A SAUDI PRINCE has "severed ties" with Forbes magazine saying it has undervalued his wealth by $9.6 billion in its annual rich list. As result, he is rated only the world's 26th richest man when in his view he should be 10th. Prince Alwaleed bin Talal, whose investment interests include Twitter, News Corp and London's Savoy Hotel, disputed the list after Forbes put his net wealth at $20 billion. Alwaleed estimates it is $29.6 billion. See The Business for The Week’s daily news round-up, He blasted the publication's "flawed" valuation methods, saying they "seemed designed to disadvantage Middle Eastern investors and institutions", the Financial Times notes.A statement from the tycoon's Kingdom Holding Company said he would longer cooperate with Forbes but would continue to work with those compiling the rival rich list - the Bloomberg Billionaires index, which ranks him as the world's 16th richest man. Alwaleed's placement isn't the only eyebrow-raiser on this year's Forbes list. Warren Buffett, the so-called 'Sage of Omaha', has dropped out of the top three for the first time in 13 years. The billionaire American investor, estimated to be worth $55.5 billion by Forbes, has been overtaken by Zara fashion chain founder Amancio Ortega, the richest man in Europe. Mexican business magnate Carlos Slim topped the list for the fourth time in a row with an estimated worth of $73 billion, followed by Bill Gates with $67 billion. The average age of the ten richest individuals was 74. According to Forbes, the dollar billionaires club welcomed 210 new members in the past year, taking the number up to a record 1,426. The top ten: 1. Carlos Slim $73bn, 2. Bill Gates, $67bn, 3. Amancio Ortega, $57bn, 4. Warren Buffett, $55.5bn, 5. Larry Ellison, $43bn, 6. Charles Koch, $34bn and David Koch, $34bn (joint entry), 8. Li Ka-shing, $31bn, 9. Liliane Bettencourt and family, $30bn, 10. Bernard Arnault and family, $29bn.Source: The Week UK
Prince Alwaleed bin Talal challenges Forbes rich list
World’s rich getting richer
According to the Bloomberg business news agency, the combined assets of the world’s 100 richest people grew by $241bln in 2012 to almost $1.9trln.
The fastest fattening were the tycoons of the telecommunications and the retail industries. The top position in the rich list was retained by the 72-year-old Mexican telecommunications mogul Carlos Slim. Position Two was retained by Bill Gates. Spain’s Amancio Ortega, 76, the owner of the Zara clothing chain, replaced America’s Warren Buffett as the world’s third richest person. Ortega also was first in terms of capital accumulation in 2012. TASS, Source: Voice of Russia
Warren Buffett lays down logic against dividends
In his latest annual letter to shareholders, Buffett explains why paying dividends doesn't make sense. The annual letter that Warren Buffett writes to his shareholders is something of an event in the business world. What is normally mundane business communication from other CEOs, has become an art form in Buffett's case. This year's letter has excited media people more than most because it has a long discussion about the media business. Over the last few years, Buffett has bought a string of newspapers even though the newspaper is widely understood to be in severe decline in the US. However, the most interesting part of the letter is Buffett's response to the constant clamour for dividends that he hears, given his holding company Berkshire Hathway's $50 billion cash chest. He lays down four uses to which a company can put its cash, in decreasing priority. First, it should reinvest the money in growing its core business. If that cannot be done productively, then it should use the cash to acquire or expand into other businesses. If that too is not feasible, then it should repurchase its own shares if they are available cheaply enough. He lays down 120% of book value as the standard for cheap enough that Berkshire follows. He terms share buybacks at this level as 'buying a dollar for 80 cents'. Only if this too is not possible should a company consider paying dividends. It's an interesting view, and one which is hard to fault. The logic of prioritising share buybacks over dividends is sound, even though it won't sound so to Indian ears. But what about investors who want a cash income from shares? Buffett's recipe is interesting - sell some stock to realise the amount you want. He says that this always leads to a better outcome for the business and the shareholder, including in tax-efficiency. The letter is a great read, but don't take my word for it - download it and read it for yourself. Source: Hindustan Times
Warren Buffett adds Tulsa World to his newspaper portfolio
Warren Buffett yesterday acquired another small newspaper in Tulsa, Oklahoma, to his growing portfolio of small town community-focused newspapers. A subsidiary of Buffett's investment arm Berkshire Hathaway, BH Media Group, yesterday acquired the Tulsa World, which has a daily circulation of 95,000, from the Lorton family for an undisclosed sum. Founded in 1905, Tulsa World is owned and operated for four generations by the Lorton family of Tulsa. With a daily circulation of 95,000 and a Sunday circulation of 133,000, Tulsa World is th elargest and best-read local newspaper in Tulsa County and the surrounding areas and is the second-most widely circulated newspaper in Oklahoma, after The Oklahoman. Robert Lorton Jr, the chairman of the World Publishing Company, which owns the Tulsa World, said selling to Berkshire would provide a secure future for the Tulsa newspaper. "Our family takes great pride in the Tulsa World and its many years of service to Tulsa and Oklahoma. The newspaper business has become a difficult business model within a changing society and in particular for local family owned newspapers." Tulsa World will now be merged with BH Media Group, which already owns 28 daily newspapers and 42 weekly newspapers in Nebraska, Iowa, Texas, Oklahoma, Virginia, North Carolina, South Carolina, Alabama and Florida. It will be the third-largest newspaper in the BH Media Group portfolio, behind the Omaha World-Herald in Nebraska and the Richmond Times-Dispatch in Virginia. Two years ago, Buffett, a former newspaper delivery boy, told Berkshire Hathaway shareholders that most US newspapers could face unending losses and that he would not think of buying most of them. Although most analysts do not see long-term value of the print media, Buffett has now reversed his opinion and has defended newspapers, saying that they will have a decent future if they continue delivering information that cannot be found elsewhere. "In towns and cities where there is a strong sense of community, there is no more important institution than the local paper," Buffett had said. Terry Kroeger, the CEO of BH Media Group, said, "The Tulsa World is a special newspaper in an outstanding market, and we are honoured to have the opportunity to own it. This is a great fit for our company, and we look forward for this region." Kroeger added that the newspaper's circulation, profitability and its strong connections to the local community made the World an attractive purchase and community-oriented newspapers are key to the BH Media Group strategy. Warren Buffett had acquired 63 Media General newspapers last year for $142 million and the Omaha World-Herald Co for a reported $150 million and folded them into a new Berkshire Hathaway division called BH Media Group that is managed by World Media Enterprises. Buffett is also the largest shareholder in Washington Post with a 23-per cent stake, and holds a small stake in the reorganised newspaper chain Lee Enterprises. Source: Domain-B
Zuckerberg donates $500mln to charity
Zuckerberg said on Tuesday that he made a contribution of 18 million Facebook shares to the Silicon Valley Community Foundation to “lay the foundation for new projects.”
The gifts are part of Zuckerberg's involvement in The Giving Pledge. Launched by Microsoft founder Bill Gates and investor Warren Buffett in 2010, the group asks US billionaires to give away at least half their wealth during their lifetime or after their death and to publicly state their intention with a letter explaining their decision. Voice of Russia, Reuters, Surce: Voice of Russia
Warren Buffett's berkshire leads $28bn Heinz buyout with 3G
US BILLIONAIRE Warren Buffett is to buy food giant Heinz in a $28bn (£19bn) deal the FT has labelled the "takeover of the year". Heinz is a typical target for the 82-year-old magnate, known as the Sage of Omaha and famous for buying consumer brands that won't be "derailed by the digital age", the Guardian's Nils Pratley notes. Pratley argues the joint acquisition of the firm by Buffett's company Berkshire Hathaway and private equity firm 3G – which saw shares in Heinz soar by nearly 20 per cent on Wall Street – could mark the beginning of a deeper relationship between the two companies. "Buffett was falling over himself to heap praise on 3G leading light Jorge Paulo Lemann," Pratley writes. "Could bagging Heinz also be a prelude to more deals?" Heinz is Buffett's first significant acquisition since railway company Burlington Northern Santa Fe in 2010 – but Bloomberg's Business Week cautions against any expectations the 82-year-old is about to retire. The billionaire businessman remains in "good health" despite undergoing treatment for prostate cancer last summer, Bloomberg says, so "Heinz isn't likely to be the last condiment Buffett adds to Berkshire's investment meal". Buffett himself told CNBC yesterday he remains in the market for further acquisitions, adding he is "ready for another elephant, so if you see one walking by just tell me". It seems he has been planning the deal, which Heinz said was the largest food buyout in history, for some time. Buffett revealed he's had a file on the firm, famous for its ketchup and beans, since 1980. "It's our kind of company," he said, adding: "Anytime we see a deal is attractive and it's our kind of business and we've got the money, I'm ready to go." Source: The Week UK
Warren Buffett company purchases two California wind farms
Billionaire Investor Warren Buffet has added two huge California wind farms to his energy portfolio. Over the weekend, MidAmerican Wind, a subsidiary of Buffet's Berkshire Hathaway announced it has purchased two wind projects from California Highwind Power. The two projects are the 168 MW Alta Wind VII and the 132 MW Alta Wind IX. In a written statement MidAmerican Wind president Tom Budler said the purchases demonstrate his company's commitment to developing wind generation in the US. “The two projects, which are part of the largest wind farm in the country, make an excellent addition to our growing portfolio of renewable energy assets as we continue to evaluate and acquire wind projects,” he continued. The wind farms are part of the larger Alta Wind Energy Center. When the entire center is complete, it will have a total capacity of 1,329 MW and supply power to Southern California Edison, with which it has a power purchase agreement through 2035. The wind projects purchased by MidAmerican Wind will employ 100 Vestas 3 MW V90 wind turbines. Source: Renewable Energy Magazine
Australia may have a 'millionaires' tax' soon
Melbourne: The rich in Australia may soon be forced to pay "millionaires' tax" with the country's powerful trade union calling the government to slap such a tax, similar to US President Barack Obama's so-called "Buffett rule." The Australian Council of Trade Unions (ACTU) is debating a reform that includes shifting the tax burden of low and middle income earners to millionaires and billionaires. ACTU said it wants to ensure that mining billionaires like Clive Palmer, Andrew Forrest and others made a minimum tax on their returns, The Age reported. "The income tax system is absurdly inequitable when it comes to taxing the mega-rich," said Tim Lyons, ACTU's assistant secretary general, as the organisation debates the hot issue at their conference in Sydney next week. He said tax reforms announced in the federal budget had made the system more progressive, but there was more that could be done to ensure the wealthy pay their fair share. The ACTU wants the government to adopt an Australian version of Buffett rule that would ensure millionaires who principally derived their income from capital gains paid at least as much in tax as a proportion of their incomes as ordinary working Australians. With the economic downturn still gripping the world's advanced economies, Australia is the second country to moot a "millionaires' tax" inspired by multi-billionaire Warren Buffett and Obama. After comments from Buffett that some millionaires paid a smaller percentage of their incomes in taxes than many middle-class families, the Obama administration has proposed the Buffett Rule. The White House's website describes the rule that no household making more than USD 1 million should pay a smaller share of their income in taxes than middle-class families pay. "The Buffett Rule would limit the degree to which the best-off can take advantage of loopholes and tax rates that allow them to pay less of their income in taxes than middle-class families."Source; Financial Express
Warren Buffett has prostate cancer
Warren Buffett has been diagnosed with Stage 1 prostate cancer, his Berkshire Hathaway company announced Tuesday afternoon. In a letter to company shareholders, the 81-year-old billionaire investor reassured them that his condition was not life-threatening and that he had decided on a two-month treatment of daily radiation to begin in mid-July. Tags: World, Society, News, Warren Buffett, Читать далее, Source: Voice of Russia.
