Index: Globe’s richest thrived

2012 wealth up by $241 billion

Sunday, January 6, 2013

— The richest people on the planet got even richer in 2012, adding $241 billion to their collective net worth, according to the Bloomberg Billionaires Index, a daily ranking of the world’s 100 wealthiest individuals.

The aggregate net worth of the world’s top moguls stood at $1.9 trillion at the market close on Dec. 31, according to the index. Retail and telecommunications fortunes surged about 20 percent on average during the year. Of the 100 people who appeared on the final ranking of 2012, only 16 registered a net loss for the 12-month period.

Amancio Ortega, the Spaniard who founded retailer Inditex SA, was the year’s biggest gainer. The 76-year-old tycoon’s fortune increased $22.2 billion to $57.5 billion, according to the index, as shares of Inditex, operator of the Zara clothing chain, rose 66.7 percent.

“It’s an amazing company that has done great, and the gains are quite justified given its performance,” said Christodoulos Chaviaras, an analyst at Barclays PLC in London who has had an “equal weight” rating on Inditex for about a year. “Can they repeat that? It will be harder. A lot of the positive news is already reflected in the share price.”

Global stocks soared in 2012. The MSCI World Index gained 13.2 percent during the year to close at 1,338.50 on Dec. 31. The Standard and Poor’s 500 Index rose 13.4percent to close at 1,426.19.

European stocks surged in the second half of the year. The Stoxx Europe 600 rose 19.6 percent since June 4, advancing as the European Central Bank introduced bond-buying programs, S&P upgraded Greece’s debt and German business confidence rose more than forecast. The benchmark gauge’s 14.4 percent advance for the year was the best annual return since 2009.

Carlos Slim, the telecommunications magnate who controls Mexico’s AmericaMovil SAB, maintained his title as the richest person on Earth for the entire year. The 72-year-old’s net worth rose $13.4 billion - or 21.6 percent - through Dec. 31, making him the second-biggest gainer by dollars.

Gains by Slim’s industrial conglomerate, Grupo Carso SAB, and Grupo Financiero Inbursa, his banking and insurance operation, more than offset the decline posted by America Movil, his biggest holding. The largest mobile phone operator in the Americas by subscribers fell 5.8 percent to close at $1.17 at the end of the year.

“America Movil is no longer the growth story that it has been, given the increase in Latin American wireless penetration over the last five years,” said Chris King, an analyst at Stifel Nicolaus & Co. in Baltimore. “It continues to generate a very high amount of cash flow and has the best set of telecom assets across Latin America.”

According to King, one of Slim’s biggest challenges will be dealing with regulation in Mexico and Colombia designed to punish or even-out the market share between America Movil and its competitors. Of the 14 analysts who cover the stock, 71 percent have a buy rating on the company, with an average target price of $1.50 per share, according to data compiled by Bloomberg.

U.S. software mogul Bill Gates, 57, ranks second on the list, trailing Slim by $12.5 billion. The Microsoft co-founder added $7 billion to his net worth as shares of the Redmond, Wash.-based company rose 2.9 percent. Microsoft stock accounts for less than 20 percent of the billionaire’s fortune.

Warren Buffett, 82, lost his title as the world’s third-richest man to Ortega on Aug. 6. The Berkshire Hathaway chairman gained $5.1 billion during the year, even after donating 22.3 million Berkshire Class B shares in July to charity. The billionaire, who has pledged to give away most of his fortune, spent much of the year pressing for higher taxes on the wealthy.

Brazil’s Eike Batista, 56, was the year’s biggest loser by dollars, falling $10.1 billion. The commodities maven, who vowed a year ago that he’d become the world’s wealthiest man by 2015, sold a 5.63 percent stake in his EBX Group Co. in March to Abu Dhabi’s Mubadala Development Co.

Batista’s former title as the richest Brazilian is now held by 73-year-old banker Jorge Paulo Lemann, who ranks 37th on the index with an $18.8 billion fortune. The country’s second-richest person is Dirce Camargo, the matriarch behind Camargo Correa SA, the Sao Paulo-based conglomerate that has interests in cement, electricity and Havaianas flip-flops. Her net worth is $13.4 billion, according to the Bloomberg ranking.

Asia’s richest man, Li KaShing, saw a rise of $6.4 billion. The 84-year-old chairman of Hong Kong property developer Cheung Kong Holdings Ltd. ranks 11th on the list with a net worth of $28.6 billion.

Zong Qinghou, head of China’s third-largest beverage maker, became the country’s richest man in September after disclosing that his stake in closely held Hangzhou Wahaha Group Co. was more than double previous estimates.

Camargo, who doesn’t appear on any other major international wealth ranking, is one of 54 billionaires that the index uncovered during the year.Among the others: Hamdi Ulukaya, the 40-year-old Turkish immigrant owner of Chobani, the best-selling yogurt brand in the U.S.; South Africa’s Nathan “Natie” Kirsh, 80, who amassed a $5.4 billion fortune in retail and real estate; and Elaine Marshall, 70, whose 14.6 percent ownership of closely held Koch Industries makes her the fourth-richest woman in America. She is worth $14.1 billion.

Koch Industries’ two other shareholders, the brothers Charles and David Koch, are each worth $40.9 billion, up 20.9 percent - $7.1 billion - for the year.

Other U.S. citizens on the list include Oracle Corp. founder Larry Ellison, who saw his worth rise by $6.4 billion in 2012 as shares of the world’s largest database company jumped 31.7 percent. Ellison, 68, who has more than tripled the amount of Oracle stock he has pledged against lines of credit in the past year, agreed to buy 98 percent of Hawaii’s Lanai island. The 141-square-mile parcel with no traffic lights was purchased from billionaire David Murdock, the 89-year-old chairman of Dole Food Co., the world’s largest producer of fresh fruit and vegetables.

Retail fortunes rose 19.5 percent on average, while nonretail fortunes increased 11.5 percent. Amazon.com Inc. chief executive Jeff Bezos, 48, added $6.9 billion to his net worth as shares of the world’s largest online retailer rose 45 percent.

The four heirs to the Wal-Mart Stores Inc. fortune - Jim Walton, Christy Walton, Alice Walton and Rob Walton - gained a combined $13.5 billion. Stefan Persson, the chairman of Swedish clothing retailer Hennes & Mauritz AB, added $2.7 billion.

Zong, the 67-year-old soda and juice tycoon, owns more than 80 percent of Wahaha, the company’s spokesman Shan Qining said. Zong’s net worth is $15.8 billion, according to the Bloomberg ranking. He is $8.4 billion wealthier than Robin Li, founder of Baidu Inc., China’s biggest search engine operator.

Facebook founder Mark Zuckerberg lost $5.2 billion during the year after the company’s shares fell 30 percent following its May initial public offering. Investors sued Facebook, the operator of the world’s largest social network, after its stock dropped in the wake of what was the largest technology initial public offering in history. The executive and his wife, Priscilla, signed a pledge two years ago committing the majority of their wealth to charity. He is worth $12.3 billion.

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.

Information for this article was contributed by Crayton Harrison, Alex Cuadros, Devon Pendleton, Brendan Coffey and Michael Wei of Bloomberg News.

Business, Pages 61 on 01/06/2013