management

| the

wealth

collection Super rich or nouveau poor When £3 million is considered a paltry sum, just what does ? it take to make it onto the rich list? And what do those on the list do with their money? Will Hawkes investigates.



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| the wealth collection 10 five, Indian-born Mittal made his money in steel. His company,His steel. in money his made Mittal Indian-born five, 5 Worthbillion.$33 companycountriesstoreshishas1947;now37counting. and in 4 financiallyspeaking,since.ever Worth billion.$52 Berkshirefirm Hathaway1965;he’sin up,the on been 3 aroundworld.Worththe billion.$56 moneytacklingandtimehisserious disease retirementfromspendcompany;planstothe he 2 AmericahisMovilgroup. shareestimatedbilliona$67in thanks toat billion$19year.Madelast nowwealth isHis México(Telmex)de privatisationa in deal. boughtoperatorfixedlinehe Teléfonos 1 world’sThe Source:Forbes 1934.foundedWorthwasin billion.$22 familyhandssinceitinbeen which has Canadianmediagroup, ThomsonCorp, 10 Worthbillion. $23 estate. real and electricity phones, mobile shipping, includes that operation diverse a owns Shing 9 Worthbillion.$24 empireZaraencompasses now 3,000countries.stores64 in 8 LVMH,expandingnowwhichisAsia.rapidly Worth in billion.$26 7 Worth$26.5billion. VegasLas billion$3.5buildingnowsuper-casinoa is Singapore.in 6 Worthbillion. $32 steel. of production world of 10% Arcelor-Mittal,for accounts 1

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i Ka- i a D man g politician,controllingboughta he interesttextile in WarrenBuffet k eldon avid Helu made his first fortune in 1990 whenfirst1990fortunehismade Heluin Carlos recentlyannouncedimpendinghis part- GatesBill varKamprad s h Sh c mi io Th in M O A A omson g ittal delson rte rnaults

Asia’s richest resident, Hong Kong-based Li Ka- Li Kong-based Asia’sHong resident, richest g S a London’s only representative in the top the London’srepresentativein only lim Helulim The founder of Ikea first sold furniturefirstsoldIkeafounderTheofin Co-chairof Self-madeclothingentrepreneur, Ortega’s The founder of MicrosoftfounderTheof The casinomagnateTherevolutionisedwho Frenchchairmanluxury ofgoodsbusiness

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t le disappear ‘People Howhas this occurred? One explanation is that the example of the UK in Thegrowth of private fortunes over the past 15 years has been remarkable. deregulation and Privatisation theyused to. families,whoare now finding their ‘meremillions’ just aren’t stretching like pinch. newA class hasemerged ofonce-wealthy individuals, many from old welloff? It’s notjust thepoor andthe middle classes whoare feeling the wealthof aselect few caused such comment. Carnegieand John DRockefeller at the end of the 19th century has the timein 2007. Not since the days of so-called robber-barons, such as Andrew (in US dollars), and rising: 178 people entered the list for the first worldbillionaires. Accordingto Forbes magazine, there are now at least 946 fortune.billion $26 cool a him made driver,has empirecab casino showand trade whose Europe’sof one feared;club most Sheldon Boston or a Adelson, of son the B personalwealth of £200 million or more is rising. theworld. From Germany to India and China, the group of people with Francisco/Silicon Valley Los Angeles.’ and San billionaires. over– 90 areas twohas in They’reCalifornia concentrated states,city. of a of terms In terms in biggest that’s the – billionaires 50 September].New [in out come weoverYorkwell time has the City by the on working I’m and count last our at 415 – now them of 400 than more US,’ the in here says.billionaires he of swelling are tremendous ‘There a counting. and - now ‘We US seeing the are in billionaires 415 are there the of Editor and,most notably of all, Russia. processhas taken place in China, India, South-East Asia, Africa,Latin privatised America and money allowed freer rein to roam beyond national borders. This the1980s has been copied around the world: state-owned utilities have been going up going ist because List the from bottom line keeps line bottom Butwhat hasthe effect ofthese stratospheric fortunes been onthose less Thesemen are at the forefront of amassive growth in the number of Alook at the figures suggests what Miller says about the US is true around US,Miller, boom. The massiveMatt a too, to seen According has Forbes Chelsea has made him a regular in most UK newspapers and his and newspapers UK most in regular a him made has Chelsea Roman club Abramovich,football English of ownership whose illionaires,seems,it news. big are Take,example,for Russian,the Forbes 400 Forbes right now and I’m sure there will be more than 415 415 than more be will there sure I’m and now right (which documents America’s richest citizens), richest documents America’s (which . ’ Rich william cash william the

14/9/07 16:16:49 wealth management | the wealth collection 18/9/07 16:47:57 11

, , the ew York has gone ew York N Spears Wealth Management Survey Management Wealth Spears The Sunday Times Rich List The Times Sunday orth America. There’s good transport links, links, good transport There’s orth America. N ), rich men and women from around the have globe ), rich around men and from women capital of capital the super-rich Forbes anonymity and light regulation of London have made it a magnet for the global super-rich. The security, The security, avid Harvey of Step (the Society of Trust and Estate Practitioners), a and Practitioners), Estate of avid Harvey of Step (the Society Trust a very relaxed, non-regulatory place to do business. Most importantly, to place Most importantly, do business. non-regulatory a very relaxed, and has has had outlook, London a the since big bang very international in the 1980s.’ according to according a are of number reasons, Why? There years. to in flocked London recent of editor Beresford, Philip argues residents. richest the UK’s cataloguing publication annual the security is the he there culture, ‘Then notes. ‘It is centre,’ a financial also the ease of time access There’s they find and here. the anonymity to Asia and zone-wise the tax breaks.’ and obviously, for children, their good schooling D advisers, of and tax financial lawyers association global London-based that has acumen seen financial perceived that it is emphasises London’s in money the it so past few attract much foreign years. come to is [people of London] the quality advice ‘The reason first he here,’ markets of the financial strength and the long-term available is strong there services, financial of strong have a record ‘We says. – transparent broadly are Things structure. with a advice good regulatory is – perfect and of we nowhere course can see how I have got down in the of of last couple because over-regulation. years is also a tax arrangement factor.’ major no that doubt the non-domiciled is down to new as of status capital the super-rich relatively London’s argues of reasons, a combination to as itself has lose its allowed dominance ‘America Cash. William editor of is he in capital the placed ‘London world,’ much says. better financial This is so have nearly of terms we much regulation. the don’t markets; London: boom in the economic a comparable last which underwent London, they come from. wherever is 1980s, now a for magnet the super-rich, some $32 (worth billion, Mittal Led Lakshmi by steel Indian , , where a moderate moderate a where pear’s Wealth Management Survey Management Wealth pear’s n because the bottom line keeps going going keeps line bottom the because Rich List Rich The Sunday Times Rich List, Rich Times Sunday The So times are looking good for those in the art-dealing and yacht-fitting yacht-fitting and art-dealing the in those for good looking are times So ‘The boom will continue,’ he asserts. ‘I still think that as the world’s world’s the as that think still ‘I asserts. he continue,’ will boom ‘The ‘There are a lot more people with titles living in less desirable areas of the the of areas desirable less in living titles with people more lot a are ‘There William Cash believes the rise of the super-rich has had a very significant significant very a had has super-rich the of rise the believes Cash William This has been reflected in in reflected been has This the from disappear ‘People ‘Our readers like to enjoy life but they always want to have a kind of of kind a have to want always they but life enjoy to like readers ‘Our as long as oil prices stay high, as long as there is real estate (in London and and London (in estate real is there as long as high, stay prices that oil as then long as land, own you If finite). is estate real of amount the York, New in resources, natural these have you as long As appreciate. to going is investment billionaires.’ more see will you elusive more ever seems property London central that Meanwhile, businesses. us. among mere those for A good outlook super-rich? the for hold future the does what but now, situation the is This billionaires. more and more see to likely are we believes Miller Matt see to going are you out and US the inside both grow to continues economy grow, to continues market the as long as billionaires, in increase continuing a were brought up to expect to be fairly comfortably off with a private income income private a with off comfortably fairly be to expect to up brought were is that think I and things of fringes the on much very themselves find now but development. interesting an has money foreign because all there, see to expect wouldn’t you who city, economy.’ local the upset and come up, so they don’t make it. Some are family companies that have fallen on hard hard on fallen have that companies family are Some it. make don’t they so up, of lot a anymore; cut the make don’t just who aristocrats old are others times; is It trend. a really isn’t There 2001. after disappeared entrepreneurs internet out.’ people pushing keeps line bottom the because mainly who people are ‘These says. he poor,’ of breed new a ‘There’s London. in effect inherited fortune no longer cuts the mustard. Philip Beresford puts it thus: thus: it puts Beresford Philip mustard. the cuts longer no fortune inherited first the In Definitely. be? to used they than richer list] the on people [the ‘Are it 2007, In 92. number at position a meant fortune million £70 a 1989 in list times eleven is That position. 92nd the achieve to fortune million £770 a takes inflation. outstrips comfortably that think I and level previous the New rich, new poor The society. of parts all on impact an had has super-rich the in growth This rich as regarded once those that means fortunes unimaginable once of creation is a be to – days these rich not is million ‘£3 out, points Cash (as it. puts Cash as life, London of fringes’ the ‘on themselves found have nothing’) investment angle,’ he points out. ‘They will collect art, but they will collect art collect will they but art, collect will ‘They out. points he angle,’ investment than more for can they line the down it sell to want they if so bankable, is that life enjoy to how is towards them guide and try we What for. it bought they aren’t people These money. one’s spends one how on return a get to also but whim.’ a on money spending just not They’re stupid. Investment targets to According on? money their spend to like super-rich these do what So S journal quarterly the of editor Cash, William enjoy to ways for look they million, £3 around worth is reader average whose time. same the at investment good a get and themselves TWC007_032_rich.indd 11