Bill Gates, the co-founder of Microsoft, has a net worth of $156 billion as of August 2024, making him one of the wealthiest individuals in the world. His wealth, however, is not solely derived from Microsoft.
While Microsoft still plays a role in his fortune, Gates’ diversified investments through his firm Cascade Investments account for the bulk of his fortune today.
Early Life and Microsoft Beginnings
William Henry Gates III was born on October 28, 1955, in Seattle, Washington. Gates developed an early interest in computers and programming, learning to code at the age of 13.
In 1975, he and his childhood friend Paul Allen founded Microsoft, initially writing software for the Altair 8800 microcomputer.
By 1980, Microsoft had secured a major deal with IBM to provide an operating system (MS-DOS), which laid the foundation for the company’s future success.
The company went public in 1986, and Gates’ 45% stake in Microsoft made him an instant billionaire.
Growth of Microsoft and Peak Wealth
At the time of Microsoft’s IPO in 1986, Gates’ net worth was approximately $350 million.
Within just a few years, the value of Microsoft’s stock skyrocketed, and Gates became the world’s youngest self-made billionaire by the age of 31 in 1987.
Microsoft’s success continued throughout the 1990s, particularly with the release of Windows 95, which significantly increased the company’s global footprint.
By 1999, Gates’ fortune peaked at $85 billion, a sum that, adjusted for inflation, would be worth over $150 billion today.
Despite his initial massive stake in Microsoft, Gates began reducing his holdings in the company over the years.
By 2000, he had stepped down from his role as CEO, succeeded by Steve Ballmer, and began focusing more on philanthropy.
He continued to make a significant income from Microsoft stock sales, dividends, and investments.
Today, Gates owns about 1.3% of Microsoft, which accounts for roughly $38 billion of his fortune.
He receives around $309 million annually in dividends from Microsoft, but it’s his other investments that make up the vast majority of his wealth.
Cascade Investments
After accumulating substantial wealth from Microsoft, Gates transitioned to running Cascade Investments, a private investment vehicle that manages an extensive portfolio of assets.
Cascade has investments in a wide variety of industries, including technology, real estate, energy, and agriculture.
Some of Cascade’s most significant holdings include:
- Farmland: Gates owns the largest private collection of farmland in the United States, with approximately 270,000 acres under his control. This investment has been highly lucrative, especially as it has counterbalanced the volatility of the stock market.
- Berkshire Hathaway: Gates holds a significant stake in Berkshire Hathaway, the conglomerate run by Warren Buffett, which is one of the largest portions of his wealth. Cascade’s investments also extend to companies like Canadian National Railway, Republic Services, Waste Management, and Ecolab.
- Four Seasons Hotels: In 2007, Gates entered into a partnership with Saudi Prince Alwaleed bin Talal to acquire a majority stake in the luxury hotel chain, Four Seasons Hotels and Resorts. In 2021, Cascade purchased Prince Alwaleed’s stake for $2.21 billion, increasing Gates’ ownership to 71.3%.
Philanthropy and the Gates Foundation
In addition to his business ventures, Gates has become known for his immense charitable contributions.
Along with his then-wife Melinda Gates, he established the Bill & Melinda Gates Foundation in 2000, which has become one of the largest private philanthropic foundations in the world.
The foundation focuses on global health, education, and poverty alleviation, with the goal of reducing inequities around the world.
Gates has pledged to donate 99.96% of his wealth to charity by the time of his death.
In 2010, Gates and Buffett launched the Giving Pledge, a commitment by the world’s richest individuals to donate at least half of their wealth to charitable causes.
Personal Life and Properties
Gates’ personal life has also attracted attention, particularly his stunning collection of real estate. In 1988, Gates purchased a 66,000-square-foot mansion on the shores of Lake Washington in Medina, Washington, known as Xanadu 2.0.
The home cost an estimated $63 million to build, and it is packed with cutting-edge technology, including 52 miles of optical cables and a 24-screen video wall.
The property is surrounded by extensive grounds, and Gates reportedly spent $14 million acquiring additional properties to ensure his privacy.
In addition to Xanadu 2.0, Gates owns multiple properties across the United States:
- Rancho Santa Fe, California: In 2014, Gates bought a 228-acre horse ranch near San Diego for $18 million.
- Del Mar, California: In 2020, he bought an oceanfront property in Del Mar for $43 million.
- Wellington, Florida: Gates purchased a horse ranch in Florida in 2013 for $8.7 million.
- Cody, Wyoming: He also owns a 492-acre ranch once owned by Buffalo Bill Cody.
Bill Gates’ Wealth Over Time
Throughout the years, Bill Gates’ wealth has grown exponentially. Below is a snapshot of how his net worth has evolved:
- 1986: $350 million (following Microsoft’s IPO)
- 1987: $1.25 billion (Gates becomes the youngest self-made billionaire)
- 1995: $14.8 billion (Windows 95 launch drives Microsoft’s growth)
- 1999: $85 billion (tech boom boosts his fortune)
- 2000: $63 billion (tech bubble burst reduces wealth)
- 2008: $58 billion (Gates steps back from Microsoft)
- 2020: $110 billion
- 2024: $156 billion (despite selling Microsoft stock, Gates has grown his wealth through investments)
Personal Giving
Gates has said that he intends to leave only $10 million to each of his three children, with the bulk of his wealth going to philanthropy.
This is in line with his public commitment to give away the vast majority of his wealth during his lifetime.
Gates has donated more than $50 billion to charity, much of it through the Bill & Melinda Gates Foundation, which has supported global health initiatives, educational reforms, and efforts to combat poverty.
