Bill Gates Could Be A Trillionaire Today If He Had 'Diamond-Handed' His Original Microsoft Shares

Microsoft Corp. Co-Founder Bill Gates is celebrated for his monumental role in the tech world and is known as one of the planet's wealthiest people. 

Yet, an intriguing “what-if” scenario arises: Had he “diamond-handed” his Microsoft shares — a term in finance meaning to hold onto assets through market ups and downs — his wealth might have soared to unmatched levels. A resurfaced article from 2021 amplifies this speculation: What if Gates had kept his initial Microsoft stakes? Could he have outpaced today’s wealthiest, like Tesla Inc. CEO Elon Musk and Amazon.com Inc. Founder Jeff Bezos, to become a trillionaire?

The narrative begins with Microsoft’s initial public offering (IPO) in 1986. At that time, Gates held a 49% stake in the company. After the IPO, this reduced slightly to 45%. Fast forward to the present, and Microsoft’s market capitalization stands at approximately $2.805 trillion. Had Gates maintained his 45% stake, it would equate to $1.23 trillion today — a figure that dwarfs the net worths of Musk and Bezos.

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Microsoft’s journey to becoming a trillion-dollar empire is a testament to its resilience and innovation in the tech industry. Gates’s vision and leadership during the formative years were instrumental in this ascent. By 1999, Microsoft had crossed a $500 billion valuation, with Gates still owning about 20% of the company. If he had preserved these shares, they would be valued at over $500 billion today.

However, Gates’s approach to wealth has been markedly different. Today, he holds a 1.38% stake in Microsoft, amounting to 103 million shares. This significant reduction from his initial post-IPO stake indicates a strategic shift in his investment philosophy. Over time, Gates has diversified his portfolio, moving away from a Microsoft-centric wealth concentration. As of November, his net worth is estimated at $116 billion. A substantial part of this comes from his shares in Microsoft, both directly and indirectly, with about 20.28% of his public holdings in Berkshire Hathaway Inc., a conglomerate led by his close friend and fellow billionaire Warren Buffett.

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Gates’s wealth, even though diminished from its potential trillion-dollar height, remains colossal. In 1999, his fortune was almost three times that of Buffett, who was the second-richest person at the time. That year, Gates’s wealth surged past the $100 billion mark, a milestone that Buffett reached much later, with a valuation of about $36 billion in 1999.

Gates’s decision to diversify his investments and reduce his stake in Microsoft over the years reflects a broader trend among the ultra-wealthy to mitigate risk and explore other opportunities. While this strategy may have cost him the title of the world’s first trillionaire, it demonstrates a more balanced approach to wealth management. This decision also paved the way for his extensive philanthropic endeavors, further cementing his legacy not just as a tech mogul but as a global humanitarian.

Reflecting on the potential of what might have been, it’s evident that Gates’s impact on the world extends beyond the confines of Microsoft and the hypotheticals of his net worth. His evolution from a tech visionary to a diversified investor and philanthropist remains a testament to the multifaceted nature of his influence. 

Gates has not only shaped the technology industry but also made significant strides in global health and education through his philanthropy. His journey exemplifies how a person's impact can be profound and multifarious, reaching beyond mere financial success to leave a lasting imprint on the world in various sectors.

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