Slim Beats Gates in First Daily Billionaire Ranking

By Matthew G. Miller and Peter Newcomb | Bloomberg 

Carlos Slim, the telecommunications tycoon who controls Mexico's America Movil SAB (AMXL), is the richest person on Earth, according to the Bloomberg Billionaires Index, a daily ranking of the world's 20 wealthiest individuals.

The 72-year-old's net worth fell $478.4 million in a day to $68.5 billion as of the close of markets on March 2, as U.S. moguls Bill Gates and Warren Buffett placed second and third on the list compiled by Bloomberg News. Brazil's Eike Batista, who ranks 10th, still covets the top spot after vowing a year ago that he'd become the world's wealthiest man by 2015.

"I'm competitive," Batista, who trails Slim by almost $39 billion, said in a March 2 telephone interview from Rio de Janeiro. "It's Brazil's time to be No. 1. Brazilians have always admired the American dream. What's happening in Brazil is the Brazilian dream and I happen to be the example."

The Bloomberg Billionaires Index takes measure of the world's wealthiest people based on market and economic changes and Bloomberg News reporting. Each net worth figure is updated every business day at 5:30 p.m. in New York. The valuations are listed in U.S. dollars.

Today's ranking was published with the release of new billionaires profile pages in the Bloomberg Professional service. The profiles feature a transparent analysis of how each billionaire's fortune was calculated.

Slim's fortune has increased 11 percent this year, according to the index. A spokesman for Slim didn't immediately return a telephone request for comment.

Gates, Buffett

Gates, 56, co-founder of Microsoft Corp. (MSFT) in Redmond, Washington, is worth $62.4 billion, down $102.1 million on March 2 and up 11 percent year to date.

The fortune of Buffett, 81, chairman of Omaha, Nebraska- based Berkshire Hathaway Inc. (BRK/B), declined $336.9 million to $43.8 billion on March 2 and is up 2.4 percent in 2012. Almost all of Buffett's wealth is held in Berkshire Hathaway, the publicly traded holding company he has run since 1965.

The combined net worth of the 20 richest people is $676.8 billion. Nine are Americans, including three from the family of Sam Walton, the founder of Wal-Mart Stores Inc. (WMT)

Number seven is Larry Ellison, 67, chief executive officer of Redwood City, California-based Oracle Corp. (ORCL), the world's third-largest software maker after Microsoft and SAP AG. (SAP) His $38 billion fortune puts him $4 billion ahead of brothers Charles and David Koch, who each own 42 percent of Koch Industries Inc., one of the biggest closely held companies in the world by revenue. Charles, 76, and David, 71, control the Wichita, Kansas, refiner and chemical maker.

Batista, 55, whose investments range from iron ore to coal, is worth $29.8 billion, up $133.9 million on March 2. His fortune has grown 32 percent this year, the most on the list.

The House Wins

Sheldon Adelson, the casino magnate who owns 47 percent of Las Vegas Sands Corp. (LVS), which operates resorts in Macau and Las Vegas, is number 13 with $25.7 billion. Adelson, 78, and his family have pledged at least $10 million to a super-PAC supporting Newt Gingrich, a Republican presidential candidate.

Liliane Bettencourt, 89, who with her family owns 31 percent of Paris-based cosmetics companyL'Oreal SA (OR), is last on the ranking. Bettencourt was the subject of an international scandal in 2007 when her daughter, Francoise Bettencourt Meyers, filed a lawsuit accusing a family friend, photographer Francois- Marie Banier, of exploiting her mother's frail state. Evidence later revealed Bettencourt had granted more than $1 billion in cash and gifts to Banier. In October, Meyers and two grandsons became guardians of the clan's $22.4 billion fortune.

Diluting Zuckerberg

Mark Zuckerberg, the 27-year-old founder of Facebook Inc. (FB), the world's largest social-networking company, didn't make the cut. Based on a roughly $100 billion valuation the Menlo Park, California-based company has been trading at in the private market, Zuckerberg's stake may be worth $21 billion, or about 25 percent less than previous estimates, once Facebook holds its initial public offering.

The reason: Facebook will issue more than 500 million shares of its Class B stock at the offering, diluting Zuckerberg's ownership to 21 percent after he exercises 120 million options and sells about 42 million shares to cover the tax bill associated with the gain from those options.

Sweden's Ingvar Kamprad is the richest European, according to the index, ranking fourth globally with a $42.5 billion net worth. Kamprad, 85, controls Ikea Group, the world's largest furniture retailer, through a series of trusts and foundations he asserts he doesn't own.

Luxury Goods

Bernard Arnault, the chairman of LVMH Moet Hennessy Louis Vuitton SA (MC) , places fifth. The majority of Arnault's $42.3 billion comes from his stake in Paris-based LVMH, the world's largest maker of luxury goods. Arnault, 63, controls about 46 percent of LVMH's outstanding stock through his family group, according to the company's latest annual report.

Amancio Ortega, whose publicly traded Inditex SA (ITX) owns the Zara clothing chain, is Spain's wealthiest individual and sixth in the world with a $38.8 billion fortune. Ortega, 75, has invested dividends from Arteixo-based Inditex into a real estate portfolio that owns office and retail properties in the U.S. and Europe.

No Russians appear in the index as falling metals prices hurt the fortunes of many of the richest oligarchs. Alisher Usmanov, 58, the Muscovite who controls the Metalloinvest metals and mining company and Digital Sky Technologies, which currently owns 5.5 percent of Facebook, is Russia's wealthiest person thanks to a $20.1 billion fortune.

Asia's Wealthiest

Mukesh Ambani, 54, leads Asians with a net worth of $26.8 billion, down $185.4 million in a day. His fortune is up 25 percent this year, according to the Bloomberg Billionaires Index, as his shares in India's top company by market value, Mumbai-based Reliance Industries Ltd. (RIL), have risen 17 percent.

Hong Kong's Li Ka-shing, nicknamed "Superman" by the local media for his investing prowess, ranks second in the region, with $25.8 billion. Li, 83, owns large stakes in Hong Kong-based property developer Cheung Kong Holdings Ltd. (1), Hong Kong shipping and ports operator Hutchison Whampoa Ltd. (13) and Husky Energy Inc. (HSE), the Calgary-based energy company.

Lakshmi Mittal, the India-born chairman of ArcelorMittal (MT), the world's biggest steelmaker, is the third-richest Asian, with holdings valued at $23.6 billion. In addition to his ArcelorMittal stake, the 61-year-old London resident owns hundreds of millions of dollars in U.K. real estate.

On the rise: Gina Rinehart, the Australian mining heiress who is worth $20.4 billion. Rinehart, 58, the daughter of the man who discovered the mines that made Australia the world's biggest iron ore exporter, inherited perpetual royalty rights to some of Rio Tinto Ltd. (RIO)'s Hamersley mines in addition to other thermal and iron-ore deposits throughout the country.

Soaring demand for coal and iron ore from China have made Rinehart's assets attractive to acquisitive industrial companies. In separate deals in the past year, steelmakers Posco and GVK Power & Infrasture Ltd. (GVKP) agreed to pay a combined $2.9 billion for pieces of Rinehart's empire.

To contact the reporters on this story: Matthew G. Miller in New York atmmiller144@bloomberg.net; Peter Newcomb in New York at pnewcomb2@bloomberg.net

To contact the editor responsible for this story: Matthew G. Miller at mmiller144@bloomberg.net

http://finance.yahoo.com/news/slim-beats-gates-first-daily-000000725.html

The Secret to Successful Investing: Consistency

By Stephanie Hamilton 

Investing can be tricky business. Even for the most well-informed and experienced investors, uncertainties and unpredictable business climates create lots of question marks. In an effort to stem some of the uncertainty, investors are continually searching for the “secret” – the investment strategy used by those who have experienced profound success. If you’ve been searching for that secret, you may be surprised to learn that it can be summed up in just one word: consistency.

Forbes magazine recently reviewed the strategies of three of the world’s most successful investors: Dennis Gartmen, Warren Buffett and Puggy Pearson.

What’s most interesting about their strategies is not the similarities, but the differences. The three men listed their top three rules – the rules from which they never waiver when investing – and none of them were the same.

Warren Buffett on Patience

Warren Buffett emphasized patience over knowledge. He believes it’s more important to be patient than it is to know a lot of stuff. A good investor, he believes, waits out the storms – the sharp drops in value, the potential takeovers and mergers – because stock value usually rebounds, and possible mergers rarely come to fruition. He encourages people to cultivate a willingness to go against popular opinion, to gather information and make their own decisions.

Dennis Gartman on Knowledge

In contrast, Dennis Gartman places a fair amount of emphasis on knowledge. In particular, he encourages investors to pay attention to the management styles and issues. Where there’s one management-related problem, he surmises, there are likely more. And when a problem is discovered, the investor should pull his money and move onto something else. Gartman also believes that investors should spend time evaluating both the fundamentals and the technical analysis of potential investments. If the fundamentals and technical analysis don’t agree, he says, don’t invest.

Puggy Pearson on Risk

Though the late Puggy Pearson is known more for his poker skills than his investment ability, his perspective on risk is helpful to investors. His first rule was to find “bets” (i.e. investments) that offer 60/40 odds or better, and only bet on those. How you find them doesn’t matter, all that matters is that you find them and invest in them. Once you find the right investments, Puggy believed, your next step is to determine if the odds are great or just good. Bet a lot on the “great” opportunities and less on the “good” ones. It was his best advice for taking and simultaneously minimizing risk.

As you can see, each of these successful investors sets very different rules for choosing and managing their investments. But as we mentioned at the beginning of this article, the rules themselves are secondary, while sticking to the rules consistently seems to have yielded great results for all three men.

Though it isn’t specifically mentioned by any of the investors interviewed by Forbes, there is one other thing that these men have in common. While they do remain consistent in their investment strategies, one thing they don’t do is get emotional. Each of these men make investment decisions based on facts, not feelings. The current stock market, with its unpredictability and sharp gains and losses, can play havoc with your emotions. Keep emotion out of your decision-making as much as possible. If you buy or sell a stock based on panic, fear or even excitement, it could end up costing you a lot of money.

All three of the men highlighted here conduct some type of research, though some dig deeper into a company than others do. Researching a potential investment serves two purposes:

1. Gaining more information will help you determine if it’s really a good investment or not, and,
2. Prevent you from making rash, emotion-based decisions.

That’s not to say intuition shouldn’t play a role in your investment choices. But intuition and emotion aren’t the same thing. If you have a gut feeling about something, you should follow it. But start by doing some investigating.

Hearing about the investment practices of people like Warren Buffett and Dennis Gartman can give us all good ideas about how to approach our own investments. And while we may not come away with specific steps, we should all follow their over-arching example of picking one investment strategy and sticking with it. Remember: consistency is key.

quizzle.com