# 2 Warren Buffett

Last years #1 settle for second place

American investor Warren Buffett was last year’s world # 1 richest man. This year he become the # 2 richest man of the world after losing $25 billion in 12 months as his one of the main source Berkshire Hathaway’s shares down by 45%.

American financier, chairman of Berkshire Hathaway Inc., Warren Buffett, born in 1930, in Omaha, Nebraska, and attended the University of Pennsylvania (1947-49). He later obtained Bachelor of Arts degrees from the University of Nebraska Lincoln (1950) and Master of Science from Columbia University (1951).

From 1951 to 1954, Buffett worked as an investment salesman for his father’s brokerage firm, a portfolio-management company in New York City. Then he moves to the Graham-Newman Corporation in 1954 and he was there up to 1956. When he was 25, he returned to Omaha and formed the Buffett Partnership, a limited-partnership investment fund that he managed with great success from 1956 until 1969, when he dissolved the fund just before the stock-market slump of the early 1970s. In 1969 he took over Berkshire Hathaway, a small textile company in Bedford, Massachusetts.

This was his first strong base, from where latter on he added holding company invested in insurance (Geico, General Re), jewelry (Borsheim’s), utilities (MidAmerican Energy), food companies (Dairy Queen, See’s Candies).banks, steel-service companies, department stores and news-media organizations. Also has non controlling stakes in Anheuser-Busch, Coca-Cola, and Wells Fargo. During the 1980s he became involved in merger arbitrage, helping to forge an agreement between the American Broadcasting Companies (ABC, Inc.)) and Capital Cities Communications in 1985 (effective 1986) that gave Berkshire Hathaway part ownership of Capital Cities/ABC, Inc. In 1987 he prevented corporate raiders from taking over Salomon Brothers, a Wall Street investment company, by buying 12 percent of the company. In 1989 he became the second largest stockholder in the Coca-Cola Company. He became interim chairman and chief executive of Salomon Brothers in 1991-92 during a shake-up resulting from illegal bond-market activities. He resigned from these offices and appointed successors when the federal government’s investigation of Salomon Brothers was completed.

In 2006 Buffett revealed his intention to donate $37 billion, a large proportion of his fortune, to charity—mostly to the Bill & Melinda Gates Foundation.

Source: Encyclopedia

A Special Report published on 03.11.09, 06:00 PM EDT and Edited by Luisa Kroll, Matthew Miller and Tatiana Serafin said that the richest people in the world have gotten poorer, just like the rest of us. This year the world’s billionaires have an average net worth of $3 billion, down by 23% in last 12 months. Report say’s that last year was a very tough year for the richest people.

There were 1,125 billionaires in the year 2008 but this year (2009) there are only 793 people rich enough to enroll in the billionaires list and a 29.51% decline from the last year’s total billionaires. 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.

From the last year’s list of 1,125 billionaires, 373 billionaires (Old) fell out of the current year’s list and a 33.16% decline from the last year. Out of 373 billionaires, 355 billionaires decline due to fortunes and 18 billionaires died. There are only 38 new billionaires plus 3 (old) tycoons who returned to the list after regaining their 10-figure fortunes. Since 2003, this is the first time the world has had a net loss in the number of billionaires.

The world richest people are also having gotten poorer. Their collective net worth is declining. This year their collective net worth is $2.4 trillion, decreasing by $2 trillion from the last year. Their average net worth is $3 billion a fell by 23% in comparison to the last year and which is equal to the average wealth of 2003.

World Number one richest man Bill Gates lost $18 billion but regained his previous title as the No.1 richest man. Warren Buffett, last year’s No. 1, lost $25 billion as shares of Berkshire Hathaway fell nearly 50% in 12 months and dropped one steep down to No.2, Mexican telecom titan Carlos Slim Helú also lost $25 billion and dropped one steep down to No. 3.

Last year’s biggest gainer India Anil Ambani is the biggest loser of dollars in this year. He lost $32 billions (Total 76% of his wealth) as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed.

Ambani and another 23 Indian billionaires, all are gotten poorer than a year ago. Due to India’s stock market tumbled by 44% in the last year and depreciation of Indian rupee by 18% against the dollar, another 29 Indians entirely lost their billionaire status. As a result India lost its top position in Asia for billionaires. Now the title goes to China, which has 28 billionaires.

Russian industrialist Dmitry Pumpyansky from the resource-rich Ural mountain region lost $5 billion as shares of his pipe producer, TMK, sank 84% And Vasily Anisimov lost $3.2 billion as the value of his Metalloinvest Holding and his real estate holdings fell. Last year Moscow with 74 tycoons overtook New York (with 71 tycoons) as the billionaire capital of the world. But at present (this year) there are 27 in Moscow and 55 in New York.

Last year there were 39 American billionaire hedge fund managers; this year there are 28. Eleven American private equity tycoons dropped out of the billionaire ranks.

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.