Diversification: how Bill Gates manage his money
At the moment, Bill Gates' net worth is about 93 billion.
Gates accumulated his ginormous wealth initially from Microsoft, but later he gradually put most of his money into a well diversified portfolio managed by his own investment firm: Cascade Investment LLC. He now only owns less than 2% MSFT, less than Steve Ballmer according to Forbes.
So, how much Bill Gates would worth if he didn't sell ANY of his Microsoft stocks ?
MSFT is trading at 100$ at the moment, and has a market cap of $776 billion. After Microsoft IPO in 1986, Gates' ownership was 45%. If he didn't sell any, his net worth should be about 350 billion dollars.
.
.
.
.
.
.
.
.
That's about 4 times of his current wealth......
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
Bill Gates would probably have been richer had he not sold some of his Microsoft shares. But diversification is one rule that most investors follow.
It's a good thing because it cushions your entire investment portfolio.
correct. this is just a joke, not an investment advice.