If You Invested $1,000 In Microsoft Stock When Bill Gates Left As CEO, Here's How Much You'd Have Now

Founders of companies typically serve as the first Chief Executive Officer of their creation before someone from within the company or from the outside is brought in to lead and potentially push the business in a new direction.

Investors oftentimes will invest in companies that have undergone a management change, which can lead to new focus areas and growth opportunities.

Here’s a look at how Microsoft Corporation MSFT stock has performed since Bill Gates stepped down as CEO.

What Happened: Gates is one of the co-founders of Microsoft and served as the CEO of the company until 2000. Gates also later stepped down from the company’s Board of Directors, ending his ties to the software and technology giant.

When Gates stepped down as CEO, he maintained the Chairman of the Board title and also took on the title of Chief Software Architect for the company he founded. Gates said at the time the new role would help him spend more time on new software technologies.

“It’s an exciting evolution for me and a very good transition for the company,” Gates said.

Steve Ballmer, who was Microsoft’s President, was announced as the replacement for Gates as CEO. Ballmer was hired by Gates in 1980 and became president of the company in 1998.

Gates founded his first company at the age of 15 alongside his friend Paul Allen, who would later co-found Microsoft with him.

Under Gates' leadership as CEO, Microsoft enjoyed years of success and the stock also saw huge returns for investors. The strength of Microsoft stock helped propel Gates to the title of richest person in the world from 1993 to 2007.

Microsoft had its IPO in 1986 at $21 a share, and Gates became a millionaire with 45% ownership of the company.

Gates' ownership in Microsoft has lowered over the years as he has sold off shares to help fund his philanthropic efforts at the Bill and Melinda Gates Foundation.

Related Link: Bill Gates Doesn't Want To Be Rich Anymore 

Investing $1,000 in Microsoft Stock: Shares of Microsoft hit a high of $27.15 on Jan. 13, 2000, when it was announced that Gates had stepped down as CEO of the company.

A $1,000 investment in Microsoft stock at the time could have purchased 36.82 shares. A two-for-one split in 2003 would have turned the investment into 73.64 shares.

The $1,000 investment would be worth $17,751.66 today, based on a price of $241.06 for Microsoft shares at the time of writing.

This represents a return of 1,675.2% since Gates stepped down as CEO. The hypothetical investment would have posted an average annual return of 72.8%.

Investors who bet on the success of the company even with Gates on the sidelines would have been pleasantly rewarded.

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Photo: courtesy of Masaru Kamikura on flickr.