Brazilian billionaire Eike Batista is working overtime to diversify his company. Diversity is the key to the success of his holding company EBX group, which encompasses many subsidiary companies. EBX group subsidiaries include MMX mining and metal, MPX Energia which produces electricity, OGX oil and natural gas exploration, and MPX coal mining.
Eike Batista has more recent and diverse companies under EBX group as well. LLX logistics and ports, OSX Ship building and oil service, MD.X medical center in Rio, and REX real estate venture away from his tradition of mining and energy. Other diverse holdings of EBX group include Pink Fleet which is involved in social events in Rio de Janerio, Mr. Lam Chinese Restaurant, Beaux skin care, and the restoration of the Hotel Gloria which will be called the Gloria Palace Hotel.
Billionaire Eike Batista knows the value of diversification, but occasionally his expansive habits unnerve stock holders. In March of 2010 Stockholders of the EBX group subsidiary OSX were upset by the sale of 3.06 million common shares causing the value per share to drop. Stocks of MMX dropped when it was announced that MMX would purchase Port X for $2.24 billion dollars. Apparently sometimes stock holders have trouble wrapping their minds around Billionaire Eike Batista style expansions and the stock market boat rocking he doesn’t seem to shy away from. The value of diversification seems to escape many investors who, while they have hefty and diverse stock portfolios themselves seem to get fearful when companies diversify and expand rapidly.
EBX group subsidiary MPX coal mining has plans to diversify to renewable energy including solar energy, but hopefully those stock holders will understand how profitable this could be. The recent purchase of ports including Port X is also understandable and a very sound choice. Investing in logistics and infrastructure in growing countries like Brazil is always a great investment. When countries grow rapidly or even when successful businesses try to grow they must often invest in the infrastructure of the area.
One thing is certain, Eike Batista is committed to growth. Among the goals of this billionaire are to become the wealthiest billionaire in the world. Currently billionaire Eike Batista is the eighth richest man in the world, but things are definitely looking up. Eike Batista has just struck oil again. OGX has discovered another vast store of oil, 116 meters thick. Previously OGX estimated its potential resources at 6.7 billion barrels but many more discoveries of heavy crude oil have been made since. Eike Batista will continue to take risks that will logically pay off, diversify into more and more areas and promote the growth of EBX group with gusto. Those stock holders who do not understand his methods will ultimately loose out.