Bernard Arnault is the second richest person in the world, according to estimates by Forbes. As of Friday, wealth tycoon’s luxury market, which owns such brands as Louis Vuitton and Moet & Chandon, has reached to $104.1 billion compared with $76 billion in March when Forbes released its annual rating of billionaires. At that time he was the fourth richest man on the planet. His condition for the first time reached $100 billion in June. It grew thanks to the soaring stock prices of the conglomerate LVMH (since the beginning of the year, they rose by 50%).
Now as Arno almost a billion more than bill gates. This is the first time since 2008, when the founder of Microsoft does not take first or second place in the list of the richest people in the world. Microsoft shares showed a record performance, but not such as LVMH. In addition, a large part of the state of the gates now is not tied to fluctuations in the shares of the it giant.
On the top of the global list of billionaires remains Jeff Bezos (he has $124 billion, less the money that will soon move his ex-wife Mackenzie Bezos in the divorce process).
It seems unlikely that Arnault will ever catch up with Bezos. However, most of the assets of the two businessmen are the shares of their companies, and the rise LVMH and subsidence of the Amazon could quickly close the gap. In the end, as Arnaud has already increased by $27 billion over the past four months.
The success of Arnault due to the fact that wealthy customers around the world continue to purchase luxury items. LVMH reported record revenues and profits ($52.5 billion and $11.2 billion in 2018). In the first quarter revenue increased by 16%, to $14 billion the size of the profit, which is published twice a year, will be known in late July.
But Arno does not stop there. He continues to innovate and change LVMH, 35 years later, after he came to the luxury market, buying Christian Dior. This week he announced the beginning of cooperation with fashion designer Stella McCartney. This decision was made approximately 16 months after McCartney left the Kering competitor LVMH (under the baton of françois-Henri Pinault, son of French billionaire françois Pinault), and became a full owner of the company. In a press release, LVMH, McCartney said that since then she received many offers of cooperation, but to convince not only Arnault and his son Antoine.
The partnership aims not only to develop the fashion house Stella McCartney, but also to strengthen environmental initiatives LVMH. McCartney, whose brand is well-known devotion to the principles of sustainable and ethical high-end fashion, will become special adviser to LVMH on issues of concern for the environment.
“I am excited at the opportunity to work with Stella. This is the beginning of a beautiful partnership, and we believe in great long-term potential of the fashion house — said Arno. A key role was played by the fact that she first spoke about environmental issues and ethics. This underlines the commitment of LVMH to care about the environment”.
This deal followed a loud news of the two joint projects of LVMH with the famous singer Rihanna (Fenty Beauty and fashion House Fenty). In addition, recently the group has acquired hotel operator Belmond.
Translation Natalia Balabanchevo
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1. Jeff Bezos
Net worth: $131 billion
The change for the year: $19 billion
The source States: Amazon.com
Age: 55 years
Amazon founder Jeff Bezos is the world’s only billionaire with a twelve-character condition. In the fall of 2017 for the first time it exceeded $100 billion, and in 2018 several times exceeded $150 billion thanks to the growth of the company’s shares of Amazon, created Bezoom in a garage in Seattle in 1994 to sell books online.
Bezos continues to develop its aerospace company, Blue Origin, promising that its rockets reusable will carry passengers. In September 2018 Bezos announced the creation of the Fund One Day Bezos $2 billion to help the homeless in the United States and for the creation of preschool institutions in the Montessori style.
In 2013, Bezos paid $250 million, the newspaper The Washington Post, which actively criticizes U.S. President Donald trump. The head of the White house for its part accuses Amazon of tax evasion and destruction of traditional retailers.
In January 2019, the divorced Bezos with his wife Mackenzie, with whom he lived in marriage for 25 years. After that, Amazon founder was accused of blackmailing the American tabloid National Enquirer in favour of Trump, that he threatened him with disclosure of intimate photos of him and TV presenter Lauren Sanchez, which businessman romantically involved.
2. Bill Gates
Condition: $96,5 billion
Change over the year: +$6.5 billion
Source status: Microsoft
Age: 63 years
The founder of Microsoft for the year increased his fortune by $6.5 billion, but nevertheless has again lost first place in the ranking of Forbes Jeff Bezos.
In 1975, gates together with Paul Allen created Microsoft Corporation that became the world’s largest software maker. To date, gates has sold a majority stake of the company and continues to own only 1%. The money received from the sale of Microsoft stock, allow it to be the biggest philanthropist in the world.
In 2016 gates along with a team of 20 investors, including Amazon founder Jeff Bezosa, created investment Fund Breakthrough Energy in the amount of $1 billion earlier, with wife Melinda, he founded the charitable Foundation of bill and Melinda gates Foundation, whose main objective is the improvement of the health system and overcoming hunger in poor countries. In 2018, the Fund has created the Boston Institute for medical research from the bill and Melinda gates Foundation (MRI) with a budget of $100 million Its aim is to develop new drugs and vaccines against malaria, tuberculosis and diarrhoea, which together take 2.6 million lives annually worldwide.
3. Warren Buffett
Condition: $82.5 billion
Change over the year: -$1.5 billion
The source of wealth: Berkshire Hathaway
Age: 88 years
“Oracle of Omaha” retained in 2018 in third place in the list of the richest people in the world, despite the fact that his fortune fell by $1.5 billion Over the last three months of 2018 Berkshire’s investment portfolio declined by $27 billion because of a sharp fall in American securities market in October, quotes to the same and then the whole month of December was even lower.
Holding Berkshire Hathaway owns stakes in more than 60 companies, including Apple, Coca Cola, Geico, American Express, Fruit of the Loom and others. In the second half of 2018 Buffett took advantage of the falling stock of U.S. banks and became the largest shareholder of four of the five largest U.S. banks, including JPMorgan Chase & Co, Bank of America, PNC Financial Services and U.S. Bancorp. At the same time it reduced its investments in Apple.
In March 2018 Buffett called his likely successors at the head of Berkshire. He acknowledged that Berkshire Hathaway CEO Greg Abel and the head of the insurance division of the Ajit Jane can be worthy of the place. “Now, Berkshire is managed so much better than being followed I’m alone. Ajit and Greg have a rare talent, and in which flows the blood Berkshire. Changes needed for a long time”, — he wrote in his letter to shareholders.
Buffett has already invested $35 billion in funding from the bill and Melinda gates Foundation. And promises to give to charity 99% of his fortune.
4. Bernard Arnault
Net worth: $76 billion
Change over the year: +$4 billion
Source status: LVHM
Age: 70 years
The holding company LVMH includes 70 world famous luxury brands, including Moët Hennessy and Louis Vuitton, Sephora and Tag Heuer. Chairman of the Board and CEO of LVMH Bernard Arnault owns more than 5% stake in LVMH.
In the mid-1980s, Arnault along with a partner bought a distressed textile company Voies, the main asset of which was fashion house Christian Dior. In the mid-1990s, Arnault saw in the young fashion designer John Galliano’s rising star and with his help transformed Christian Dior. In 2017 Arnault brought to 100% its stake in Christian Dior, buying out the 25.9% stake in the fashion house for €12 billion, This transaction and the accompanying growth of quotations of LVMH has allowed Arnault to get rich on $30.5 billion In 2018 as Arnault, increased by $4 billion
Arnaud is a patron of the arts, he has invested $135 million to the Museum Louis Vuitton Foundation, which opened in the fall of 2014 in Paris.
5. Carlos Slim
Net worth: $64 billion
Change over the year: -$3.1 billion
The source of wealth: Telecom
Age: 79 years
Carlos slim for that year, remains the richest man in Mexico due to the fact that, together with his family controls the company America Movil is the largest Telecom operator in Latin America. In 1990, he together with foreign partners has acquired a package in the only telephone company in Mexico — Telmex, which later became part of America Movil. He also owns shares in construction and real estate companies, in the mining sector and in consumer goods. It also owns 17% of The New York Times.
The increase in the shares of America Movil in 2017, 39% led to the increase in the state of slim at $12.6 billion But in 2018 America Movil lost 15% of its value in connection with the plans of the government of Mexico to make the telecommunications market in the country more competitive. The state of Sliema decreased by $3.1 billion, nevertheless it has risen in the global ranking of billionaires from the seventh to the fifth place.
Slim’s son-in-law Fernando Romero was the Creator of the Museum “Soumya” in Mexico city, which houses a collection of works of art belonging to the billionaire. Among them the paintings of French impressionist Camille Pissarro, Claude Monet, Edgar Degas and Pierre-Auguste Renoir, as well as one of the world’s largest collections of Rodin sculptures.
6. Amancio Ortega
Condition: $62.7 billion
Change over the year: -$7.3 billion
The source of wealth: Zara
Age: 82 years
In 1975, Amancio Ortega and his wife Rosalia created the company Inditex, which was engaged in the tailoring of lingerie and bathrobes. Today Inditex owns eight brands, including Zara, Massimo Dutti and Pull & Bear, and 7,500 stores worldwide. 60% of the company belongs to the Ortega, which annually receives her dividends in the amount of $400 million Traditionally Ortega is investing these funds in real estate in new York, Madrid, Barcelona, London, Chicago, Miami.
In 2017, the value of the shares of Zara fell, and as Ortega was reduced by $1.3 billion In 2018, the company’s growth has slowed, and in September of Inditex stock has fallen to the worst in the last three years figure. The result of Ortega poorer by $7.3 billion
7. Larry Ellison
Condition: $62.5 billion
Change over the year: +$4 billion
The source of wealth: Oracle
Age: 74 years
Larry Ellison has created a company to develop software Oracle, in 1977. In 2014, he resigned as CEO, retaining the position of Chairman of the Board of Directors and Director of technology development. In 2015, he announced that the company will focus on the development of cloud technology, and in 2016 for these purposes, acquired for $9.3 billion of the company Netsuite.
In March 2018, Ellison launched a startup Sensei for the development of hydroponic agriculture on the Hawaiian island of Lanai. This island fell in love with the Allison in his youth. And in 2012 he purchased it (purchase cost the billionaire $300-500 million). It Ellison trying to create the ideal model of the future.
8. Mark Zuckerberg
Condition: $62.3 billion
Change over the year: -$8.7 billion
The source of wealth: Facebook
Age: 34 years
2018 was a challenging year for Mark Zuckerberg — the social network has come under fire for failing to confront the influx of fake news and hate. In April 2018 Zuckerberg testified at the hearings in the U.S. Congress charged with the data breach of 50 million users through the app, developed by the consulting company Cambridge Analytica.
In July, Facebook did not meet investors ‘ expectations on revenue growth. And in November, The New York Times published an investigation about how Zuckerberg and top managers of social networks pay for negative publications in media about George Soros, who criticized the social network. As a result, the state of Zuckerberg for the year decreased by $8.7 billion, and he dropped from fifth to eighth place in Forbes rating.
Zuckerberg founded Facebook in 2004 at the age of 19 years. In 2012 the company went public. Zuckerberg owns about 17% of its shares. In December 2015, Zuckerberg and his wife Priscilla Chan pledged for life to sell 99% of their shares of the social network and give the money to charity.
9. Michael Bloomberg
Net worth: $55.5 billion
Change over the year: +$5.5 billion
The source of wealth: Bloomberg LP
Age: 77 years
Michael Bloomberg created a media company Bloomberg LP, which provides financial information to corporate subscribers, in 1981. Prior to that, he worked for 15 years at the investment Bank Salomon Brothers, which was dismissed with a severance of $10 million Bloomberg spent $4 million of that money to start Innovative Market Systems that analyze financial markets. He soon renamed the company Bloomberg LP, its first client and the investor was the investment Bank Merrill Lynch.
Today, the business brings each year to $9 billion, Bloomberg owns 88% stake.
From 2002 to 2014 Bloomberg was mayor of new York, after which he again headed the company. At the present time intend to run for President of the United States.
Bloomberg is actively engaged in charity. It allocated $5 billion for measures for the control of personal weapons and other purposes. In November 2018, the billionaire announced that he will donate to his Alma mater-Johns Hopkins University in Baltimore — the $1.8 billion to support students with medium and low incomes.
10. Larry Page
Condition: $50.8 billion
Change over the year: +$2 billion
The source of wealth: Google
Age: 45 years
Paige founded Google in 1998 with Stanford University student Sergey Brin. They were engaged in the development of the system in the garage of Susan Wolitski, who is now head Youtube. Their first server was built from pieces of Lego. Over time, Google became leading search engine on the planet. The company, which was renamed the Alphabet in 2015 as part of a corporate restructuring, now brings more than $100 billion per year, it employs more than 60,000 employees in 50 countries.
Prior to 2001, Paige was the CEO of the company, and then decided to fire Google the part of project managers to between him and the programmers did not remain “extra layer”. As a result, investors Google has made its removal from the post of CEO. In 2011, Paige once again took the post of the General Director of Google. But in 2015, decided to lead the company Alphabet (parent for the Google, created to separate the business search engines from other activities). “We need to do breakthrough things, not small things,” — says Paige.
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