Considering that the majority of home computers will use some iteration of Windows, it’s likely that you will be familiar with Microsoft and the gargantuan amount of wealth they have at their disposal. How much of that money does Bill Gates see?
Bill Gates makes an estimate of $32 million a day, and $11 billion a year, thanks to his software and technology company Microsoft. Microsoft owns a significant share in the operating system marketplace, as well as having other revenue streams.
Even when they were “only” providing the de facto choice in the operating system for the average home user, Microsoft was already flying high when it came to their finances. Since then, they have branched out into multiple other areas of technology, including gaming and mobile devices.
What was the trajectory that led Gates to become one of the world’s wealthiest men?
Gates’ Wealth During the Early Years
A far cry away from ever becoming the juggernaut that it eventually came to be, Microsoft had some relatively humble beginnings, though still with great aspirations. Those early days wouldn’t see Gates moving straight into his own office destined for greatness, however.
Instead, they saw him working out of his garage, despite the fact that he had already landed what many today may consider a serious job opportunity. This job opportunity was the programming and selling of an interpreter called BASIC, one that was first developed and sold to the company that had developed the Altair computer.
Although they weren’t yet raking in the millions or moving into their own office right off the bat, they did rake in some healthy revenue numbers in those early days selling their BASIC interpreter. It was going so well in fact, that Gates decided to simply quit Harvard so that he and co-founder Paul Allen could focus on Microsoft.
Evidently, it was a good decision, with the company roster becoming more fleshed out with talent, the company managing to get their own office, and the profits looking flush with a healthy amount of new money, all $22,000 of it.
The First Millions
With Microsoft and Gates looking set to become a seriously major player in the software industry, and the company already able to generate more than enough profit to stay afloat, many of the employees were being given stock options.
If you were smart enough to take some of those stock options then you were going to be holding a celebration when Gates finally took Microsoft public, making an IPO of around $21 per share.
Although the company itself was already powering ahead in sales and success, generating millions thanks to their expansion into developing operating systems, Gates wouldn’t see his first tidal wave of wealth until the initial IPO.
This essentially made Gates a millionaire overnight, and not just a couple of million either. Seeing as how he was the CEO of Microsoft and owned almost half of the company’s shares, that IPO put his wealth into a very comfortable territory of hundreds of millions of dollars.
Microsoft’s Financial Growth
With the new IPO and the share price of Microsoft growing steadily, one success after another and keeping a consistently hands-on and hard-working approach to the running of the business led Gates to a steady ascension of the world’s wealthiest people.
This allowed him to become the world’s youngest billionaire, all at the age of 31. If that accolade wasn’t enough of an inspiration, he would also be the world’s richest man before he was 40 years old, a feat that has yet to be replicated.
The value of Microsoft’s stock and Gates’ wealth in turn has continued to grow over the years, showing no signs of slowing down or stopping.
How Does Gates Spend That Money?
Gates has consistently been a careful and thoughtful spender with his money, even when he first hit the jackpot with his IPO he was wary of wastefully throwing away money on frivolities. Instead, he chose to spend it on sensible investments and paying back owed money.
Since then, Gates has spent a significant amount of his overwhelming wealth funding all manners of philanthropic projects and donating money to charities. Gates has even begun his own foundation, together with wife Melinda, to the aim of continuing his charitable work.