moment when Charlie Munger, Warren Buffett's late business partner, asked him why he never sold his Microsoft stock.Ballmer replied with a hint of humor and loyalty:Now sitting at 12th place with a net worth of $124 billion, Bill Gates seems unfazed. His focus has shifted away from accumulating wealth and toward philanthropic impact. While it's rare for a former assistant to outrank a founder in net worth, Ballmer's case proves that equity ownership — and loyalty — can pay off in a big way.Meanwhile, the top of the Bloomberg Billionaires Index includes big tech names like Larry Page, Sergey Brin, and Jensen Huang, all of whom now rank above Gates. The world of billionaire rankings continues to shift, but Gates' commitment to giving is what's truly reshaping his fortune.His wealth was recalculated by Bloomberg to reflect his large donations to the Gates Foundation.Ballmer kept his Microsoft shares while Gates donated most of his wealth.