Imagine if the grocery store, the cell phone provider, and biggest national construction outfit were all owned by the same company—you could buy just about anything and never have to enrich any competitors. His savvy, yet no-nonsense investment philosophy and impeccable track record as an investor have earned him the nickname the "Warren Buffett of Mexico. However, his business interests are far more comprehensive, reaching into every nook and cranny of the Mexican economy, and beyond. How he amassed his multi-billion dollar wealth is a study in both business acumen and political connections.

Carlos Slim was born on Jan.

The family was part of a small, but commercially prosperous, community of Lebanese Christians who poured into Mexico in the late s and early s. With proceeds from the store, he would go on to buy prime real estate in Mexico City for a pittance during the Mexican Revolution.

And his father happily obliged with business lessons about management, reading financial statements and keeping accurate financial records.

In , when Carlos was only years-old, his father died. When Slim graduated high school, he went on to the National Autonomous University of Mexico, where he studied civil engineering while teaching algebra and linear programming as well.

While studying civil engineering, Slim also took an interest in economics, taking a series of courses on the subject in Chile after he graduated in He went into finance shortly afterward, working long, grueling days as a stock trader in Mexico City. It was his first business. How Carlos Slim Built His Fortune.

Slim became a billionaire during the currency devaluation and economic crisis in Mexico by investing aggressively and buying entire companies that would soon recover. He was 42 at the time. Is It the End of the Mexican Telecom Monopoly? Grupo Carso has stakes in enterprises as diverse as Elementia, one of the largest cement companies in Mexico, a hand in retail via Sears , energy and construction via CICSA and automotive via Grupo Condumex.

Perhaps the biggest piece of Slim's wealth comes from telecommunications. Carlos Slim was at the helm of Grupo Carso, and as such took over at Telmex. For related reading, see: Piggyback the Smart Money.

Slim's telecom empire reaches every country in Latin America, except Venezuela and Bolivia. Yet it wasn't necessarily a deep knowledge of technology or telecommunications that made the company what it is today. Slim has often said that his strategy is to reinvest the profits into the business itself and fuel growth. Telmex, for example, invested billions over several years to install an updated fiber network in the s, and that left the company in a position offer high-speed internet service.

The pattern is typical of Slim's business deals over the course of his life — buy an asset, reinvest, and sell at a profit. Telecommunications is only the most visible piece of that strategy. Slim's strategy has been to buy up sometimes troubled companies and try to turn them around. The advantage of that model is that it doesn't necessarily require a specific knowledge of any given sector—just a keen sense of what is undervalued and what isn't. Also, the conglomerate structure allows him to have stakes in such a diverse range of industries that his wealth is well-prepared to maneuver global financial turbulence.

His stocks might lose value in a general market downturn that affects the whole economy, but a problem in the telecommunications industry won't hurt his numbers much because some other sector will likely be doing reasonably well. Slim is also less interested in the fine details of the businesses he buys.

Carlos Slim - Wikipedia

Any transaction is just that — the goal is to sell his stake at a profit later. Another issue is monopolistic practices.

One of the assets Slim picked up with Telmex was one of the largest Mexican makers of copper wire. He then stopped Telmex from buying wire from the company's competitor. However, when the Mexican government attempted to increase competition in the phone business, it didn't account for the fact that new companies had to pay Telmex an interconnection fee. Telmex simply set such fees very high, making it tougher for any other provider to undercut prices, especially for long distance calls.

Eventually, the practice stopped, after much negotiation between the government, Slim, and the upstarts. How Monopoly Antitrust Laws Affect Consumers. Even when anti-monopoly laws force Slim's companies to sell assets, there's a sense that it might just be an end-run around the law. For example, in January , a Mexican court ordered Telmex to stop selling a division that holds fiber optic lines and telephone poles.

The aim was to sell the division, since once the division was no longer part of Telmex, the company likely wouldn't fall under certain antitrust rules anymore, giving Slim a freer hand. Critics have noted that with Slim's companies owning such large market shares, and driving out competitors, the Mexican economy has suffered. A lack of an even playing field means that new entrants have a tougher time mounting a challenge to an incumbent player.

In , Slim was the second-richest man in the world according to Forbes, but has been a challenge for the Mexican tycoon. Currently he is the fourth-richest man in the world, and he was the biggest dollar loser on the Forbes Billionaires List. In , Mexican President Enrique Pena Nieto signed a new law aimed at increasing competition in the telecommunications arena.

AMX posted a significant profit drop in the second quarter of New challenges lie ahead for the telecom giant in upcoming years.

That said, Slim, through his reported billions in charitable donations, has taken steps to alleviate the poverty of his nation.

He has also spoken publicly of the vital importance of alleviating poverty. In the past, it was something ethical and moral. To take poor people out of poverty and put them in the modern economy is very good for the economy, for the country, for society and for business.

How did Carlos Slim Helú get rich? | aqasesuyohaw.web.fc2.com

The Economist has reported that Mexicans pay far more for phone calls—between four and ten times as much—as people in developed countries. However, much like Warren Buffett who he is often compared to, Slim is known for his modest lifestyle. He has lived in the same six-bedroom home in the Lomas de Chapultepec district of Mexico City for most of his life.

Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund. Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Carlos Slim's Net Worth: How He Built His Wealth By Investopedia September 29, — 3: Early Life Carlos Slim was born on Jan.

Turnaround Specialist Slim's strategy has been to buy up sometimes troubled companies and try to turn them around. Carlos Slim Corners the Market Another issue is monopolistic practices.

What do you do with your money when you're one of the world's wealthiest individuals? If you're Carlos Slim, you give a lot away. Find out how the once-richest man in the world, Carlos Slim, invests his money to ensure that he doesn't lose his billionaire status.

A monopoly has dominated the Mexican telecom market for decades, but new regulations are changing that. Where will Carlos Slim's competition come from? Most people in the know have heard of Carlos Slim and his massive fortune. But what about Mexico's other richest people? As Latin American countries strive for technological innovation, the telecommunications industry takes notice.

What kind of education do billionaires have? You might be surprised. What kind of education does it take to become a billionaire? We take a look at the formal and informal education of the world's five richest people.

Here are some of the biggest market pundits' latest calls and how you can profit from them. The iShares MSCI Mexico Capped ETF EWW is one-stop shopping for your exposure to a growing Mexican economy. Learn the primary stock market indicators for the Mexican stock market and the leading economic indicators analysts use to Monopoly, as a theoretical economic construct, prevails when barriers to entry exist because one firm can operate at a lower Learn the difference between a developed economy and an emerging market economy, and understand why Mexico is an emerging Read about some of the risks associated with investing in telecommunication stocks, including several that are specific to Warren Buffett may have been born with business in his blood.

He started saving while other children were at the playground, Find out why you should gravitate toward telecommunication stocks when seeking high dividends.

An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.

How Much Does Carlos Slim Make a Day? - Salary Make

A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other.

A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over No thanks, I prefer not making money.

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