Chile’s Luksic family, one of South America’s richest, saw their fortune jump to $25 billion. Their key move? Investing in global shipping.
In 2011, they invested in the Chilean shipping firm CSAV through their company, Quinenco. Initially, the move sparked skepticism and heavy losses.
Undeterred, the family contributed a $1.2 billion capital boost in 2012. They also negotiated exemptions with lenders.
By 2014, CSAV merged with Germany’s Hapag-Lloyd. Today, CSAV owns 30% of this global shipping giant.
The pandemic greatly benefited the industry. In 2022, Hapag-Lloyd recorded an $18 billion profit. CSAV also saw great gains, logging $5.6 billion in profits last year.
For Quinenco, these earnings constituted over 90% of its net income and 81% of its dividends.
The family owns 83% of Quinenco. In turn, Quinenco holds 66.5% of CSAV. From CSAV’s merger with Hapag-Lloyd, Quinenco has achieved a 322% return.
Additionally, the family has other varied investments. Bloomberg Linea said their wealth nearly doubled in the past five years.
Shipping gains during the pandemic played a big part.
Quinenco’s subsidiary, SM SAAM SA, sold about $1 billion in port assets to Hapag-Lloyd this year.
Founded in 1957, Quinenco initially focused on wooden supports for tunnels. Now, it’s diversified into finance, beverages, and logistics among others.
Today, the family’s most significant asset is a $12 billion stake in Antofagasta.
Background Luksic Family
The Luksic family shows the rewards of long-term investing. Despite initial skepticism, their shipping bet paid off. A pandemic-led shipping surge greatly helped.
Their investment in different sectors is also strategic. It safeguards against market shifts. Selling port assets this year reflects smart timing.
Quinenco’s 322% return since CSAV’s merger with Hapag-Lloyd speaks volumes.
Their tale stresses how a balanced portfolio and clever timing are key to maintaining enduring wealth.
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This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief