Richest 250: Iron ore, tech and e-commerce stocks win from COVID

Markets plunged in March last year, but it has been smooth sailing ever since for some of the biggest names in Australian business. But who did the best?

Some rich-listers thrived during the pandemic, others not so much.

A year ago, COVID-19 was about to shut down the world and investment veteran David Hains was among those to fear the worst.

Billionaire Hains has his family fortune invested in markets around the world and told The Australian in March 2020: “This is certainly looking like it could be the worst downturn I have seen because it can’t be fixed simply with money.”

Fortunes on The List — Australia’s Richest 250 looked set to plunge as the ASX200 hit an eight-year low as it ended the March 2020 quarter down about 24 per cent.

But the worst has not come to pass. Instead, e-commerce stocks surged in value as workers shopped from home and a seemingly endless stream of packages were delivered to their door.

Iron ore prices flew, making mining stocks a hot commodity. Software companies that had traded quietly on the ASX for years suddenly became market darlings as spare rooms were turned into home offices.

When the 2021 edition of The List is published in full in The Weekend Australian on Saturday, total wealth will be up considerably given the All Ordinaries Index is up about 25 per cent since last year.

Here are the winners and losers from The List in the past COVID-19-affected 12 months.

BEST

Afterpay (+370 per cent): At the age of 29, co-founder Nick Molnar has joined the billionaire ranks thanks to the stunning rise of the ‘‘buy now, pay later’’ sensation. He and Anthony Eisen are big movers on The List, despite some volatility in its share price in the last couple of months.

Afterpay co-founder Nick Molnar. Picture: John Feder

Seven West Media (+303 per cent): It was coming off a low base but there’s life in the owner of the Seven free-to-air television network and other media assets. Billionaire Kerry Stokes chairs the group and owns it via his ASX-listed Seven Group Holdings empire, which is up almost 60 per cent in a year itself.

Kogan.com (+228 per cent): Ruslan Kogan vaults onto The List this year for the first time, thanks to the success of his epony­mous e-commerce business that has enjoyed a good pandemic. Kogan says the online retail revolution was already happening, but COVID accelerated the trend and he has taken advantage.

PYC Therapeutics (+208 per cent): Alan Tribe is best known for bringing Ikea to Western Australia and South Australia. But having sold the franchises back to the Swedish retail giant he has found success with biotech play PYC, only three years after joining its board and becoming chairman. PYC is expanding to the US.

Mineral Resources (+168 per cent): Billionaire Chris Ellison shuns publicity, but has built a mining success story.

Mineral Resources shipped a record 7.9 million tonnes of iron ore in the first half of the 2020 financial year, and Ellison has floated the prospect of selling down some of its assets.

Pro Medicus (+158 per cent): Founders Sam Hupert and Anthony Hall oversee a strongly performing business that develops software systems for radiologists to look at reports and large image files.

Netwealth (+139 per cent): Michael Heine and son Matt had benefited from the big banks turning their backs on wealth management, as their super and wealth management platform keeps rising in value.

Eagers director and Sydney Roosters chairman Nick Politis. Picture: Brett Costello

Eagers Automotive (+126 per cent): Billionaire Nick Politis has benefited from a comeback in car sales, which has boosted the share price of Eagers.

Pact (+115 per cent): Raphael “Ruffy” Geminder has overseen a comeback for the plastics and packaging business, which was falling in value before COVID.

Lovisa (+115 per cent): The jewellery retail business has delivered better than expected results for billionaire Brett Blundy, despite shopping mall foot traffic being down.

Dicker Data (+111 per cent): David Dicker is enjoying the best of times in three decades for his Dicker Data, which sells PCs and other hardware and software for some of the biggest names in the computer industry.

Fortescue Metals Group (+105 per cent): Billionaire Andrew Forrest has added more than $10bn to his fortune in the past year as iron ore prices soared.

WORST

Freedom Foods (-30 per cent): Tony Perich and his family struck trouble with the food and beverage business, which suspended its shares from trading after a $590m writedown of assets.

Son Michael Perich is now in charge.

Next Science (-25 per cent): Property magnate Lang Walker is forging ahead with some huge commercial projects, but his shares in the chronic infection specialist biotech fell this year.

TPG Telecom (-22 per cent): Billionaire David Teoh engineered the big telco merger with Vodafone’s Australian business, but TPG shares have fallen.

VGI Partners founder Rob Luciano. Picture: Jane Dempster

VGI Partners (-16 per cent): Hedge fund manager Rob Luciano described the performance of his VGI as “unacceptable” last year when it failed to pick the market comeback after its March 2020 lows.

Ecofibre (-12 per cent): Barry Lambert has seen his shares in the industrial hemp business fall, but has high hopes for its future selling products in the US.

The full 2021 edition of The List — Australia’s Richest 250 is published in The Weekend Australian on Saturday March 21 and at theaustralian.com.au/topics/richest-250