Nathan Tinkler falls off rich list

From $1.13 billion to less than $18 million in two years.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Ex-Whitehaven Coal (ASX: WHC) major shareholder and one-time billionaire Nathan Tinkler has suffered a dramatic fall from the top of the BRW Young Rich List. Having topped the list in 2011 with an estimated net worth of $1.13 billion, Mr Tinkler has sensationally fallen completely off the list in 2013, failing to meet this year's cutoff of $18 million.

Mr Tinkler sprung into the list in 2008 after having made an estimated $440 million in the transaction of a mine lease, which was purchased using a large loan and subsequently sold to Macarthur Coal (ASX: MCC). In 2009 he secured loans to purchase the Maules Creek mine through his company Aston Resources, which subsequently floated on the ASX and merged with Whitehaven Coal. Mr Tinkler's highly leveraged 19% stake in Whitehaven ultimately brought his downfall as the slowing of the mining boom punished the company's share price and forced creditors to re-coup some of their losses.

In recent months Mr Tinkler had one of his last remaining assets seized, speculative miner Aston Metals. In addition, he has been forced to sell his private properties and his numerous boats and planes purchased in previous years. Amazingly, averaged out over the two years, his worth has declined by an average of $10 million per week.

The Rich List, which features 100 of the wealthiest self-made Australians under 40 years of age, is this year dominated by people in the IT and sports industries, making up 46 places. The list included 25 debutants and retired MotoGP rider Casey Stoner is the youngest person on the list at age 27, with an estimated worth of $20 million.

Foolish takeaway

If you end up with a net worth of $1.13 billion after a couple of years' work, it might be worth giving Mr Tinkler a call to see if there were any key lessons learnt. Aside from that, Mr Tinkler was largely brought down by an overexposure to the mining, and specifically coal, sector and was highly leveraged. Investors should take note that diversification among sectors and asset classes is important for growing long term wealth and that leverage should only be used in moderation.

Interested in our #1 dividend-paying stock? Discover The Motley Fool's favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of "The Motley Fool's Top Dividend Stock for 2013-2014."

More reading

Motley Fool contributor Andrew Mudie does not own shares in any of the companies mentioned.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »