Financier Leonid Blavatnik
Many new investors make the mistake of avoiding assets in industries in which they are not experts.
It is quite stupid to think by the standards of an oil worker or a steel worker, trying to delve into the technical process in order to assess the efficiency of the enterprise.
To do this, it is enough to carefully study the economic statements, profit indicators and understand how unique the product in front of you is.
Billionaire Leonid Blavatnik was guided by a similar logic, who in many of his interviews said that he did not understand oil production and aluminum smelting at all, but this in no way prevented him from earning billions of dollars by investing in this business.
The future billionaire, and one of the leaders of the Forbes list, was born in 1957 in the city of Yaroslavl.
Almost from birth, he was instilled with a love for mathematical sciences, because his father was a professor at the local polytechnic university. Therefore, as soon as Leonid grew up, he was sent not to a regular school, but to a specialized mathematics school. However, he was also very drawn to cinematography and even went to one of the local circles.
After school, the gifted mathematician's choice fell on Moscow State University, the Faculty of Mechanics and Mathematics. However, despite his incredible exam results and excellent scores, he was rejected for internal reasons.
Therefore, without thinking twice, he entered an equally reputable institution called the Moscow Institute of Transport Engineers, Faculty of Computer Science. It was there that the fatal acquaintance with Vekselberg took place, with whom he would begin to build his investment empire.
While still a student, he was drawn to business and profit. Once, when they were on practice in one of the cities of the USSR, he bought a whole box of stew, which he barely made it to the bus.
When others laughed and were surprised, Leonid and Vekselberg knew for sure that stewed meat was in short supply in their region, so by selling it they could earn good money.
But the Blavatnik family did not see themselves in the USSR, so having dropped out completely after the fourth year, they moved to the USA, where they received citizenship.
He continued his studies at Columbia University, where he became a Master of Computer Science, one of the most brilliant IT specialists.
First job and beginning of a career.
The young programmer's first job was at the American clothing store chain Macy's, where he had to set up the company's information system and modernize it.
When everything was ready, management was so delighted with him that they offered to choose a reward. Instead, he asked to write a recommendation for admission to Harvard Business School.
While studying at Harvard, he worked as an auditor at one of the largest firms, Arthur Andersen, and in 1986 he created a personal investment company, Access Industries.
Access Industries.
She invested in the transportation sector, so Leonid Blavatnik acquired new connections in the USA and Europe. Knowing this, Vekselberg, who was a shark in the Russian market, offers Blavatnik to create a joint venture, which is now called Renova.
Their first target is aluminum smelters. At that time, companies had huge reserves of aluminum alloy that they could not sell.
Therefore, Leonid Blavatnik establishes connections in the USA and sells the first 500 tons of aluminum, becoming almost the only bridge to the sales market. He also becomes the largest shareholder of UC Rusal, TNK. At that time, Russia was overwhelmed by corporate wars, because both crime and business, as well as government officials, competed for enterprises.
Therefore, when British Petroleum offered to buy out the shares of TNK, he immediately got rid of the problematic asset, earning more than $2.1 billion. He directs the freed up money, which is 2 billion from sales and 3 billion from dividends, into investments abroad.
Blavatnik, after exiting the Russian market, immediately bought the division from General Electric and the giant Lyondell Chemical.
The deal was finally completed in 2007, and just two years later a severe crisis began, which drove Lyondell Basell into debt of $20 billion.
However, at the moment when creditors began to tear his companies to pieces, Leonid declared bankruptcy, and with the help of the courts he achieved that the amount of debt was written off.
As soon as he got rid of his debts, he immediately entered the New York Stock Exchange with shares of the company, which brought him more than 2 billion.
Then Leonid Blavatnik buys Warner Music Group, the world's largest record company, for $3 billion. At this stage, Leonid Blavatnik's personal fortune is estimated at more than $13 billion.