wealth

Brazilian businessman wealth has decreased by over 99%

Brazilian businessman Eike Batista’s wealth has decreased by over 99% between March 2012 and July 2013, from a peak net worth of $32 Billion to $200 million and may hold the record for having been the fastest destroyer of wealth.

On July 26, 2013, Bloomberg News reported his losses as “historic”. The losses can be attributed largely to the downturn in the precious metals mining industry as well as a catastrophic collapse of Batista’s OGX, which claimed it would pump 750,000 barrels of oil a day—only to find itself pumping 15,000. Additionally, other economic issues and management decisions factored in as well. Bloomberg News has attributed this fall to a “Perfect Storm”.

Eike Batista has been known to have claimed publically several times that he would overtake Mexican baron Carlos Slim Helu to be the world’s richest man by 2015. However, akin to Japanese businessman Masayoshi Son, who lost over 90% of his fortune during the dotcom boom of Y2K, Batista’s wealth has decreased by over 99% between March 2012 and July 2013, from a peak net worth of $32 Billion to $200 million. Many business and finance related media, such as Forbes Magazine and Businessweek, are still in the process of concluding whether Eike Batista holds the record for having been the fastest destroyer of wealth.

Eike Batista, who has written in Brazilian newspapers about his loss of fortune and fall from billionairedom, has admitted that he regretted listing his companies in the stock markets, and that in retrospect a private equity model of financing his ventures would have been more suitable. Lastly, Batista has claimed that he would leave no creditor unpaid, and that he would fulfill all of his debt obligations.

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