Bill Gates is one of the few names that come to mind whenever globally-rich individuals are mentioned. His wealth status is emulated by many though as futile dreams. Such amount of fortune could be arrived at in plenty of ways, but how did Bill Gates arrive at his? For the largest part of his life, Bill Gates has been in constant money moves in an attempt to add a coin to his pockets. His current financial position is a result of continuous investments and meticulously laid financial plans. Below is a detailed explanation of 10 Ways Bill Gates Built his Fortune.
10 Ways Bill Gates Built His Fortune
1. He Invested in The Stock Market
Despite having a high risk; Bill Gates is broadly renowned for his huge investment in the stock market. More a fact, more than half of his holdings are in the stock market. His five top investments are all in the stock market, including Berkshire Hathaway, where he has 37 million shares. This contributes to his steady income stream at an interest.
2. He is an Avid Risk Taker
It is often taught that a good business plan requires minimal or no risk. Bill Gates, however, was not deterred by the fear of risks. He even risked his fate by choosing to quit Harvard University in order to engage himself in his own plans.
Most of his financial ventures have been a success. His active involvement in the not-so-predictable stock market adds to this fact about him. Perhaps it is mere luck, or perhaps he is too skeptical about his financial ventures.
3. He Makes Upright Partner Choices
It is often thought that your friends are a clear depiction of you. In line with this, Bill gates credit his success to the friends he made while studying at Harvard University. His friend, Allen, was also integral to his success by partnering with Bill to create Microsoft.
His 1979 choice of IBM as a business partner also facilitated market outreach and product line extension of Microsoft office products.
4. He received a good education
Even though he dropped out of Harvard University, he gives credit to the time he spent there. He also studied in a good private school, which helped him gain knowledge that later helped him pursue greatness.
5. He Invested In giving
It is a common saying that one receives what he gives; Bill Gates’s wealth could be a result of his philanthropist nature. Recently, he has been paying more attention to giving out funds instead of seeking more. Bill Gates and his (then) wife Melinda Gates are among the co-founders of the Giving Pledge campaign that offers a platform where wealthy individuals are able to assist the less fortunate members of society.
Helping the poor does not necessitate returns as an implication, but philanthropy has for long been an easy way to avoid taxes. Avoidance of taxes directly implies less outflow of income and perhaps explains better why giving has helped Bill Gates in wealth gain.
6. Invested in knowledge
Gates has always been steadfast in seeking quench to his thirst for knowledge. His knowledge of coding is what helped him to create a revolutionized world through creating Microsoft. He also has a brown knowledge endowment in the financial field. This helps him in making financial plans.
7. Through Publication of Microsoft
Microsoft was worth 140 million dollars in 1985. They shifted their headquarters to Redmond, WA, and allowed the public to own shares of Microsoft in the next year. They valued a share at 28 dollars, Bill gates being the largest shareholder owning 11 million shares.
Barely a decade later, Bill Gates topped the list as the world’s richest man, his net worth being valued at a stunning 12.9 billion dollars. Publication of Microsoft office was hence a plan gone right for Bill Gates as the (then) CEO of Microsoft.
8. He is financially Cautious
Despite being an avid risk-taker, Bill Gates is still one of the most cautious people when it comes to finances and investment. He had put aside a huge money amount to act as a cushion for Microsoft in case of any financial crisis. This precautionary measure helped Microsoft withstand the financial cycles and hence helped him build his fortune.
9. He Invests in People
Microsoft helped Bill Gates rise to and maintain his position in global wealth fame. However, his fortune continued growing beyond his departure as Microsoft’s CEO in 2000. He arrived at this continuous increase through continuous investment. However, he does not make individual investment choices. Since 1994, Michael Larson has been his investment manager, and since 1995, he has helped him compound his investments at 11% annually.
10. He Takes Chances
Bill Gates wasn’t from a background that can be considered wealthy. However, He wasn’t from a humble background, his father being a successful lawyer. He was sent to a private secondary school, and there, he started learning about coding. He also took his chance at the Lakeside private school to make friends with Paul Allen, who later became his long-term business partner.
When he read about the oncoming kick-off of personal computing, he immediately resolved and started working on software that would power the personal computers. This was the start of his fortune by designing Microsoft.
Bill gates remain one of the wealthiest people in the world yet remains modest in all his dealings. The choice to remain simple also reduces the outflow of finances hence enabling him to maintain his wealth status. This and the above-mentioned are ways in which Bill gates built his fortune.