Who is the world’s new richest man?
July 11th 2007 by DXL in PeopleBill Gates’ top position in the Forbes 500 is no longer valid. A Mexican monopolist has overtaken his position by $8 billion.
Carlos Slim Helú, of Lebanese descent, started buying businesses with his childhood savings and investment returns when he was 26. He then started Grupo Carso, a real estate and construction company.
The successful company was able to acquire a business printing labels for the tobacco industry. Oddly enough, this company took a majority share in one of its customers, Cigatam, a few years later.
Under bad economic circumstances, Slim bought lots of businesses at bargain prices, adding them to Grupo Carso. That holding company is now worth over $19 billion.
His biggest purchase was also his most controversial. He bought 51% of the telecom company Telmex in an auction when it was privatized. Carlos Slim Helú was accused of having insider information, possibly from the befriended president himself.
Because Telmex was granted a 7 year monopoly, Slim charged his Mexican customers the highest rate in the world. After the guaranteed monopoly, the company, now named América Móvil, still has a 90% market share, but with much lower rates.
Carlos Slim Helú, worth $67.8 billion, is rather disliked in his home country. Forty percent of Mexicans live below the poverty threshold, and they don’t believe that Slim could have earned his fortune fairly in the developing country.
Yet, Slim Helu attempts to earn a better reputation in Mexico. He has promised to match donations to various charities 1:1 and, according to Forbes, he has given 150,750 college scholarships, 10 million pairs of contact lenses and 66 million bicycles to the poor.
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