Net worth: $51.0 billion (up)
Source: Software, Microsoft
Self-made
Age: 49
Marital status: married, three children
Hometown: Medina, Wash.
Education: Harvard University, dropout
Microsoft's chief visionary moving further away from day-to-day corporate work. For the first time, did not offer a strategy outlook at this year's financial analyst meeting. Instead, prefers to dive into innovative projects, foster collaboration among Microsoft's many divisions. Microsoft aims to be omnipotent, selling software for PCs, servers, cell phones, television set-top boxes, gaming consoles, the Web. Fifteen product launches slated for the next year and a half, including new version of Windows, called Vista, and gaming console Xbox 360. At the ripe (tech sector) age of 30, Gates' company impressively beats rivals in profit margins, market capitalization and R&D budget, but its sales growth is slowing to a (recently) single-digit percentage pace. Like elder statesman of computing, IBM, has been investing heavily in its own stock ($8 billion worth so far). Diversifies methodically, selling 20 million shares every quarter, reinvesting through Cascade Investment. Big stakes in Canadian National Railway, Republic Services, Berkshire Hathaway. Philanthropy, via $29 billion Bill & Melinda Gates Foundation, aimed at fighting infectious disease (hepatitis B, AIDS, malaria) and improving high schools.
No. 2 Warren Buffett
Net worth $40.0 billion (down)
Source: Investments, Berkshire Hathaway
Self-made
Age: 75
Marital status: widowed, three children
Hometown: Omaha, Neb.
Education: University of Nebraska Lincoln, Bachelor of Arts / Science; Columbia
University, Master of Science
Revered investor taking it on the chin over Berkshire Hathaway's General Re
insurance unit; SEC threatening civil fraud suit against General Re Chief
Joseph Brandon over questionable transaction with American International Group.
Also getting it for his board seat at Coca-Cola, where his "independence"
might be compromised by Berkshire's ownership of Dairy Queen, which buys lots
of Coke products. Buffett: "Do they want us to favor Pepsi?" At
Berkshire set in place two governance reforms: regular meetings of directors
without Buffett present; whistleblower line for employees. Sitting on $43
billion in cash, hoped to make some big acquisitions last year, "but
I struck out." Instead, invested in foreign currencies: $21 billion bet
against the dollar and in favor of various other currencies. "In no way
does our thinking about currencies rest on doubts about America." Newspaper
delivery boy filed first 1040 at age 13; claimed $35 deduction for bicycle.
Studied under Benjamin Graham at Columbia. Applied value-investing principles
to build Berkshire Hathaway. Portfolio includes utilities (MidAmerican Energy
Holdings), insurance (Geico, General Re), apparel (Fruit of the Loom), flight
services (FlightSafety, NetJets). Also chunks of American Express, Coca-Cola,
Gillette, Wells Fargo. Instructs managers to run a business as if it's the
only asset the manager's family will own over the next 100 years. Prefers
his investors to buy equities only after careful analysis. "If they insist
on trying to time their participation in equities, they should try to be fearful
when others are greedy and greedy only when others are fearful." Says
he underestimated the severity of certain stocks' overvaluation during the
tech bubble. "I talked when I should have walked." No matter. Since
taking control of Berkshire 40 years ago, has delivered compound annual return
of 22%. "No wonder we tap-dance to work."
No. 3 Paul Allen
Net worth $22.5 billion (up)
Source: Software, Microsoft, investments
Self-made
Age: 52
Marital status: single
Hometown: Seattle, Wash.
Education: Washington State University, dropout
Microsoft cofounder, "wired world" proponent lately finding more
promise in pipes delivering oil instead of information. Bought energy outfit
Plains Resources for $460 million, controlling stake in Plains All American
Pipeline, operator of 15,000 miles of oil pipelines. Through Vulcan Energy
unit, paid $250 million for natural gas storage business from Sempra Energy.
Hasn't given up entirely on the future. Still maintains dozens of investments
in media (Charter Communications), technology (set-top box manufacturer Digeo),
biotech. Ten-year-old investment in wannabe Hollywood studio DreamWorks finally
showing some returns after company took its animation unit public but planned
secondary offering of mostly Allen shares postponed for now. Good times elsewhere
in sports (owns pro football's Seattle Seahawks, basketball's Portland Trail
Blazers), space (funded SpaceShipOne, first to launch private flight into
suborbital space), the open seas (413-foot yacht Octopus armed with 2 helicopters
and a 60-foot submarine). His Paul G. Allen Family Foundation has donated
heavily to education, art and science causes. Joined buddy Bill Gates in 1975,
left the company in 1983 to fight Hodgkin's disease. Has been slowly selling
off Microsoft stake ever since.
No. 4 Michael Dell
Net worth $18.0 billion (up)
Source: Technology, Dell
Self-made
Age: 40
Marital status: married, four children
Hometown: Austin, Texas
Education: University of Texas Austin, dropout
Founder, former chief executive of world's largest PC maker feeling tremors
at the top. Second-quarter revenue up 15% to $13.5 billion, still missed analyst
expectations. Stock sank 13%, biggest dip in almost 4 years. Soft-spoken Texan
started selling computers from University of Texas dorm room 1984; dropped
out to start Dell Computer. Went public in 1988, grew fast with direct-sales
model, kept R&D costs low. Ironfisted chief info officer Randall Mott
led charge to trim spending; swiped by rival HP in July. Steady seller of
Dell stock, pumps cash into private investment firm MSD Capital. Assets include
377-room Four Seasons Resort Maui in Wailea, Hawaii; stakes in IHOP, NorthWestern,
Indiana restaurant chain Steak n Shake. Devoted Republican sits on U.S. President's
Council of Advisors on Science & Technology. Wife, Susan, created fashion
label Phi, sells through Neiman Marcus.
No. 5 Lawrence Ellison
Net worth $17.0 billion (up)
Source: Software, Oracle
Self-made
Age: 61
Marital status: married, two children, three divorces
Hometown: Silicon Valley, Calif.
Education: University of Illinois, dropout
Brash software executive holds Darwinian view of his industry, believes that
fewer companies peddling software will be better for business. In the past
year made 9 acquisitions totaling some $17 billion, including a pending $5.9
billion for Siebel Systems, $10.6 billion for PeopleSoft. "I don't think
you'll see another major acquisition anytime soon." Already strong in
database management software, the newly combined companies will make Oracle
the dominant player in customer relationship management applications. Addition
of boutique software shops I-flex and ProfitLogic will move Oracle into retail
and banking. For now expanded Oracle looking stronger: sales up 16% this year.
But so-called project Fusion, blending Oracle's database technology with PeopleSoft's
business wares, not expected until 2008. Chicago native cofounded database
software firm in 1977, took public in 1986, a day before Microsoft. Maintained
rabid rivalry ever since. Also competitive on the high seas: BMW Oracle Racing
team aiming to win America's Cup in 2007. Recently purchased a dozen residential
and commercial properties in Malibu, Calif. Might have to rethink furnishing
plans in light of pending $100 million charitable gift on behalf of Oracle
to settle insider trading suit.
No. 6 Christy Walton
Net worth $15.7 billion (new)
Source: Retailing, Wal-Mart inheritance
Inherited
Age: 50
Marital status: widowed, one child
Hometown: Jackson, Wyo.
Education:
Widow of John Walton, Wal-Mart heir who died when his ultralight aircraft
crashed in late June. Vietnam vet was director of company, focused on improving
education system, helped more than 67,000 children attend private schools
through Children's Scholarship Fund. Wal-Mart stake believed to be inherited
by wife, Christy, and son, Luke. Fortune created by Sam Walton (d. 1992),
J.C. Penney clerk who opened first discount store in Rogers, Ark. 1962. Took
Wal-Mart public 1970. Spectacular growth since, but stock down 15% this year
on shrinking profits. Wal-Mart still world's largest retailer: more than 5,100
stores serving 138 million customers per week. Sales: $285 billion. Family
controls 40% of Wal-Mart. Rob serves as chairman; his other siblings not active
in company.
No. 7Jim Walton
Net worth $15.7 billion (down)
Source: Retailing, Wal-Mart
Inherited
Age: 57
Marital status: married, four children
Hometown: Bentonville, Ark.
Education:
Son of Wal-Mart founder Sam Walton mourning loss of brother son, John, who
died when his ultralight aircraft crashed in late June. Fortune created by
Sam Walton (d. 1992), J.C. Penney clerk who opened first discount store in
Rogers, Ark. 1962. Took Wal-Mart public 1970. Spectacular growth since, but
stock down 15% this year on shrinking profits. Wal-Mart still world's largest
retailer: more than 5,100 stores serving 138 million customers per week. Sales:
$285 billion. Family controls 40% of Wal-Mart. Brother Rob serves as chairman;
other siblings not active in company. Philanthropic giving through the Walton
Family Foundation. Jim C.
No. 8 S. Robson Walton
Net worth $15.6 billion (down)
Source: Retailing, Wal-Mart
Inherited
Age: 61
Marital status: divorced, three children, one divorce
Hometown: Bentonville, Ark.
Education: University of Arkansas, Bachelor of Arts / Science; Columbia University,
Doctor of Jurisprudence
Brother of John Walton, who died when his ultralight aircraft crashed in late
June. Fortune created by Sam Walton (d. 1992), J.C. Penney clerk who opened
first discount store in Rogers, Ark. 1962. Took Wal-Mart public 1970. Spectacular
growth since, but stock down 15% this year on shrinking profits. Wal-Mart
still world's largest retailer: more than 5,100 stores serving 138 million
customers per week. Sales: $285 billion. Family controls 40% of Wal-Mart.
Rob serves as chairman; other siblings not active in company. Philanthropic
giving through the Walton Family Foundation.Eldest son of Sam Walton (d. 1992),
legendary merchant who opened first discount store in Rogers, Ark. in 1962.
Took Wal-Mart public 1970; explosive growth. Wal-Mart now world's largest
retailer, with more than 5,000 stores. Serves as Wal-Mart chairman. Retail
giant now selling softer side after barrage of criticism over poor worker
benefits, strong-arming suppliers. Family donates via Walton Family Foundation.
No. 9 Alice Walton
Net worth $15.5 billion (down)
Source: Retailing, Wal-Mart
Inherited
Age: 56
Marital status: divorced, two divorces
Hometown: Fort Worth, Texas
Education: Trinity University of San Antonio, Bachelor of Arts / Science
Sister of John Walton, who died when his ultralight aircraft crashed in late
June. Fortune created by father Sam Walton (d. 1992), J.C. Penney clerk who
opened first discount store in Rogers, Ark. 1962. Took Wal-Mart public 1970.
Spectacular growth since, but stock down 15% this year on shrinking profits.
Wal-Mart still world's largest retailer: more than 5,100 stores serving 138
million customers per week. Sales: $285 billion. Family controls 40% of Wal-Mart.
Brother Rob serves as chairman; other siblings not active in company. Philanthropic
giving through the Walton Family Foundation.
No. 10 Helen Walton
Net worth $15.4 billion (down)
Source: Retailing, Wal-Mart
Inherited
Age: 86
Marital status: widowed, four children
Hometown: Bentonville, Ark.
Education: University of Oklahoma, Bachelor of Arts / Science
Mother of John Walton, who died when his ultralight aircraft crashed in late
June. Fortune created by husband Sam Walton (d. 1992), J.C. Penney clerk who
opened first discount store in Rogers, Ark. 1962. Took Wal-Mart public 1970.
Spectacular growth since, but stock down 15% this year on shrinking profits.
Wal-Mart still world's largest retailer: more than 5,100 stores serving 138
million customers per week. Sales: $285 billion. Family controls 40% of Wal-Mart.
Son Rob serves as chairman; other children not active in company. Philanthropic
giving through the Walton Family Foundation.
