- Markets Today
- Market Vista
- Equity Probe
- Equityright Blog
- Equity Edge
Carlos Slim born on January 28, 1940, is a Mexican business magnate, investor and philanthropist. From 2010 to 2013 he was the richest man in the world and is currently the 7th on the list. He is also known as the Warren Buffet of Mexico.
Carlos Slim is chairman and Chief Executive Officer (CEO) of the telecommunication companies Telmex and America Movil, the largest mobile-phone company in Latin America.
Slim’s diversified portfolio includes various industries such as telecommunication, education, healthcare, technology, hospitality, real estate, industrial manufacturing, airlines, food and beverages, entertainment, retail, financial services and sports.
Carlos completed his graduation in 1961 and started working as a stock trader in Mexico. Profit from Slims private investment reached to US$400,000 in 1965. This allowed him to start stock brokerage firm Inversora Bursatil and buy Jarritos del Sur in 1965. He founded Inmobiliaria Carso with US$40 million in 1966.
The Mexican economy declined rapidly in 1982, foreign investors were taking money out of the economy and banks were struggling. Slim started investing heavily in companies at less price in these times. Most of theSlim’s business dealings involved a simple method of buying at the low price, waiting for the right opportunity and selling at a profit when the market was performing well.Slimreinvested his earnings in expansion and more acquisition.
Mexican economy recovered in 1985. Slim had heavy investments in different industries including Empresas Frisco, a mining and chemical company producing gold, lead, silver, copper and zinc from extracted ores. He also invested in Industrias Nacobre, a manufacturer of copper products, Compania Hulera Euzkadi, largest tire maker in Mexico, Bimex hotels, and a bulk of shares in Sanborn food retailer by then. In 1984 Slim bought insurance company Seguros de Mexico for US$13 million. He also acquired 40% interest in the Mexican arms of British American Tobacco and 50% interest in the Hershey Company respectively. He then acquired large stakes in Denny’s and Firestone tires. Most of the acquisitions were financed by cash flow and revenue generated from Cigatam, which he bought during the economic crisis.
In the early 1990s,Slim made a large amount of wealth when Mexico privatized its telecom industry and Grupo Carso acquired Telmex from the Mexican government. Slim acquired Hoteles Calinda (OSTAR Grupo Hotelero) in 1991 and increased his stake in General Tire and Grupo Aluminio in 1993.Grupo Carso was divided into three companies in 1996: Carso Global Telecom, Grupo Carso, Invercorporacion.Slim decided to expand his business beyond Latin America in 1999. He kept his holdings in Mexico and expanded his business in the United States for overseas investments. Slim purchased a largestake in US retailers such as OfficeMax, Circuit City, Barnes& Noble, Office Depot, CompUSA and Borders. He founded Telmex USA and acquired stakes in Tracfone, a US-based cellular telephone Company. At the same time within Grupo Carso he established Carso Infraestuctura y Construccion, S.A (CICSA) a construction and engineering company.
Along with TV host Larry King, Slim established Ora TV in March 2012. Slim bought 30% of two Mexican soccer teams Pachuca and Leon through his telecommunication company America Movil in September 2012. Slim’s company America Movil, in July 2013 Invested US440 million in Shazam, a British Commercial mobile phonebase music identification.Slim invested US$60 million in November 2013, in the Israeli startup Mobli, the company which deals with the connection between different people and communities. Slim in July 2014, invested in WellAware a Texas-based oil and gas software developer with former Republican vice president Dick Cheney. Slim established his own oil company, Carso Oil and Gas on April 15, 2015. The company was established when the shareholder of Grupo Carso subsidiaries voted to merge Carso Infraestructura, Construccion y Perforacion, and Condumex Perforaciones into Carso Oil and Gas in February 2015. Carlos Slim has donated US$4 billion to date to the Carlos Slim Foundation for philanthropic efforts. He has funded researches in medicine while subsidizing various arts and education projects in Mexico City. Carlos Slim has also founded three nonprofit organizations in Mexico City: one for arts, education and health care, one for sports and one for downtown restoration.