3 Biggest Billionaire Losers of 2008
Heading into New Years Eve the S&P 500 index is setting up to have its worst year ever in history. And while we know that every average investor has been affected, what about the billionaires of the world?
Try billions in losses.
Forbes reports that over 25% of the billionaires accounted for on their annual list have lost over $1 Billion in net worth since the list was last updated. America’s 25 biggest billionaire losers of 2008 lost a combined $167 billion, ouch.
The three worst stories we found from the report include:
1. Anil Ambani
March net worth: $42 billion
Current net worth: $12 billion
The biggest billionaire gainer last March is now the year’s biggest loser. Ambani lost $30 billion in the past nine months, more than anyone in the world. Stock of his telecom company dropped after his estranged brother helped scuttle a deal with African telecom MTN. It’s quite an achievement in a year in which three of his fellow countrymen–estranged brother Mukesh, steel tycoon Lakshmi Mittal and Indian KP Singh, all of whom ranked earlier among the world’s 10 richest–lost more than $20 billion apiece.
2. Oleg Deripaska
March net worth: $28 billion
Current net worth: less than $10 billion
Former metals trader survived Russia’s gangster wars but may not withstand collapsing markets and heavy debts of at least $14 billion. Russia’s one-time richest man recently received a $4.5 billion loan from a state-controlled bank in order to keep his 25% stake in Norilsk Nickel, which faced a margin call by Western banks from which he had borrowed. Other margin calls forced him to divest a $1.5 billion stake in Canadian carmaker Magna International and a $500 million stake in German construction company Hotchief. He’s also selling stake in insurance company Inogsstrakh.
3. Luis Portillo
March net worth: $1.2 billion
Current net worth: $15 million
Spain’s short-lived real estate gold rush left one of its most visible speculators holding a nearly empty bag. Portillo–who acquired real estate firm Inmocaral three years ago, then led the takeover of the larger Inmobiliaria Colonial in 2006–personally borrowed a reported $1.4 billion from more than a dozen banks during boom times, using his stock as collateral. He resigned as chairman in December 2007 and then tried to sell his stake to a Dubai fund earlier this year. When the deal fell through, he had to sell most of shares to pay debts.
For the full list walk-through go here.
This list serves as a good reminder that every investor has been affected by the worst year in the history of the stock market. Whether it is $100 or $1000 or $1 million, $100 million, or even $1 billion, the only difference is the number of zeros.
As 2008 finally unwinds I hope all investors can keep their heads up high and not look back, but forward. The future is in our control and alongside new leadership many more opportunities for growth will present themselves.
The Madoff Scandal and numerous bankruptcies will encourage drastic change in the years to come. Hopefully the days of writing posts like this are behind us.
Source:
Billionaire Blowups of 2008
Luisa Kroll
Forbes.com & Yahoo Finance
December 23rd, 2008
