“That’s how quickly the fortune of the Waltons, the clan behind Walmart Inc, has been growing since last year’s Bloomberg ranking of the world’s richest families.
“At that rate, their wealth would’ve expanded about $23,000 ($A33,868) since you began reading this. A new Walmart associate in the US would’ve made about 6 cents in that time, on the way to an $11 ($A16) hourly minimum.”
It also revealed the family’s “jarring” and “near-unprecedented” wealth had soared by $39 billion since June 2018.
But who are the mysterious Walton family, and how did they amass such a “jarring” stack of cash?
By the age of 34, Akiko Naka has already experienced more career-wise than most people do in a lifetime.
She started by getting hired by Goldman Sachs, where she worked as an equity saleswoman. When she left that job, she tried to make it as a professional manga comic artist. When that didn’t work out, she landed a job at Facebook.
And not content to leave it at that, she quit to establish her own company, a recruiting social network called Wantedly Inc. She took it public on the Tokyo Stock Exchange last year, and is one of the youngest women to head a Japanese listed company.
Finding clean, affordable hotels in India can be a traveller’s hideous nightmare. Too often, what looks great on a website turns out to be a disapointing roach-infested room in a crumbling old building where water has to be schlepped to the bathroom in a bucket.
Ritesh Agarwal’s solution is a booking app that promises truth in advertising and branded hotels that don’t deliver unpleasant surprises. The chain he started in 2013, Oyo Hotels, has already become the largest in India, a chaotic market worth $US4.5 billion ($6.2 billion), according to New Delhi-based researcher Hotelivate.
Now Agarwal is going overseas with his franchise model, which combines a reservation site with a full stack of services for small hoteliers who want to up their game. Yesterday the company said it’s raising $US1 billion from SoftBank Vision Fund, Sequoia Capital and other investors to fund expansion in countries including China, where Oyo opened in November. Last week it started service in the UK, bringing the business to a developed market for the first time.
“By 2023, we will be the world’s largest hotel chain,” the 24-year-old founder said in a recent interview at an Oyo hotel in a suburb of New Delhi, where the company is based.
“We want to convert broken, unbranded assets around the globe into better-quality living spaces.”
Oyo employs hundreds of staffers in the field who evaluate properties on 200 factors, from the quality of mattresses and linens to water temperature. To get a listing, along with a bright red Oyo sign to hang street-side like a seal of good-housekeeping approval, most hoteliers must agree to a makeover that typically takes around 30 days or so. Oyo then gets 25 per cent of every booking. Rooms usually run between $US25 and $US85.
Why let university interfere with my education?
“Oyo is going all out to build a very large base of hotel partners and become a bona-fide brand,” said Mrigank Gutgutia, an analyst with RedSeer Management Consulting. “Their app model works well because price-conscious travellers who search by location like to feel they have lots of choices.”
Agarwal wouldn’t disclose sales nfigures, but he said the number of transactions has tripled in the last year, with 90 per cent coming from repeat travellers — and no money spent on advertising. There are now 10,000 hotels in 160 Indian cities, with in excess of 125,000 rooms, listed on the site, he said. That’s about 5 per cent of India’s total room inventory, according to RedSeer estimates.
“Over 150,000 heads rest on our pillows every night,” said Agarwal, a trim man who tugs at a sore ear as he talks. Constant airplane travel has given him an ear ache–one unwanted side effect of the company’s hyper growth.
Not everyone is happy with the Oyo experience. Payal Gupta, a recent guest, was disappointed by her stay at a place near Delhi Airport, which she said felt like a house that had been hurriedly converted into a hotel. The sheets were dirty and the bathroom was cramped. “It isn’t enough to have Oyo-branded shampoo and moisturiser,” she said.
Gutgutia, the RedSeer analyst, said the company will need a steady stream of capital and an army of people on the ground to maintain standards. “Sustaining a high-quality experience could be a real challenge,” he said.
Indian startups have been on a tear recently, with more than a dozen worth now more than $US1 billion, according to researcher CB Insights. Walmart last month paid $US16 billion for a majority stake in Flipkart, an online retailer founded in 2007.
The funding announced yesterday by Oyo values the business at $US5 billion , according to a person familiar with the deal who asked not to be identified. That makes the startup India’s second most-valuable, after One97 Communications, owner of Paytm, a digital payments company with financial backing from Warren Buffett’s Berkshire Hathaway.
A college dropout in a country where university pedigree is obsessed over, Agarwal has become an unlikely business legend, with frequent appearances on televised award shows and a cover story last year in Forbes of India.
Agarwal says he never stayed at a hotel until he was picked to represent his school at a trivia competition held in a town a few hours away from home when he was 12. He got the idea for Oyo a few years later, while traveling India on a shoestring budget and lodging at some truly horrible guest houses. It wasn’t enough to aggregate hotels on a website, you also had to repair them, he realised. To learn the hotel business from the ground up, he spent a year cleaning rooms at one of them.
In 2013, he got a $US100,000 fellowship from Peter Thiel, the PayPal co-founder who subsidises students who drop out to start their own companies. The big break came in 2015, when he got $US100 million in venture funding from investors including Silicon Valley’s Sequoia Capital and Japan’s SoftBank Group Corp.
In November, Agarwal brought the OYO business to China, starting with a single listing in the industrial city of Shenzen. Now, less than a year later, travellers in the world’s most populous country can choose from more than 1,000 Oyo-branded hotels and 87,000 rooms in over 170 Chinese cities.
For Agarwal, though, there’s still a small hitch. He says his mother keeps nagging him to take a break from the business and go back to college. “But why let university interfere with my education?” he said with a contented laugh.
(Reuters) – A Missouri jury on Thursday ordered Johnson & Johnson (JNJ.N) to pay a record $4.69 billion to 22 women who alleged the company’s talc-based products, including its baby powder, contain asbestos and caused them to develop ovarian cancer.
FILE PHOTO: A bottle of Johnson and Johnson Baby Powder is seen in a photo illustration taken in New York, February 24, 2016. REUTERS/Mike Segar/Illustration
The verdict is the largest J&J has faced to date over allegations that its talc-based products cause cancer.
The company is battling some 9,000 talc cases. J&J denies both that its talc products cause cancer and that they ever contained asbestos. It says decades of studies show its talc to be safe and has successfully overturned previous talc verdicts on technical legal grounds.
Thursday’s massive verdict, handed down in the Circuit Court of the City of St. Louis, was comprised of $550 million in compensatory damages and $4.14 billion in punitive damages, according to an online broadcast of the trial by Courtroom View Network.
J&J in a statement called the trial “fundamentally unfair” and said it would appeal the flawed decision.
J&J shares fell $1.31, or 1 percent, to $126.45 in after-hours trading following the punitive damages award. They had risen $1.52 during regular trading.
The jury’s decision followed more than five weeks of testimony by nearly a dozen experts from both sides.
The women and their families said decades-long use of Baby Powder and other cosmetic talc products caused their diseases. They allege the company knew its talc was contaminated with asbestos since at least the 1970s but failed to advise consumers about the risks.
“Johnson & Johnson is deeply disappointed in the verdict, which was the product of a fundamentally unfair process,” the company said in a statement. The company said it remained confident that its products do not contain asbestos or cause cancer.
“Every verdict against Johnson & Johnson in this court that has gone through the appeals process has been reversed and the multiple errors present in this trial were far worse than those in the previous trials which have been reversed,” J&J added, saying that it would pursue all available appellate remedies.
J&J has successfully overturned talc verdicts in the past, with appeals courts pointing to a 2017 decision by the U.S. Supreme Court that limits where personal injury lawsuits can be filed.
Of the 22 women in the St. Louis trial, 17 were from outside Missouri, a state usually regarded as friendly towards plaintiffs. The practice of combining plaintiffs in such jurisdictions, commonly criticized as “forum shopping” by defendants, will be challenged on appeal.
Mark Lanier, the lawyer for the women, in a statement following the verdict called on J&J to pull its talc products from the market “before causing further anguish, harm, and death from a terrible disease.”
“If J&J insists on continuing to sell talc, they should mark it with a serious warning,” Lanier said.
The majority of the lawsuits that J&J faces iare about claims that talc itself caused ovarian cancer, but a smaller number of cases allege that contaminated talc caused mesothelioma, a tissue cancer closely linked to asbestos exposure.
The cases that went to trial in St. Louis effectively combine those claims by alleging asbestos-contaminated talc had caused ovarian cancer.
Previous talc trials have produced verdicts as large as $417 million. But that 2017 verdict by a California jury, as well as other verdicts in Missouri, was overturned on appeal, and challenges to at least another five verdicts are yet to be determined through the courts.
The U.S. Food and Drug Administration commissioned a study of various talc samples from 2009 to 2010, including of J&J’s Baby Powder. No asbestos elements were found in any of the talc powder samples, the agency said.
But Lanier during the trial told jurors that the agency and other laboratories and J&J have used flawed testing methods that did not allow for the adequate detection of asbestos fibers.
Talc, the world’s softest rock, is a mineral closely connected to asbestos and the two substances can appear in close proximity in the earth.
Plaintiffs claim the two can become intermingled in the extraction process, making it almost impossible to remove the carcinogenic substance. J&J denies those allegations, saying rigorous testing and purification processes ensure its talc is clean.
Reporting by Tina Bellon in New York; editing by Leslie Adler and Rosalba O’Brien
Technology keeps making it easier to separate you from your money. PayPal enabled you to easily send money via the internet. Square allowed businesses to use a smartphone to accept your credit card. Apple Pay and Android Pay flipped this idea on its head and let you pay with your phone instead of a card.
Despite this innovation in how consumers can pay businesses, the way businesses pay each other hasn’t changed much. San Francisco startup Fundbox wants to give businesses another option.
The company already offers loans to small businesses, tapping into the businesses’ bank and accounting software to decide whether to lend. Its new service, Fundbox Pay, is essentially a combination of a credit card and a payment system like PayPal for small businesses.
The idea is simple, but it takes some explaining. Many small companies extend credit to other businesses. A wholesaler, for example, might ship flour to a bakery with the expectation of getting paid 30 or 60 days later. The wholesaler, likewise, buys from its own suppliers on credit. But what happens if a bill from a supplier comes due while the wholesaler is still waiting on payments from bakeries?
That’s not uncommon. The typical small business only has enough cash to pay 27 days of its usual bills, according to a study by JP Morgan Chase. As a result, many take out loans to cover these payments.
Fundbox is trying to solve this problem by playing the role of a typical credit-card provider. In our hypothetical example, the flour wholesaler would offer Fundbox Pay as a payment option. The baker would apply for credit from Fundbox. If it’s accepted, Fundbox would pay the wholesaler, minus a 2.9 percent fee. The wholesaler gets paid more quickly, and collecting from the baker becomes Fundbox’s problem.
Fundbox estimates that small and medium businesses-to-business payments are a $5 to $10 trillion market in the US.
Of course, small businesses can already take out loans and credit cards from banks from to pay suppliers—if they can get credit. There’s more demand than supply for small business credit right now, says Karen Mills, a senior fellow at Harvard Business School and former administrator of the US Small Business Administration, especially since the financial crisis of 2008. “During the great recession, a lot of banks pulled their lines of credit for small businesses as they tried reduce their exposure to risks” she says.
Alenka Grealish, an analyst at Celent, says banks are reluctant to lend amounts smaller than $100,000 because of the costs associated with underwriting loans. “The traditional system is human and paper based,” she says. “Businesses provide business plans and financial statements in PDF or on paper, and it all has to be entered into a system.” It ends up costing a bank hundreds of dollars just to decide whether or not to lend a business money, regardless of the size of the loan. So it makes sense for banks to focus on larger dollar amounts that generate more profit when they’re paid off.
Fundbox and other startups like Kabbage, on the other hand, simplify the process by extracting data directly from a business’s bank and accounting software and using machine learning algorithms to predict whether a business will pay up. Fundbox head of communications Tim Donovan says the company has a less than 1 percent loss rate on its existing loan products.
Fundbox COO Prashant Fuloria believes that Fundbox Pay could help its algorithms become more accurate, as the company is able to gain more insight into the relationships between different companies, creating a “small business graph” not unlike Facebook’s social graph.
Fundbox was among several online lenders that debuted earlier in this decade.
Electronic-payments company Square supports merchants selling online as well as offline.
Affirm aims to bring more transparency to business lending.
During the dot-com-crazed 1990s, Cisco Systems became the world’s most valuable company. By many it was expected to become the first company to hit a trillion-dollar market value, it made it barely halfway there. When the technology sector peaked in March 2000, Cisco had a capitalisation close to $US550 billion.
From those glory days, the entire technology sector imploded. Cisco fared even worse than the Nasdaq, losing 87 per cent from its zenith to its nadir. Today, some 18 years later, Cisco is worth about $US221 billion ($277.7 billion); its average annual compounded returns from those lofty heights is a negative minus 2.17 per cent per year, including reinvested dividends.
The world, it seems, would have to wait a while for its first true trillion-dollar market capitalisation company.
I was discussing this with a friend earlier this week. Apple is inching toward that trillion-dollar mark (its valuation hovers around $US900 billion). Prior to the recent 12 per cent market swoon, Apple had been trading at an all-time high of $US180.10 per share. As of this week, it eclipsed that, recovering all of that February drawdown.
The trend suggests that sometime this year, Apple will become America’s first trillion-dollar company. What will drive the move to a trillion dollars?
Consider these four factors as key to Apple’s continued upward momentum:
1. Share repurchases: Since 2012, when management first announced its intentions to do big share buybacks, Apple has shrunk its outstanding publicly traded shares considerably. As of 2013, there were 6.6 billion shares available to the public. Today, that count stands at a little over 5.07 billion shares – a 23.2 per cent reduction.
Apple’s board of directors had most recently authorised a $US210 billion share-repurchase program that is expected to be completed by March 2019, according to Apple investor relations. That was before the very corporate friendly 2017 tax reform bill was passed. One would expect that bill will encourage even more share repurchases. We should not be surprised to see a 10 or even 20 per cent share count reduction over the next five years.
What is the effect of reducing share count? It makes the earnings of each share greater proportionately. At the same price, higher earnings equal a lower price-to-earnings ratio, and the company appears cheaper. This could have the impact of enticing value buyers, including…
2. Warren Buffett: The famous value investor has been notoriously tech averse throughout his career. His recent announcement that he is out of IBM and into Apple in a big way surprised a few people.
SANTA MONICA, CA – SEPTEMBER 6: Amazon CEO Jeff Bezos unveils new Kindle reading devices at a press conference on September 6, 2012 in Santa Monica, California. Amazon unveiled the Kindle Paperwhite and the Kindle Fire HD in 7 and 8.9-inch sizes. (Photo by David McNew/Getty Images)
Buffett said Apple is now Berkshire Hathaway’s second biggest holding (after troubled serial fraudster Wells Fargo); Apple was the stock Buffett’s investment firm bought the most of in 2017. Although he claims he still has confidence in Wells Fargo, he cut his stake last year; don’t be surprised to see Berkshire’s Wells holdings get further reduced.
Buffett’s loyal devotees often follow his lead, and are likely to add Apple to their portfolio of value stocks.
3. Index buyers: The past decade has seen indexing go from a modest niche to one of the most popular styles of investing. The explosive gains in assets under management for Vanguard ($US5 trillion) and Blackrock ($US6 trillion) attest to the power of passive investing.
Apple is the biggest company in the Standard & Poor 500, the Nasdaq 100 and the Dow Jones Industrial average — three of the best-known, most-followed indices. As such it captures the flow into index holdings, whenever markets rise. Apple accounts for almost 4 per cent of the S&P 500 (its market cap is about $US23 trillion); 4.9 per cent of the price-weighted Dow; and over a whopping 11 per cent of the Nasdaq 100 ($US7.85 trillion).
4. New products: A slew of new and upgraded products are in the making. These usually direct the next cycle in Apple’s revenue, profits and ultimately price. New services, iPhones, AirPods, wireless chargers, over-the-ear headphones and home devices could be the spark that adds the next $US100 billion in market cap.
I know, there are skeptics. There has been lots of skepticism about Apple for literally decades. The Mac site Daring Fireball has kept a running list of “claim chowder” — all of the bad reviews of iPhones, iPads, Apple Watches, etc. that (incorrectly) forecasted disastrous sales. I see no reason this time is any different.
What factors could derail seeing a huge T in Apple’s market capitalisation? Two quickly to mind:
The market not falling in line: We tend to forget that the overall market and a company’s sector are responsible for about two-thirds of its gains. If tech falls out of favour, or if the overall market rolls over, it will put a trillion dollars out of reach for Apple.
Apple comes in second: The most likely challenger in the race to a trillion would be Jeff Bezos and Amazon.com. It has a market cap of $US732 billion dollars — and an infinitely higher valuation — so it has a tougher road to travel. But I would not put anything past Bezos & Co., and it would not be the first time they saw a 35 per cent gain in a year.
Cisco jinx be damned, I predict a better than 40 per cent chance that Apple’s trillion-dollar valuation will occur this year.2018.
The most valuable brand in the world is no longer Google, with Amazon taking top spot in a long-running global ranking of the top companies.
The global search giant fell to third place in 2018 on the Brand Finance Global 500 report, despite increasing its brand value by more than $US11 billion ($13.7 billion), leaving it tens of billions of dollars behind retail giant Amazon and tech company Apple.
Apple increased its brand value by almost $US40 billion over the year to $US146 billion and Amazon jumped about 40 per cent to a $US151 billion ($187.5 billion) value.
Amazon, which launched in Australia in December, has been given the permission of stakeholders to “extend relentlessly into new sectors and geographies”, Brand Finance chief executive David Haigh said.
This is the first year since the study began in 2007 that all top five companies have been in the technology sector. The ranking estimates the net economic benefit the company owner would achieve by licensing its brand.
Brand value ($US million)
Source: Brand Finance Global 500, 2018
Korean brand Samsung, one of only two non-American companies in the top 10, increased its ranking from sixth to fourth. Facebook rounded out the top five.
In Australia, the top brand name was telecommunications company Telstra, despite the company experiencing a significant drop in market value over the year.
This is the third year Telstra has been ranked first, now 120th globally, after a 13.6 per cent increase in brand value.With a brand worth $US12.4 billion ($15.4 billion) Telstra has a $US4 billion lead over Commonwealth Bank and ANZ in second and third spots.
Media and chief marketing officer for the 100-year-old telco brand Joe Pollard said the company was pleased with the result.
“Everything we do has a direct impact on the way our customers experience modern life”, she said.
She flagged customer service as an area at the top of its list for future improvements.
Telstra’s brand is worth more than four times that of its nearest competitor Optus, which maintained its ranking at ninth place with a $4.91 billion brand value up from $4.1 billion in 2017.
Australia’s top 10 brands included a mixture of telcos, banks, mining companies and the big two retailers – Coles and Woolworths.
Prior to 2015, Woolworths was in top spot.
Brand Finance Australia managing director Mark Crowe said the two “exceptional performers” were Qantas and Harvey Norman – both ranked top for brand strength, despite lower rankings for overall brand value.
Brand strength is a measure of how much the brand contributes to the overall revenue for the business.
The “strongest” Australian brand, based on marketing investment and stakeholder equity, was the Commonwealth Bank.
Amazon and Google have been contacted for comment.
In a global economy that roars continuously forward at lightning speed, fortunes can potentially be made and lost in the span of a day. The Bloomberg Billionaires Index is a daily ranking of the world’s 500 richest individuals. While many of the names in the top ten have become as iconic in their own right as the tech companies that propelled them to wealth and fame, there is always room for a few surprises. In addition to their business acumen and accomplishments, many of the men on the list are also active philanthropists. And if the thought of all that wealth feels intimidating and out of reach, consider the fact that the ten richest people on Bloomberg’s billionaire index are all self-made, many with humble and unremarkable beginnings.
Note that the specific rankings change frequently with stock price moves.
1…Jeff Bezos (Total net worth $99.6B)
Jeff Bezos has become synonymous with his company, Amazon, the online book retailer turned global e-commerce juggernaut he founded in Seattle in 1994. Mr. Bezos still runs Amazon, ranked the world’s fourth-largest information technology company by revenue. In addition to retail and tech, Amazon has also ventured into the streaming game, with a number of original shows in development.
When Amazon’s stock price surges up, Bezos edges out Bill Gates and moves into the pole position on Bloomberg’s Index. When Amazon’s stock eases up, Bezos tends to slip into the second position.
“There are two kinds of companies, those that work to try to charge more and those that work to charge less. We will be the second.”
– Jeff Bezos
Born: January 12, 1964 (age 53) in Albuquerque, New Mexico, USA
Spouse: MacKenzie Tuttle
2…Bill Gates (Total net worth $89.9B)
It might come as a surprise that Bill Gates, who has dominated “world’s richest” lists for well over a decade and usually tops the index at number one, is currently is second place. But note that he’s neck-and-neck with Jeff Bezos, so depending on the day and the stock market, he still toggles between #1 and #2.
As co-founder of Microsoft, Mr. Gates still holds a 2.4 percent stake in the company, along with a portfolio of diversified assets through a number of publicly traded companies across multiple business sectors, including Canada’s biggest railroad operator. Through the Bill and Melinda Gates Foundation and The Giving Pledge, Mr. Gates has pledged a large portion of his fortune to help solve some of the world’s most pressing public health problems.
“The PC has improved the world in just about every area you can think of. Amazing developments in communications, collaboration and efficiencies. New kinds of entertainment and social media. Access to information and the ability to give a voice people who would never have been heard of.”
– Bill Gates
Born: October 28, 1955 (age 62) in Seattle, Washington, USA
Spouse: Melinda Gates
3…Warren Buffett (Total net worth $83.1B)
Warren “the Oracle of Omaha” Buffett’s origin story is as American as the proverbial apple pie. Known as one of the most successful and prolific investors of all time, Mr. Buffett famously began his professional career as a paperboy and rode an enviable work ethic all the way to the top of the finance world, culminating with his holding company, Berkshire Hathaway. Fun fact: Berkshire Hathaway was originally a textile manufacturer, which eventually came to be the umbrella for 60+ companies under management.
“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”
– Warren Buffett
Born: August 30, 1930 (age 87), in Omaha, NE, USA
Spouse: Astrid Menks
4…Amancio Ortega (Total net worth $76.2B)
The tech sector may account for the largest slice of the pie, but the third richest billionaire in the world and number one in Europe is the head of retail giant Inditex Ventures, most famous for the Zara fast-fashion clothing chain. A quintessential “rags-to-riches” success story, Amancio Ortega rose from a humble working class background in Spain to run a multinational retail empire, where he continues to work to this day at the age of 80.
“In the street, I only want to be recognised by my family, my friends and people I work with.”
– Amancio Ortega
Born: 28 March 1936 (age 81) in Busdongo de Arbás, León, Spain
Spouse: Flora Pérez Marcote
5…Mark Zuckerberg (Total net worth $73.1B)
Like most of the famous tech entrepreneurs on the list, Mark Zuckerberg needs no introduction. Like Bill Gates, Mark Zuckerberg famously left Harvard early to work on the social network that would come to change the world and influence everything from politics and media to interpersonal communications. As co-founder and current Chairman and CEO of Facebook, Mr. Zuckerberg is the youngest member of the list.
“The Hacker Way is an approach to building that involves continuous improvement and iteration. Hackers believe that something can always be better, and that nothing is ever complete.”
– Mark Zuckerberg
Born: May 14, 1984 (age 33) in White Plains, New York, USA
Spouse: Priscilla Chan
6…Carlos Slim (Total net worth $62.1B)
Best known for his stake in Latin American telecom company America Movil, Carlos Slim also has holdings in a number of international companies across various sectors in Mexico, as well as recognizable American companies like The New York Times and Philip Morris.
“The better off you are, the more responsibility you have for helping others. Just as it’s important to run companies well, with a close eye to the bottom line, you have to use your entrepreneurial experience to make corporate philanthropy effective.”
– Carlos Slim
Born: January 28, 1940 (age 77) in Mexico City, Mexico
Spouse: Soumaya Domit
7…Bernard Arnault (Total net worth $61.6B)
The other European on the list also made his fortune in the retail sector. As chairman of LVMH Moet Hennessy Louis Vuitton, Bernard Arnault controls the world’s biggest luxury goods house, which in addition to the beloved Louis Vuitton brand also includes high profile brands like Tag Heuer and Dom Perignon champagne.
“If you deeply appreciate and love what creative people do and how they think, which is usually in unpredictable and irrational ways, then you can start to understand them. And finally, you can see inside their minds and DNA.”
– Bernard Arnault
Born: 5 March 1949 (age 68) in Roubaix, France
Spouse: Hélène Mercier
8…Larry Ellison (Total net worth $54.4B)
Larry Ellison made his name (and fortune) as the founder of legendary database company Oracle. While his roughly 25 percent stake in Oracle may account for a large portion of his wealth, Mr. Ellison also holds a diversified portfolio with investments across a number of industries, namely real estate and professional sports (including a sailing team and the tennis tournament at Indian Wells in California).
“There’s a wonderful saying that’s dead wrong. ‘Why did you climb the mountain?’ ‘I climbed the mountain because it was there.’ That’s utter nonsense…You climbed the mountain because you were there, and you were curious if you could do it. You wondered what it would be like.”
– Larry Ellison
Born: August 17, 1944 (age 73) in Manhattan, New York, U.S.
Spouse: NA (multiple divorces)
9…Larry Page (Total net worth $51.5B)
With his partner Sergey Brin (no. 10), Larry Page claimed his place in history and helped to change the world as the co-founder of Google. As CEO of Google’s holding company (Alphabet), Larry Page controls the world’s largest search engine operator.
“For a lot of companies, it’s useful for them to feel like they have an obvious competitor and to rally around that. I personally believe it’s better to shoot higher. You don’t want to be looking at your competitors. You want to be looking at what’s possible and how to make the world better”
– Larry Page
Born: March 26, 1973 (age 44) in East Lansing, Michigan, USA
Spouse: Lucinda Page
10…Ingvar Kamprad (Total net worth $50.6B)
Claim to Fame: He’s the founder of IKEA, a Swedish retail company specialising in furniture.
“Happiness is not reaching your goal. Happiness is being on the way.”
– Ingvar Kamprad
Born: March 30, 1926 (age 91) in Pjätteryd, Sweden
Spouse: Kerstin Wadling
11…Sergey Brin (Total net worth $50.2B)
As co-founder of Google, Sergey Brin is a member of the elite group of tech titans that got their start in a San Francisco area garage. President of Alphabet, Mr. Brin has also had a hand in Google’s innovative offshoot Google X, where the company’s many geniuses are hard at work on various “moon shots,” working to find solutions to some of the world’s most pressing problems. In addition to his role in inventions like Google Glass, Sergey Brin went a little off-brand in 2007 to executive produce the movie “Broken Arrow” with his co-founder Larry Page.
“Obviously, everyone wants to be successful, but I want to be looked back on as very innovative, very trusted and ethical and ultimately making a big difference in the world.”
– Sergey Brin
Nationality: American (Soviet until 1979)
Born: August 21, 1973 (age 44) in Moscow, Soviet Union
Spouse: Anne Wojcicki
12…David H. Koch (Total net worth $47.8B)
Claim to Fame: He and his brother Charles are major donors to political advocacy groups and campaigns, almost entirely Republican.
“I’m basically a libertarian, and I’m a conservative on economic matters, and I’m a social liberal.”
– David Koch
Born: May 3, 1940 (age 77) in Wichita, Kansas.
Spouse: Julia Flesher
13…Charles Koch (Total net worth $47.8B)
Claim to Fame: He and his brother David are major donors to political advocacy groups and campaigns, almost entirely Republican.
“The role of business in society is to help people improve their lives by providing products and services they value more highly than their alternatives, and to do so while consuming fewer resources.”
– Charles Koch
Born: November 1, 1935 (age 82) in Wichita, Kansas.
Spouse: Liz Koch
14…S. Rob Walton (Total net worth $46.2B)
Claim to Fame: Rob served as Chairman of Walmart from 1992 to 2015.
“I learned from my dad that change and experimentation are constants and important. You have to keep trying new things.”
– Rob Walton
Born: October 28, 1944 (age 73) in Tulsa, Oklahoma.
Spouse: Carolyn Funk (divorced)
15…Jack Ma (Total net worth $46.2B)
Claim to Fame: Jack is the founder and executive chairman of Alibaba Group.
“I don’t want to be liked. I want to be respected.”
– Jack Ma
Born: September 10, 1964 (age 53) in Hangzhou, Zhejiang, China.
Spouse: Cathy Zh?ng Y?ng
16…Jim Walton (Total net worth $45.6B)
Claim to Fame: Jim is the youngest son of Sam Walton, the founder of the world’s largest retailer, Walmart.
Born: June 7, 1948 (age 69) in Newport, Arkansas.
Spouse: Lynne McNabb
17…Alice Walton (Total net worth $44.9B)
Claim to Fame: Alice is the wealthiest woman in the world! She is the daughter of Wal-Mart founder Sam Walton.
“One of the great responsibilities that I have is to manage my assets wisely, so that they create value.”
– Alice Walton
Born: October 7, 1949 (age 68) in Newport, Arkansas
18…Francoise Bettencourt Meyers (Total net worth $44.3B)
Claim to Fame: Francoise is a board member of L’Oréal
Born: June 7, 1948 (age 69) in Newport, Arkansas.
Spouse: Jean-Pierre Meyers
19…Pony Ma (Total net worth $40.2B)
Claim to Fame: Pony Ma is the founder, chairman and CEO of Tencent.
“The leader of the market today may not necessarily be the leader tomorrow. ”
– Pony Ma
Born: October 29, 1971 (age 46) in Chaoyang District, Shantou, Guangdong, China.
20…Mukesh Ambani (Total net worth $39.8B)
Claim to Fame: Mukesh refines petrochemicals. He also owns the Indian Premier League franchise the Mumbai Indians.
“It is important to achieve our goals, but not at any cost.”
– Mukesh Ambani
Born: April 19, 1957 (age 60) in Aden, Colony of Aden
Spouse: Nita Ambani
21…Sheldon Adelson (Total net worth $35.5B)
Claim to Fame: Sheldon is the founder, chairman and chief executive officer of Las Vegas Sands Corporation.
“Achievement is the motivation of entrepreneurs.”
– Sheldon Adelson
Born: August 4, 1933 (age 84) in Boston, Massachusetts.
Spouse: Miriam Ochsorn
22…Hui Ka Yan (Total net worth $34.5B)
Claim to Fame: Hui Ka Yan is the Founder and Chairman of the Evergrande Real Estate Group
Born: 1958 in Taikang County, Zhoukou, Henan, China.
23…Steve Balmer (Total net worth $34.2B)
Claim to Fame: Steve was the CEO of Microsoft from 2000 to 2014, and is now the owner of the Los Angeles Clippers basketball team.
“I loved every minute of my time at Microsoft, but I had always envisioned having another phase of life just because I thought that would be interesting. It had never been my plan to work until I literally didn’t want to do anything and then hang it up.”
– Steve Balmer
Born: March 24, 1956 (age 61) in Detroit, Michigan.
Spouse: Connie Snyder
24…Li Ka-Shing (Total net worth $33.7B)
Claim to Fame: He’s now one of Asia’s most generous philanthropists.
Born: July 29, 1928 (age 89) in Chaozhou, Guangdong, China.
Spouse: Chong Yuet Ming
25…Jacqueline Mars (Total net worth $33.4B)
Claim to Fame: Heiress and granddaughter of the founder of the American candy company Mars, Incorporated.
China’s Meituan Dianping just became the world’s fourth-most valuable start-up, reaching a $US30 billion ($38 billion) valuation that puts it ahead of high-fliers like Airbnb and Space X.
Never heard of Meituan? You’re not alone. The Beijing-based company, led by Wang Xing, is almost unknown beyond its home country. It delivers food to people’s homes, sells groceries and movie tickets, provides reviews of restaurants, and markets discounts to consumers who buy in groups. It’s a sort of mashup of Groupon, Yelp, Foodpanda and Uber Eats.
Meituan’s appeal for investors is its dominant position in a market of more than a billion people. It was formed through the 2015 merger of Meituan.com and Dianping.com, creating the leading player for internet-based services ordered via smartphone apps. It raised $4 billion in the latest round from Tencent Holdings, Sequoia Capital and US travel giant Priceline Group.
“It’s a quasi-monopoly built on the stomachs of 1.4 billion people,” said Keith Pogson, global assurance leader for banking and capital markets in Hong Kong at consultant EY.
Flipping smart $4 billion funding round by Meituan
Wang started Meituan.com in 2010 as a group-buying site similar to Groupon, where people can get discounts by buying electronics or restaurant meals together. Dianping was founded in 2003 in Shanghai with reviews of restaurants and other local businesses, then diversified into group discounts. The companies were valued at $US15 billion when they merged two years ago.
The combined companies have far surpassed their US peers. Chicago-based Groupon, once a sensation in the US, has dropped to a market value of less than $US3 billion. Yelp, based in San Francisco, has tumbled from its peak in 2014 to $US3.6 billion.
Meituan Dianping has expanded well beyond its original businesses. With a few taps to navigate its smartphone apps, Chinese customers can order hot meals, groceries, massages, haircuts and manicures at home or in the office. One popular service offers the ability to have your car washed while you’re at work and it’s parked on the street – the service sends a photo to your phone to verify the job. Meituan says it now has 280 million annual active users and works with 5 million merchants.
The offerings, collectively known as online-to-offline or O2O services, may ultimately prove more successful in China than in the US. Labor costs are lower in China, cities are more densely populated and there are more people. The country’s O2O market surged 72 per cent to 762 billion yuan ($US115 billion) last year, according to estimates from consultant IResearch.
“China’s market is big enough for a company this size,” said Wang Ling, an analyst with IResearch. “After years of consolidation, Meituan is one of the few contenders in areas with gigantic revenue.”
Meituan is facing increasingly stiff competition from China’s technology giants and their proxies. In particular, Alibaba Group Holding has backed a rival service called Ele.me, which recently acquired Baidu’s business, Waimai. Alibaba, Tencent’s primary rival, is boosting its investment to bankroll expansions into more cities and businesses.
“Meituan faces so many competitors because of its wide range of business,” said Cao Lei, director of the China E-Commerce Research Centre in Hangzhou. “Lifestyle e-commerce, which includes online travel and dining reservations, is one of the fastest growing sectors in the country.”
Travel is becoming the latest competitive ground. With the recent fundraising, Meituan plans to spend hundreds of millions of dollars over the next three to five years to become a leading travel booking site. It’s also exploring opportunities to collaborate with Priceline as part of the investment. That may present a challenge to China’s biggest online travel site, Ctrip.com International, which is backed by Baidu. Ctrip shares fell 8.2 per cent in US trading.
It’s a quasi-monopoly built on the stomachs of 1.4 billion people.
China’s tech titans take their battle to a new frontier
In the latest funding, Meituan also received money from Canada Pension Plan Investment Board, Trustbridge Partners, Tiger Global Management, Coatue Management and the Singaporean sovereign wealth fund GIC. Meituan said it would use the cash to expand in artificial intelligence and drone-delivery technology.
Meituan is one of the new generation of Chinese technology companies that has rapidly gained popularity thanks to the rise of smartphones. Where Baidu, Alibaba and Tencent have come to be collectively known as BAT, new media upstart Jinri Toutiao, Meituan Dianping and ride-sharing king Didi Chuxing have now earned their own acronym: TMD.
The $30 billion financing ranks the company fourth in the world in start-up valuations, according to CB Insights. The first three are Uber Technologies, Didi and Chinese smartphone maker Xiaomi Corp.
EY’s Pogson however cautioned that valuations in China may be getting a bit overheated. Shares of private companies like Meituan and Uber aren’t traded in liquid markets every day, so valuations change only rarely and typically go up. In addition, many of the fundraisings in China and the US are done with ratchets, or protections so that investors get compensation if the valuations fall later on.
“You have to take these numbers with a grain of salt,” he says.