Lessons from Prince Alwaleed bin Talal Alsaud

Prince Alwaleed Bin Talal Alsaud, a prominent member of the Saudi royal family, is a globally recognized investor, business magnate, and philanthropist. Through his investment firm, Kingdom Holding Company, he has built a multi-billion dollar empire with stakes in a wide array of international companies. His business acumen and philanthropic endeavors have been the subject of extensive media coverage, offering numerous insights into his philosophies on investment, success, and social responsibility.

On Business and Investment Strategy

On Excellence: "If I'm going to do something, I do it spectacularly or I don't do it at all." [1][2]
The 3+3+1 Philosophy: At a macro level, business requires a vision, a strategy to implement that vision, and a plan to execute the strategy. At the micro level, one needs initiative, ambition, and the willingness to take calculated risks. The "+1" represents professional corporate governance. [3]
Investing in Brands: He seeks out "irreplaceable brands in their own field," focusing on companies with a strong global presence or the potential to achieve it. [4][5]
Value Investing: Prince Alwaleed is known as a value investor, looking for assets trading below their intrinsic worth and often investing in companies that are undervalued or facing temporary difficulties. [6]
Long-Term Perspective: "We're getting hurt, but I'm a long-term investor." [4][7]
Contrarian Approach: He often invests when there is fear in the market. "I was investing while others thought the market would crash." [5]
Identifying Undervalued Companies: A key part of his strategy is to identify undervalued companies with the potential for at least 20% growth within a five to ten-year horizon. [5]
Diversification: His investment portfolio through Kingdom Holding is highly diversified across various sectors and geographies, including financial services, real estate, technology, and hospitality. [4][5]
Strategic Patience: After investing, he is known to hold on to his stakes even if the market gets bumpy, demonstrating a patient and long-term approach. [5]
Active Management in Select Cases: While often a passive investor, he is willing to take a more active role in management when he believes it is necessary to drive growth and success. [8]
Monetization Strategy: He believes in taking a certain percentage of a company public, perhaps 10% or 20%, while retaining the balance to benefit from market valuation. [4]
Irreplaceable Assets: Some assets, like the Hotel George V in Paris or the Savoy in London, are considered unique and irreplaceable, and his strategy is to buy and hold them indefinitely. [4]
Seizing Opportunities in Crisis: His significant investment in Citicorp in the early 1990s, when the bank was struggling, is a prime example of his strategy of capitalizing on opportunities during times of financial distress. [4]
Focus on High-Growth Sectors: "I want to concentrate on communications, technology, entertainment and news. This is the future." [8]
Global Mindset: "My wheels are running. My investments are local, regional and international." [7][9]
The Importance of Management: "The lesson is that, No. 1, this management has to be at the highest class possible. No. 2, they have to have a succession plan." [7]
No Dependence on a Single Person: "No company should depend on one person no matter how that person is smart or genius, whether it's Apple or News Corp, or Citibank or any other company in the world." [10]
Calculated Risk-Taking: He believes that "guts and carefully-studied risks" are two of the most important factors for any success. [3]
Market Psychology: "Just like sheep, you have people going in the same direction [that is, panicking]. But I think the stock market is going to go up and up." [8]
Investing in Market Leaders: A core part of his strategy is to invest in blue-chip companies that are considered "market leaders in their field." [11]

The Privilege of Giving: "Giving back to society is not just a responsibility; it is a privilege." [1]
Success Defined by Giving: "Success is not about how much you have, but about how much you give." [1]
Philanthropy Without Boundaries: His charitable work through Alwaleed Philanthropies is not restricted by national borders, race, or religion. [2][12]
A Responsibility to Improve the World: "I founded Alwaleed Philanthropies because I strongly believe we all have a responsibility to do what we can do to improve our world. It's a belief that is central to my faith, my culture and values." [2][13]
Empowering Women and Youth: A key focus of his philanthropy is on empowering women and youth to help them achieve their full potential. [2][13]
Building Bridges Between Cultures: He has endowed several academic centers at universities like Georgetown, Harvard, and Cambridge to foster understanding between the Islamic world and the West. [13][14]
Disaster Relief: Providing aid during disasters is a cornerstone of his philanthropic activities. [2][13]
Community Development: His foundations work on developing communities, particularly in the areas of health, education, and infrastructure. [2][13]
A Lifelong Commitment: His philanthropic efforts have spanned over four decades, supporting thousands of projects in over 189 countries. [2]
Teaching to Fish: "My strategy is to feed them the fish until they are able to fish, and then they go fishing." [9][15]

On Personal Philosophy and Life

The Power of Belief: "You must have a strong belief in yourself. It is the foundation of all successful people." [1]
Embracing Failure: "The path to success is paved with failures. Learn from them and keep going." [1]
Avoiding Complacency: "Complacency is the enemy of progress." [1]
The Importance of Serenity: "I am happy, but no one can always be happy. But there's a level above happiness – serenity." [6]
Simplicity in a Complex World: "Life is not that difficult but you have to take the simplified approach." [6]
The Value of Hard Work: His reputation as a foremost investor is the result of "hard work, diligent research and the courage to accept the reasonable risk." [16]
Staying Informed: "Nowadays, anyone who cannot speak English and is incapable of using the Internet is regarded as backward." [7][9]
Humility and Connection: In an interaction with a Saudi citizen, he was quoted as saying, "I am a Saudi citizen like you. Do not call me prince." [3]
The Journey of Life: When asked about the endpoint of his journey, his former wife, Princess Ameerah, speaking of their shared belief, said, "it's a journey there's no end point... it's a challenge." [17]
A Fearless Approach: His investment style is described as a "fearless investment approach, rooted in meticulous evaluation by a top investment team." [16]

On Global and Regional Issues

A Call for a Balanced Stance: "I believe the government of the United States should re-examine its policies in the Middle East and adopt a more balanced stance toward the Palestinian cause." [8][9]
Fighting Extremism with Reason: "Most governments are pragmatic, most people are logical. There are pockets of extremism in Israel, in the U.S. and in the Muslim world. But we have to fight them with reason, with logic and with compassion." [4]
Respect for International Law: On UN resolutions, he stated, "We can't just pick and choose where we impose and accept the U.N. resolution and don't accept them." [4]
On the Arab Spring: "I am not against the legitimate demands of the Arab people and consider them rightful. I am, however, against the way these revolutions were managed." [3]
The Importance of Women's Rights: "I am trying to be fair to women because their rights are still not fully recognized in our country." [3]
Concerns about Saudi Unemployment: He has expressed concerns about the high number of expatriate workers in Saudi Arabia while many Saudis remain unemployed, calling for more vocational training and active measures to integrate citizens into the workforce. [6]
On the Future of Saudi Arabia: He has emphasized the stability of the social and political contract in Saudi Arabia. [9]
A Global Citizen: His investments and philanthropic activities demonstrate a deep engagement with global affairs and a desire to foster international understanding. [12][14]
The Role of Media: His investment in Rotana, a major media company in the Middle East, underscores his belief in the power and influence of media. [7][9]
A Bridge Between East and West: A recurring theme in his public statements and actions is the desire to act as a bridge between the Arab world and the West. [14]

Learn more:

Lessons from Prince Alwaleed bin Talal Alsaud

On Business and Investment Strategy

On Personal Philosophy and Life

On Global and Regional Issues

Written by Antoine Buteau

Lessons from Bret Victor

Lessons from Ernest Garcia II and III

Lessons from Prince Alwaleed bin Talal Alsaud

On Business and Investment Strategy

On Philanthropy and Social Responsibility

On Personal Philosophy and Life

On Global and Regional Issues

Written by Antoine Buteau

Lessons from Bret Victor

Lessons from Ernest Garcia II and III