By Shawn D. Baldwin
The prolific growth and subsequent value creation of the companies launched by Carlos Slim Helu (left) catapulted him to being named the world’s richest man (surpassing Bill Gates) according to Forbes in 2010, 2011, 2012 and 2013. This is an incredible feat, as most people had believed surpassing Bill Gates in net worth to be a fantasy. It is all the more notable because Carlos Slim (as he’s called) is from a developing country, Mexico. He comes from very humble beginnings, but he began his investing career at the early age of 12. He initially made his first fortune in real estate, becoming a millionaire in his early 20′s, and he has since created a net worth of over $73 billion dollars through his companies. Slim’s holdings are diverse, ranging from securities and banking to insurance and real estate. However, he is most well known for his success in the telecommunications industry. His core holding is America Movil SAB (AMXL) which operates in 18 countries, takes in revenues of over $59 billion, and has over 150,000 employees.
The telecommunications industry is well-suited for outlining Value Creation (a series this author, Baldwin, writes for Fast Company). The telecom sector, driven by wireless technology and innovation, has been a dominant generator of wealth and jobs. As a point of reference, the telecom sector was up last year over 21% and has a total market capitalization of over $93 billion. The capital markets believe the sector has tremendous upside, as we saw Verizon close the largest bond transaction in history — a $50 billion bond deal last year. Slim sees more potential opportunities in telecom and for American Movil. He says the industry will invest over $9 billion over the next four years, citing greater speed and services for small business as the particular growth engines.
Despite his immense wealth, the first most notable thing about Slim is his extreme humility. Despite being a multi-billionaire, Slim resides in a relatively modest six-bedroom house that is less than a mile away from his office. He personally doesn’t ascribe to the concept of conspicuous consumption, and doesn’t have a super yacht or multiple mansions around the world. He doesn’t have a fleet of high-performance, exotic cars, and he still prefers to drive himself. (more…)