John Grill, chief executive of engineering firm Worley Parsons, has also had a good start to the year, with his stake jumping from $459 million to $774 million.
So how are these rich entrepreneurs rebuilding their wealth? Here are four quick strategies we are seeing:
They are looking for new markets
John Grill’s WorleyParsons has been hit hard by the troubles in the resources sector, but has worked hard to move into new sectors. For example, the company recently won lucrative contracts with the Egyptian nuclear energy agency.
They are riding high on M&A speculation
The collapse of Rio Tinto’s investment deal with Chinese miner Chinalco helped Andrew Forrest’s Fortescue Metals Group as investors placed bets on whether FMG might be a new target for the Chinese.
They are staying sheltered from the storm
Paul Ramsay has two major investments: Prime Media and Ramsay Health Care. The first is being pummeled as a result of the downturn, but Ramsay – which is benefiting from the long-term trend of Australia’s ageing population – is flying, and upgraded its profits in May.
They are receiving a helping hand from the Government
Gerry Harvey has been talking down the affect of the Government’s cash handouts, but there is little doubt they have helped his business weather the worst of the downturn.
They are pulling out of deals
Shares in James Packer’s casino business Crown announced it was out of a deal to buy US gaming business Cannery. As we’ve said before, not doing something can be just as smart as actually making a deal.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
