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About Me

Darren Winters is a self made investment multi-millionaire and successful entrepreneur. Amongst
his many businesses he owns the number 1 investment training company in the UK and Europe.
This company provides training courses in stock market, forex and property investing and since
the year 2000 has successfully trained over 250,000 people.

Tuesday, 13 May 2014

The Best Place for Billionaires

In the Sunday Times Rich List, which will be published in full this Sunday 18th May, it's revealed that 104 billionaires now call the UK their home. And of these, 72 live in London. That puts the capital top of the list when it comes to billionaires in residence, with Moscow in second place at 48. Here's the list of the top ten:

1. Sri and Gopi Hinduja, £11.9 billion, up £1.3 billion
2. Alisher Usmanov, £10.65 billion, down £2.65 billion
3. Lakshmi Mittal and family, £10.25 billion, up £250 million
4. Len Blavatnik, £10 billion, down £1 billion
5. Ernesto and Kirsty Bertarelli, £9.75 billion, up £2.35 billion
6. John Fredriksen and family, £9.25 billion, up £450 million
7. David and Simon Reuben, £9 billion, up £719 million
8. Kirsten and Jorn Rausing, £8.8 billion, up £3.691 billion
9. Roman Abramovich, £8.52 billion, down £780 million
10. The Duke of Westminster, £8.5 billion, up £700 million

The Duke of Westminster is the only British born billionaire. London attracts others because the UK had a favourable tax regime for 'non-domiciled' residents. As their main residence is abroad they only pay tax on UK income. Additionally, London has good educational facilities, and it's seen as a safe environment.

But what did these people do to become so rich? Let's take a look at each of them.

1. Sri and Gopi Hinduja: - These two brothers run the Hinduja Group, along with two other brothers not resident in the UK. Their father started the business in Mumbai around 1914, and then went international in Iran in 1919. After the Shah was ousted in 1979 it moved to Europe. They now have interests that include finance, energy, banking, real estate, and international trading, to name a few. The shares of some of the group companies trade on the Bombay Stock Exchange and the National Stock Exchange of India.

2. Alisher Usmanov: -  Sixty year old Usmanov is Russian born, and made his money in the mining business. He has since diversified into publishing, telecoms and internet businesses through a holding company, namely USM Holdings, in which he has a 60% share. And he owns 30% of Arsenal Football Club. His strategy seems to centre around making significant investments in companies, rather than owning them outright.

3. Lakshmi Mittal: - Born in India in 1950, Mittal is head of ArcelorMittal, which is the world's leading steel manufacturing company. Mittal's father was also in the steel business in India, but due to restrictions placed on production quotas in 1976, Mittal started his first steel business in Indonesia. Another man with an interest in a football club, this time with a 34% stake in Queens Park Rangers. ArcelorMittal trades on the NASDAQ. Look for symbol 'MT'.

4. Len Blavatnik: - Fifty six year old Blavatnik was born in the Ukraine. He's the chairman of Access Industries, a private company which he founded in 1986. Through it he has investments in companies in sectors such as Natural Resources, Media and Telecoms, and Real Estate. He is an active philanthropist too, donating to organisations like the National Portrait Gallery and the Tate, among others.

5. Ernesto and Kirsty Bertarelli: - He is an Italian businessman, she is a former Miss UK and singer songwriter. In 1996 he became head of a pharmaceutical company founded by his grandfather, and after increasing revenues substantially by moving into biotechnology, it was sold to Merck in 2007. Now his principal business interest is the Waypoint Group, which specialises in asset management and life science investment businesses. He also founded a yachting team that took the America's Cup away from New Zealand in 2003.

6. John Fredriksen: - A Norwegian born in 1944, he is an oil tanker and shipping magnate, who made a lot of money during the Iran-Iraq wars in the 80's, when he collected oil from Iran at high risk and even higher profit. One of the companies he controls through a holding company is Frontline, which trades under the symbol 'FRO' on the London Stock Exchange.

7. David and Simon Reuben: - They were born in India in the 1940's, and the family moved to London in the 1950's. Starting with nothing, they went on to achieve financial success in the metal trading and real estate businesses.  They were heavily involved with Russian aluminium production in the 1990's, and were responsible for 5% of the world output until they sold up and concentrated their wealth into UK property.  They invest in other sectors through their investment company Aldersgate investments, and are active philanthropists through the Reuben Foundation.

8. Kirsten and Jorn Rausing: - These two now control the Tetra Laval Group, which was started by their grandfather in Sweden, and is responsible for the cardboard packaging that you will almost certainly find in the form of milk and juice containers in your fridge. Tetra Laval is a private group. The family has had its share of tragedy. Eva Rausing, wife of Hans, died in 2012 at home, in circumstances suggesting hard drugs were involved. Her husband left her body in the bedroom for two months before police raided their Belgravia home and discovered it.

9. Roman Abramovich: - The Russian born owner of Chelsea Football Club is a well known name in London. He ran a series of small businesses from his flat in Moscow, and became well connected politically when oligarch Boris Berezovsky introduced him to President Yeltsin. He formed a partnership with Berezovsky, and together they gained control of oil company Sibneft in 1997, in a privatisation bid. They paid $100 million, substantially less than the $2.7 billion the company was said to be worth at the time. Abramovich subsequently sold 75% of the shares in Sibneft to Gazprom for $13 billion. He manages his wealth through a private holding company in Moscow.

10. The Duke of Westminster: -  Our very own Gerald Grosvenor, the 6th Duke of Westminster is the UK's richest property developer, owning large parts of Mayfair and Belgravia, and with substantial holdings in Ireland and other parts of the world. All controlled through the Grosvenor Group, a private company. The original investment in Mayfair goes back to 1720.

You can see from the list above that Abramovich, Blavatnik and Usmanov have suffered a decrease in wealth, suggesting that sanctions and a weakening of the Russian economy have taken their toll. And most of those above conduct their business through private holding companies, though if you're interested there may well be a chance to invest in shares through publicly traded subsidiaries.

For more details, make sure you see the Rich List in the Sunday Times this Sunday. 

Darren Winters


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