Al-Waleed bin Talal

Prince Al-Waleed bin Talal is a Saudi Arabian royal, billionaire businessman, and one of the world's most prominent and successful international investors. Often dubbed the “Warren Buffett of Arabia,” he built his fortune through his primary investment vehicle, the Kingdom Holding Company (KHC). While born into royalty, Al-Waleed didn't rely on oil wealth; instead, he started with a modest loan and a gift from his father, which he parlayed into a global empire. His investment philosophy is a fascinating blend of deep value investing principles and a bold, contrarian investing spirit. He seeks out high-quality, often globally recognized, companies that are temporarily undervalued, investing with a long-term perspective. His legendary knack for identifying bargains in times of crisis and his focus on strong brands have made him a case study for investors looking to build wealth by betting on enduring quality.

The nickname isn't just for show. Prince Al-Waleed's investment strategy shares many core tenets with the Oracle of Omaha, making his approach particularly relevant for followers of value investing. He isn't a passive investor; he's an active, engaged business owner who seeks to understand the fundamentals of every company he buys into.

Like Buffett, Al-Waleed isn't a trader chasing short-term market fluctuations. He is a quintessential long-term investor. His strategy revolves around identifying world-class companies with sustainable competitive advantages—what value investors call an economic moat—and buying them at a reasonable or, ideally, a bargain price. He then holds these investments for years, and sometimes decades, allowing their intrinsic value to compound over time. This patient approach requires discipline and a deep conviction in the underlying quality of the businesses in his portfolio.

Perhaps Al-Waleed's most famous trait is his willingness to go against the grain. He thrives on market panic, viewing widespread fear as a prime opportunity to acquire premium assets at a discount. While others are selling, he's often buying. His most celebrated investments were made when companies or entire industries were facing immense pressure and uncertainty. This requires not just capital, but immense courage and an independent mindset, refusing to be swayed by the “herd mentality” that so often grips the market.

Al-Waleed's investments span across various sectors, from banking and technology to luxury hospitality and media, but they all share a common thread: strong, often iconic, brand names with global reach.

In 1991, Citicorp (the predecessor to Citigroup) was in deep trouble, facing massive losses from real estate loans and pressure from regulators. Wall Street had all but given up on the banking giant. Seeing a fundamentally strong franchise buried under short-term problems, Al-Waleed made a bold move, investing $590 million. He recognized the bank's irreplaceable global network and brand power. His contrarian bet paid off spectacularly. Within a few years, the bank had recovered, and his stake grew to be worth billions, cementing his reputation as a master investor. This deal remains a textbook example of buying a great company during a period of maximum pessimism.

Beyond banking, Al-Waleed's portfolio has featured a “who's who” of leading global companies. His strategy is to find these best-in-class businesses and become a significant, long-term shareholder. Some of his notable investments have included:

• Technology: A significant early stake in Apple and a large position in Twitter (now X).
• Hospitality: Controlling interests or major stakes in luxury hotel chains like Four Seasons Hotels and Resorts, Mövenpick, and the Plaza Hotel in New York.
• Media & Entertainment: Investments in companies like News Corp and Time Warner.

You don't need a royal title or billions of dollars to apply Prince Al-Waleed's core principles to your own investment strategy. His success offers several timeless lessons:

1. Look for Quality on Sale: Don't be scared off by negative headlines. A great company facing temporary headwinds can be the investment opportunity of a lifetime. Do your homework to distinguish temporary problems from permanent ones.
2. Think Globally: Don't limit your search for great companies to your home country. The best brands and businesses often have a global footprint.
3. Patience is a Virtue: Real wealth is built by holding great assets over the long term, not by frantic trading. Buy with the intention of holding for years, and let the power of compounding do the heavy lifting.
4. Believe in Brands: A strong brand is a powerful economic moat. Companies that customers trust and recognize have a durable advantage that can lead to decades of profitability.