Thursday, September 18, 2014

Get to Know the Filipino Tycoons

In choosing which stocks to invest in the Philippine stock market it is not enough to know only the figures; e.g.. upside or potential capital gains, dividends payout, the stock's past performances and the P/E ratio (or P/BV for banks). It is also equally important to know the people at the helm of each company.

Consider that you are entrusting actual people your hard-earned money, expecting that they will continue to run their businesses well in order for you to take part in the future earnings.

Read up and know more about the tycoons that are running the business empires, the major players in the Philippine economy. Because when you invest in their businesses through stocks investing, they become your partners.

Below is a compiled list of known tycoons, culled from different sources but mostly taken from Philippines' 50 Richest published by Forbes in August 2014.

#1 Henry Sy & family

Net Worth: $12.7 Billion
Age: 89, Source of Wealth: diversified, self-made

Henry Sy is the man behind SM Prime Holdings (SMPH), the country's largest mall operator, and Banco de Oro (BDO). As of December 31, 2012, SMPH has 46 SM Supermalls in the country. Likewise, the Company also has 5 Supermalls located in the cities of China.

Kids run things now, but Hawaiian shirt-clad Henry was once a frequent sight in malls' halls. Studied retail at father's elbow in family's convenience store. Wasn't satisfied with merely filling dad's shoes. Saved up to start footwear shop, the humble origins of retail empire.

#2 Lucio Tan & family

Net Worth: $6.1 Billion
Age: 80, Source of Wealth: diversified, Self Made

Lucio Tan keeps long-held red ribbon as second richest. Impressive given 32% drop in his main holding, LT Group (LTG) formerly known as Tanduay Holdings, Inc (THI), since last time fortunes were calculated. With roughly 45% of its revenue from cigarettes, dreary forecast for that industry coupled with black market for smokes have upset investors. Shareholders can drown their sorrows in another LT Group product; it owns brewery behind popular pale lager Beer na Beer. Lucio Tan's Group of Companies include Tanduay Distillers, Asia Brewery, Philip Morris Philippines Manufacturing, Eton Properties Philippines and Allied Banking Corporation, which was merged in Feb 2013 with Philippine National Bank (PNB). On 15th of September 2014 Tan officially reclaimed management control of flag carrier Philippine Airlines after executing the buyout of the 49-percent stake held by conglomerate San Miguel Corp.

Lucio Tan mopped floors to pay for school, then became a chemical engineer.

#3 Enrique Razon, Jr.

Net Worth: $5.2 Billion
Age: 54, Source of Wealth: ports

Enrique Razon Jr. is the casino chief placing a big bet on continued expansion of Solaire Resort & Casino, under Bloomberry Resorts Corporation (BLOOM). Solaire is adding 300 more rooms, a shopping mall and a theater. Eyeing future plays in Macau, Japan and Latin America. Known as Ricky to all, made first fortune not with poker tables but with ports. Inherited International Container Terminal Services (ICT), which operates ports in 22 countries, from father in 1995. In downtime find him on the links: avid golfer backs the Philippines Golf Tour.

#4 Andrew Tan

Net Worth: $5.1 Billion
Age: 62, Source of Wealth: diversified, Self Made

Andrew Tan is the property plutocrat with large stake in Megaworld (MEG), builder of apartment complexes doubling as small cities. Big into brandy, too: His Emperador Distillers (EMP) went public last year and agreed to buy Scotchmaker Whyte & Mackay for $720 million in May. Fortune also extends to 408 McDonald's restaurants in the Philippines (owns franchise via his Alliance Global conglomerate, AGI), and Resorts World Manila (under Travellers International Hotel Group Inc., RWM).

#5 John Gokongwei, Jr.

Net Worth: $4.9 Billion
Age: 87, Source of Wealth: diversified

Prosperity abounds at conglomerate, JG Summit Holdings (JGS), which John Gokongwei Jr. founded. Stock is at record highs. Another part of fortune in Robinsons Retail Holdings' (RRHI) department stores, supermarkets,; it went public in largest Filipino IPO last year. JGS, through itssubsidiaries, also has branded foods businesses in the People's Republic of China and the ASEAN region, including an interest in a property development company in Singapore. JGS' subsidiaries and affiliates include JG Summit Petrochemical, Cebu Pacific Air (CEB), Bauang Private Power Corporation, Universal Robina Corporation (URC), Robinsons Land Corporation (RLC), Robinsons Bank Corporation, and Summit Media (also JGS also has 27.1% stake in Meralco.

#6 David Consunji

Net Worth: $3.9 Billion
Age: 92, Source Of Wealth: construction, Self Made

David Consunji is the construction czar whose wealth has increased with 60% rise in his DMCI Holdings' stock (stock code DMC). Foundation for fortune: early gig as a concrete inspector. Laid real cornerstone in 1954, when he founded DMCI. It has built more than 500 buildings since. One particularly opulent offering: Taguig-based Acacia Estates. His son Isidro runs it all now; he hopes recent move into power pays off.

DMC's subsidiaries include D.M. Consunji Inc., which is engaged in general construction services; DMCI Project Developers Inc., which is engaged in construction business; Semirara Mining Corporation (SMC), which is engaged in the exploration, mining, development and sales of coal resources on Semirara Island in Caluya, Antique; DMCIPower Corporation, which is engaged in the business of power generation that designs, constructs, invest in and operate power plants; and DMCI Mining Corporation, which is engaged in ore and mineral mining and exploration.

#7 George Ty & family

Net Worth: $3.7 Billion
Age: 81, Source Of Wealth: banking

George Ty started Metropolitan Bank & Trust Co. (known as Metrobank, stock code MBT) in his 20s. Mind for math, eye for art: each Metrobank branch was decorated with paintings he chose. Reserved, reclusive and buttoned-up. Gave up chairmanship to son, Arthur, in 2006. Family also has stakes in Toyota Motor Philippines, Philippine AXA Life Insurance.

#8 Family Aboitiz

Net Worth: $3.6 Billion
Source Of Wealth: Diversified

Aboitiz family is a clan of power players, with its Aboitiz Power (AP) mulling expansion into Indonesia. Company generates and distributes power. Rest of fortune largely comes from Aboitiz Equity Ventures (AEV), with investments in businesses like Filipino UnionBank, flour-and-feed producer Pilmico Foods and Aboitiz Land, Inc. The first Aboitizes made money as 19th-century hemp traders. Fortune formerly listed under Enrique (d. 2013) and his nephew Jon Ramon, the current chairman.

#9 Jaime Zobel de Ayala & family

Net Worth: $3.4 Billion
Age: 80, Source Of Wealth: Diversified

The 180-year-old Ayala Corp. (AC) is run by a clan of corporate aristocrats. Modern expansion was started by Jaime's grandfather, who pushed the tribe into banking, real estate and hotels. Patriarch Don Jaime is a renaissance man: Harvard architecture student, world-class photographer, former diplomat. Ran companies like Bank of the Philippine Islands (BPI), which Ayala Corp. still owns. He has handed reins to his children: Jaime II is chairman, Fernando is president and chief operating officer.

The other significant subsidiaries of AC as of December 31, 2012 are Manila Water Company,Inc. (MWC), Ayala Land, Inc. (ALI), Globe Telecom Inc. (GLO), Integrated Micro Electronics Inc., AC Energy Inc. (with investments in the development of conventional as well as solar, wind, and mini-hydro energy sources) and Ayala Automotive Holdings Corp (Honda, Isuzu and Volkswagen Philippines).

#10 Tony Tan Caktiong & family

Net Worth: $2 Billion
Age: 61, Source Of Wealth: fast food, Self Made

Tony Tan Caktiong prospered from selling American-style burgers in the Philippines. His Jollibee Foods Corp (JFC) is nation's largest fast-food joint, with more than 750 restaurants. He started with 2 ice cream parlors he opened in 1975.

In the Philippines, JFC also has, as subsidiaries, Fresh N'Famous Foods, Inc., which develops, operates and franchises quick-service restaurants under the trade names "Chowking"; "Greenwich"; Red Ribbon Bakeshop, Inc., which develops, operates and franchises restaurants under the "Red Ribbon" trade name; Mang Inasal Phils., Inc., which develops, operates and franchises restaurants under the Mang Inasal trade name; and Perf Restaurants, Inc., which franchises restaurants under the "Burger King" trademark in the Philippines.

#12 Lucio and Susan Co

Net Worth: $1.7 Billion
Source Of Wealth: Retailing, Self Made

Couple Susan and Lucio Co struck gold with the Puregold Price Club (PGOLD), known for its hypermarkets. Planning to open smaller stores now, too. Other business interests span gaming, hotels, wine distribution, property, energy.

Puregold acquired a related retail company, Keralla Management Corporation, which operates 6 S&R Membership Shopping Warehouses. It is the only membership store operating in the country. It also acquired Gent Group of Companies operating in 18 Parco Supermarkets

#14 Manuel Villar

Net Worth: $1.5 Billion
Age: 64, Source Of Wealth: Real estate

As a kid, helped mom sell seafood in Manila market. Studied hard, became financial analyst. Saved 10,000 pesos to start company. His publicly traded Starmalls builds what its name suggests: gigantic malls. Another gainer: mansion builder Vista Land & Lifescapes (VLL), run by his son, Paolo. Active in politics. Current senator. One time presidential candidate.

#17 Andrew Gotianun

Net Worth: $955 Million
Age: 86, Source Of Wealth: real estate, Self Made

Andrew Gotianun is the founder, chair of conglomerate Filinvest Development, which owns most of Filinvest Land Inc. (FLI), with interests in real estate, banking (the East West Bank, stock code EW), sugar, hospitality, power. His daughter Josephine runs it all. Among Filinvest's projects, The Beaufort, luxury apartments in towers overlooking golf course.

* Read more of who are included in the list of Forbes Philippines' 50 Richest here.

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