Prince Earns Fortune the Old-Fashioned Way
He was born into one of the world’s richest families, the ruling Al-Sauds of Saudi Arabia.
But billionaire Prince Waleed bin Talal has set himself apart from many of the rest of his clan. He has made a fortune in just 15 years--by working for it.
Although his rise to become one of the world’s richest men is not exactly a rags-to-riches tale, Waleed nevertheless built his wealth on a loan of just $300,000. And he had to borrow that from a bank because his wealthy father wouldn’t lend it to him.
Today, his global empire is worth about $11.3 billion. Among his holdings are stakes in Apple Computer, Trans World Airlines, Saks Fifth Avenue stores, the Fairmont and Four Seasons hotel chains, the Donna Karan fashion house and Planet Hollywood restaurants.
Waleed, 41, a nephew of King Fahd born of a Lebanese mother, says his strategy is simple: Find good companies that are undervalued because of temporary financial or management problems.
“If something is worth $4 billion but going for $1 billion, we buy,” Waleed said in a rare telephone interview from Paris, where he visits often.
For his daring but successful strategy, Forbes magazine named Waleed in July as the world’s second-most creative and successful businessman. Microsoft chairman Bill Gates was ranked first.
The prince first turned heads when he bailed out New York-based Citibank in 1991. At the time, the bank was in dire straits because of bad Third World debts and investors were staying away.
Waleed ignored the naysayers and pumped $800 million into what looked like a losing proposition. Instead, the money turned Citibank’s fortunes around, and his investment soared eightfold.
In 1994, he was the white knight who rescued Euro Disney by purchasing a 24% stake in the debt-ridden theme park outside Paris. That brought him a fortune too.
“He had a number of high-profile contrarian successes, and that’s what draws attention. It lends an aura to his astuteness,” said Daniel Kunstler, a San Francisco-based financial analyst at J.P. Morgan Securities.
Waleed says that with each investment, he asks himself: “Will it be profitable?” But there are certain industries the devout Muslim shuns, such as alcohol, gambling and tobacco, which are either forbidden or frowned on by Islam.
Even in a country awash in oil wealth, Waleed stands out for his riches. And in a royal family whose thousands of princes are known for sometimes blowing their allowances on women, gambling and alcohol, he stands out for his reputation for clean living.
The twice-divorced father of two is a fitness fanatic who doesn’t smoke, drink, womanize or gamble, acquaintances say.
He has a small army of financial consultants on his payroll, but is not content with letting them look after the details.
“The prince is the most thorough businessman I’ve ever met,” said Vernon Casson, a Riyadh-based lawyer who worked with the prince on the Euro Disney purchase. “He knows every aspect of every deal he invests in. He does his homework, and when he doesn’t know something, he asks a million questions.”
Despite a heavy workload, Waleed makes time for his 15-year-old daughter, Reem, and 19-year-old son, Khaled. They have lunch together every day, and spend summer vacations aboard their 282-foot yacht, Kingdom, named after his flagship company.
Waleed’s other indulgences include two private jets, more than 250 cars and a $20-million sports complex with Olympic-size swimming pool and bowling alley.
When asked whether he sees himself first as a businessman or as a prince, Waleed hesitated.
“The first one I earned; the second I inherited. And I’m equally proud of both,” he said. “It is God’s blessing.”
