Becoming a part of the world class of billionaires is a cherished dream of a very large number of people. But not everyone is destined to move such colossal amounts and only a few will be able to reach the top. But almost everyone can put together a more or less decent capital. How to do it? Of course, there is no universal recipe, otherwise everyone would have become rich long ago. However, nothing prevents us from using biographies of real billionaires as a source of inspiration. Most of them made their money working transparently and publicly, so many moments of their lives can be very instructive and useful for novice investors.
Bernard Arnopresident of LVMH
Estimated net worth: $38.1 billion
Bernard Arnault is the richest man in France. After studying to be a civil engineer, he continued the business of his father, who had his own construction company. Having worked hard in his specialty and saved up money, Arno switched to buying luxury real estate, and after this direction began to bring him profit, he was one of the first to seriously invest in luxury goods. At the moment, this wealthy Parisian runs several companies engaged in the sale of luxury goods, and also works closely with brands such as Christian Dior, Hennessy and Louis Vuitton.
He is also a major art collector (the basis of the collection is the works of Pablo Picasso and Andy Warhol). Arno’s fortune today is estimated at about $34.8 billion, not counting valuable real estate around the world. His history shows that even by focusing on non-standard investment tools, you can successfully make a fortune.
Stephen Ballmer, former Microsoft Executive
Estimated net worth: $30.8 billion
Stephen Ballmer began his journey to wealth at Harvard University. In his sophomore year, he met Bill Gates and later refused to continue his studies at Stanford University Business School in order to start working with Gates. A small stake in the nascent company eventually brought fabulous profits and already in 2000 he was able to afford to buy the Los Angeles Clippers basketball team for a fabulous $2 billion (which, of course, was a rather controversial asset, since the previous owner Donald Sterling fiercely disputed this deal).
After leaving Microsoft, Ballmer remained a shareholder of the corporation. In addition, he invested $450 million in Twitter shares and bought another $14 million worth of expensive real estate. Another good confirmation is that by choosing an initially successful startup and not being afraid to invest in it, you can provide yourself for the rest of your life.
Suzanne Klatten Deputy Chairman of Altana
Estimated net worth: $20 billion
Susanna Klatten is the richest woman in Germany and a good example of how descendants can not waste, but multiply the wealth of their ancestors. Her grandfather founded an industrial conglomerate, which includes the well-known automaker BMW. However, this fact did not prevent him from having a solid share of the assets of his main competitor and rival — Daimler-Benz. After the death of her grandfather, Suzanne’s father Herbert Quandt (who is known for bringing BMW to the international level) became in charge of the affairs, from which the future top German businesswoman will inherit shares in BMW and the pharmaceutical giant Altana (she now owns the latter virtually alone, having 50.1% of the shares in her hands).
She is also the chairman of SGL Group, which produces graphite and carbon fiber products.
Azim Premjipresident of Wipro
Estimated net worth: $10 billion
Azim Preji was born into a family that owned a small business (selling vegetables and producing hydrogenated oils) in Western India. Shortly after Preji’s admission to Stanford, his father, who was the founder and manager of the company, died and the young man had to leave college to take over family affairs.
At the age of 21, he became Chief executive officer. Seeing that things were going so-so, he took a number of measures that gave the business a new impetus to development. First of all, he diversified his source of income by launching a small line of hygiene products (baby soap) in Mumbai. In 1981, he ventured to explore a new direction of IT for himself, which at that time was at the stage of formation in India. By that time, the company’s name had changed from Vegetable Products Limited, to Wipro Products Limited.
In 1988 Wipro diversified its production line again, producing heavy-duty hydraulic cylinders, as well as selling and servicing electronic diagnostic equipment. The main business is also flourishing – in 1990, the production of talcum powder for children “Santoor” and a whole series of Wipro Baby Soft hygiene products were launched.
Wipro has been developing and selling software since the 2000s and is currently one of the world’s largest outsourcing giants.
An excellent example of how, thanks to the competent diversification of funds and skillful reinvestment, a provincial small business has grown into a large international company.
Carlos Alberto Sicupira
Carlos Alberto Sicupira CEO of 3G Capital
Estimated net worth: $8.6 billion
Carlos Alberto Sicupira is originally from Sao Paulo, Brazil. He started his career as a financier at Banco de Investimentos Garantia. Later, he was the executive director of the Brazilian retail chain Lojas Americanas. Today, he is the founder of the private equity firm 3G Capital, which in recent years has become known for its partnership with Warren Buffett – the joint acquisition of Heinz in 2013 and its merger with Kraft two years later.
Most of Mr. Sikupira’s wealth is in the assets of 3G Capital (67% of the total amount of money). He also has a stake in Anheuser-Busch InBev, and a solid stake in Lojas Americanas worth $220 million. In addition, according to Carlos himself, he keeps $1.6 billion dollars in cash “under the mattress” and owns $2.5 million worth of real estate in Manhattan.
“Never become dependent on a single source of income. Invest to create a second source.” W. Buffett
The first name associated with the question “Where do billionaires invest” is Warren Buffett. His personal fortune exceeds $ 90 billion. The investor manages the Berkshire Hathaway conglomerate, from his reports to the SEC we can track which positions the fund holds:
Apple is the largest brand in the production of computers, tablets, smartphones, software, etc. The investor started buying their shares relatively recently, and this company quickly became a favorite in the portfolio. About 14.6% is allocated to Apple shares, the position size is $ 27.9 billion.
Important note: according to current data, the investor has already excluded IBM shares from the portfolio. He attributes this to the growth of competition in the field of technology. Previously, there was a position of $ 13.2 billion, and about 12.4% of the portfolio was in IBM shares. The dividend income is 2.4%. In addition, Wal-Mart is excluded from the portfolio.
Wells Fargo is a banking brand and a leader in mortgage lending in America. The share in Buffett’s portfolio is about 14.5%, which in terms of dollars is 23.8 billion, while the income from dividends is 2.8%.
Coca-Cola is a brand that produces soft drinks and syrups and needs no introduction. The billionaire has been investing in this organization for more than a dozen years, and currently has a position of $ 18.3 billion. Approximately 9.5% of Buffett’s entire portfolio is in Coca-Cola shares with a 3% dividend yield.
American Express is a popular payment system specializing in bank cards. A position of $ 15 billion and a share in the portfolio of 7.8%. The dividend yield is 1.1%.
Let’s briefly list the rest of Buffett’s positions:
Kraft Heinz — 13,2%;
Bank of America — 10,4%;
Phillips — 4,2%;
US Bankcorp Del — 2,4%;
Moody’s Corp — 1,9%;
Bank of New York Mellon Corp — 1,7%.
As a result, Warren’s assets can say a lot about what rich people invest in. They often prefer shares of large companies, while trying to choose as conservatively as possible. The portfolio includes the most reliable and large corporations, brands that have not yet exhausted their potential.