In a time where billionaires are losing bundles of money as the economic down turn squeeze the life out of their fortunes; some billionaires are rebuilding their fortunes in recent bear market rally, one in particular is Ronald Burkle ........Eight months ago, as panic gripped Wall Street, billionaire investor Ronald Burkle waited patiently. Then, on Nov. 24, he pounced, buying up hefty stakes in bookseller Barnes & Noble and grocery chain Whole Foods, two brand names the market had severely punished.
The cases were compelling. Whole Foods shares were down 90% from their 2006 high, yet the company had managed to grow its revenue by 40% since then. Still, with consumers humbled by the ailing economy, many believed high-end grocery stores would be left for dead.
Nonetheless, Burkle's bet--that the companies' underlying financials outweighed common-sense notions about how cash-strapped consumers would behave in the short term--paid off. Since late last year, Whole Foods shares are up 85% while Barnes & Noble stock is up 80%. The value of Burkle's $165 million investment (made via his investment outfit, Yucaipa Cos.) has ballooned to $305 million.
Burkle declined to comment for this story.
Profile : Ronald Burkle
Age: 53Fortune: self made
Source: Investments
Country Of Citizenship: United States
Residence: Los Angeles, California, United States, North America
Industry: Investments
Marital Status: divorced, 3 children
High School, Diploma
Former bag boy founded investment company Yucaipa 1986; made fortune with leveraged buyouts of supermarket chains Fred Meyer, Jurgensen's, Ralph's. Dealmaking ever since. Recent transactions: invested $100 million in Sean (P. Diddy) Combs' Sean John clothing line; sold majority stake in food supplier Golden State Foods to Wetterau Associates, of St. Louis, for $110 million. Also big stake in Pathmark grocery stores. Longtime Democratic fundraiser a close friend of Bill Clinton; former President calls Burkle's 757 private jet "Ron Air."
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