Archive for the ‘Richest Man’ Category

It’s official now and matter of pride for all Indians. Mukesh Ambani has been declared as the World’s Richest man, surpassing American software czar Bill Gates, Mexican business tycoon Carlos Slim Helu and famous investment guru Warren Buffett. The credit of this achievement goes to the bull run in the stock market.

Following a strong share price rally on in his three group companies, India’s most valued firm Reliance Industries, Reliance Petroleum and Reliance Industrial Infrastructure, the net worth of Mukesh Ambani rose to $63.2 billion (Rs 2,49,108 crore).

In comparison, the net worth of both Gates and Slim is estimated to be slightly lower at around $62.29 billion each, with Slim leading among the two by a narrow margin.

The five richest people in the world with their net worth

1. Mukesh Ambani ($63.2 billion)

2. Carlos Slim Helu ($62.2993 billion)

3. William (Bill) Gates ($62.29 billion)

4. Warren Buffett ($55.9 billion)

5. Lakshmi Mittal ($50.9 billion)

Warren Buffett, earlier the third richest in the world, also dropped one position with a net worth of about $56 billion.

Ambani’s wealth of about Rs 2,49,000 crore includes about Rs 2,10,000 crore from RIL (50.98% stake), Rs 37,500 crore from RPL (37.5%) and Rs 2,100 crore from RIIL (46.23%).

Slim’s wealth has been calculated on the basis of his stake in companies like America Movil (30%), Carso Global (82%), Grupo Carso (75%), Inbursa (67%), IDEAL (30%) and Saks Inc (10%).

According to information available with the US and Mexican stock exchanges where these companies are listed, Slim currently holds shares worth a total of $62.2993 billion, with more than half coming from Latin American mobile major America Movil. Slim is closely followed by Gates with a net worth of $62.29 billion currently.

Earlier last month, US business magazine Forbes had named Gates as the richest American with a net worth of $59 billion, calculated as on August 30. The magazine had said that a movement of $2 in the share price for Microsoft, the world’s biggest software maker, could “add or subtract $1 billion” from his wealth.

Since August-end, Microsoft’s share price has risen by $6.58 (based on yesterday’s closing on Nasdaq at $35.03), which results into a gain of $3.29 billion in Gates’ wealth based on Forbes assumption.

Besides a stake in Microsoft, Gates’ wealth also includes the commission and license fees earned by him and gains through his shares in an investment holding company that invests across the market.

Gates is followed by Buffett at the fourth place in the league of the world’s richest with a net worth of $55.9 billion through his holding in his investment vehicle Berkshire Hathaway and in other companies. At the end of August, Buffett’s wealth stood at $52 billion, as per the Forbes magazine. Berkshire Hathaway’s share price has gained by about 7.5% since then.

Earlier on September 26, Ambani had overtaken steel czar Lakshmi Mittal to become the richest Indian in the world.

Mittal currently ranks as the fifth richest in the world with a net worth of $50.9 billion through his 44.79% stake in world’s biggest steel maker ArcelorMittal.

While most of Mittal’s wealth comes from his steel empire, though he has also spread his wings into businesses like oil and real estate, those of Ambani and Gates are mostly through petrochemicals and software respectively. However, Buffett and Slim are making money from investments across a host of sectors.

source: Business Standard

Following is an extract on the topic from his AGM speech delivered on 12th Oct 2007 as posted by IndiaInfoline.com:

 

Recently, there have been several reports in the media on my personal wealth.

Frankly, I am amused by these reports.

Because I have never thought of myself in these terms. Nor have I worked in any way for these epithets.

The money you accumulate merely gives you an opportunity to make a difference.

But only if we make use of it to create wealth for the nation and to look for a social return.

I measure my success by the value that I create for my shareholders and the assets that we, as a company, create for the nation as a whole.

My wealth and your wealth are inevitably linked to our growth.

If Reliance grows and India prospers, it matters little to me whether my personal fortunes are measured in billions or millions.

True wealth lies in what you give to society and to the country, the real assets that you build, the institutions you nurture and the contribution you make to all-round prosperity.

And how you empower young people.

I am proud of the human capital I have helped build.

Those thousands of young people who have made Reliance what it is today.

And who are raring to take India and Reliance to greater heights.

Finally, I believe true wealth consists of what we create for you, dear Shareowners.

This is what I would continue to strive for, through Reliance.

This is what I have learnt from Dhirubhai Ambani.