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Schwarzman Still a Billionaire

ajorbahman.blogspot.com/2009/07/worlds-billionaires.html

It's been a tough year for the richest people in the world. Last year there

were 1,125 billionaires. This year there are just 793 people rich enough to

make our list.

The world has become a wealth wasteland. Like the rest of us, the richest

people in the world have endured a financial disaster over the past year.

Today there are 793 people on our list of the World's Billionaires, a 30%

decline from a year ago.

Of the 1,125 billionaires who made last year's ranking, 373 fell off the

list--355 from declining fortunes and 18 who died. There are 38 newcomers,

plus three moguls who returned to the list after regaining their 10-figure

fortunes. It is the first time since 2003 that the world has had a net loss

in the number of billionaires.

The world's richest are also a lot poorer. Their collective net worth is

$2.4 trillion, down $2 trillion from a year ago. Their average net worth

fell 23% to $3 billion. The last time the average was that low was in 2003.

Bill Gates lost $18 billion but regained his title as the world's richest

man. Warren Buffett, last year's No. 1, saw his fortune decline $25 billion

as shares of Berkshire Hathaway (nyse: BRK.A

- news

- people

) fell nearly 50% in 12

months, but he still managed to slip just one spot to No. 2. Mexican telecom

titan Carlos Slim Helú also lost $25 billion and dropped one spot to No. 3.

It was hard to avoid the carnage, whether you were in stocks, commodities,

real estate or technology. Even people running profitable businesses were

hammered by frozen credit markets, weak consumer spending or declining

currencies.

The biggest loser in the world this year, by dollars, was last year's

biggest gainer. India's Anil Ambani lost $32 billion--76% of his fortune--as

shares of his Reliance Communications, Reliance Power and Reliance Capital

all collapsed.

Ambani is one of 24 Indian billionaires, all but one of whom are poorer than

a year ago. Another 29 Indians lost their billionaire status entirely as

India's stock market tumbled 44% in the past year and the Indian rupee

depreciated 18% against the dollar. It is no longer the top spot in Asia for

billionaires, ceding that title to China, which has 28.

Twelve months ago Moscow overtook New York as the billionaire capital of the

world, with 74 tycoons to New York's 71. Today there are 27 in Moscow and 55

in New York.

After slipping in recent years, the U.S. is regaining its dominance as a

repository of wealth. Americans account for 44% of the money and 45% of the

list's slots, up seven and three percentage points from last year,

respectively. Still, it has 110 fewer billionaires than a year ago.

with ties to Wall Street were particularly hard hit. Former head of AIG

(nyse: AIG

- news

- people ) Maurice (Hank)

Greenberg saw his $1.9 billion fortune nearly wiped out after the insurance

behemoth had to be bailed out by the U.S. government. Today Greenberg is

worth less than $100 million. Former Citigroup (nyse: C

- news -

people ) Chairman Sandy Weill

also falls from the ranks.

Last year there were 39 American billionaire hedge fund managers; this year

there are 28. Twelve American private equity tycoons dropped out of the

billionaire ranks.

Blackstone Group's (nyse: BX

- news -

people ) Stephen Schwarzman,

who lost $4 billion, and Kohlberg Kravis & Roberts' Henry Kravis, who lost

$2.5 billion, retain their billionaire status despite their weaker fortunes.

Worldwide, 80 of the 355 drop-offs from last year's list had fortunes

derived from finance or investments.

While 656 billionaires lost money in the past year, 44 added to their

fortunes. Those who made money did so by catering to budget-conscious

consumers (discount retailer Uniqlo's Tadashi Yanai), predicting the crash

(investor John Paulson) or cashing out in the nick of time (Cirque du

Soleil's Guy Laliberte).

So is there anywhere one can still make a fortune these days? The 38

newcomers offer a few clues. Among the more notable new billionaires are

Mexican Joaquín Guzmán Loera, one of the biggest suppliers of cocaine to the

U.S.; Wang Chuanfu of China, whose BYD Co. began selling electric cars in

December, and American John Paul Dejoria, who got the world clean with his

Paul Mitchell shampoos and sloppy with his Patrón Tequila.

 

In Pictures: The 50 Richest People In The World

 

Full Coverage: The World's

Billionaires, 2009

 

Luisa Kroll, Matthew Miller and Tatiana Serafin/Forbes

 

Posted by AJORBAHMAN'S COLLECTION at

11:09 AM

 

Emily Rhodenbaugh

 

Sierra Club Conservation Organizer

 

250 Bell St.

 

Reno, NV 89503

 

emily.rhodenbaugh@sierraclub.org

 

775-323-4040

 

www.noblackstonecoal.com

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