Steve Ballmer

And they needed to for the reason that they had been granting so many stock options from that little option pool to employees that they were going to blow the SEC's 500 shareholder cap by, they projected, 1987. So they wanted to go public on their own terms in 86, not when they sort of had to by SEC rules.

Maybe. In this era, especially. Maybe. Yeah. I don't know. I'd agree with you if you had a bunch of short-term capital interests that owned your company. But if it's all founder-owned, there are great large private companies in the world. Yeah, fair, true. Coke Industries is a trusted company by a whole bunch of their customers. Cargill is even bigger than that.

Maybe. In this era, especially. Maybe. Yeah. I don't know. I'd agree with you if you had a bunch of short-term capital interests that owned your company. But if it's all founder-owned, there are great large private companies in the world. Yeah, fair, true. Coke Industries is a trusted company by a whole bunch of their customers. Cargill is even bigger than that.

There's a bunch of European industrial and shipping companies. Rolex. There are privately held big important companies in the world.

There's a bunch of European industrial and shipping companies. Rolex. There are privately held big important companies in the world.

That's true. That's very fair. And especially getting to the stage that they eventually got to being the trusted partner to governments around the free world. That requires being a public company.

That's true. That's very fair. And especially getting to the stage that they eventually got to being the trusted partner to governments around the free world. That requires being a public company.

that has like unique economic conditions that have never existed before to create these magical businesses you could never fathom before this new technology thing existed. It's an impossible thing to wish for. Like it may never happen again. We may never get another Google either.

that has like unique economic conditions that have never existed before to create these magical businesses you could never fathom before this new technology thing existed. It's an impossible thing to wish for. Like it may never happen again. We may never get another Google either.

But how many things can you collapse to zero? I think that's the question. With Microsoft, they were able to collapse their marginal cost to zero, but they still had distribution costs. And then Google collapsed distribution costs to zero with the internet. So what's a big cost that a company has now? Maybe AI will collapse... You know, you no longer need 50,000 employees.

But how many things can you collapse to zero? I think that's the question. With Microsoft, they were able to collapse their marginal cost to zero, but they still had distribution costs. And then Google collapsed distribution costs to zero with the internet. So what's a big cost that a company has now? Maybe AI will collapse... You know, you no longer need 50,000 employees.

You can have five employees. Maybe it can collapse that to zero. But you need something of that scale, which is like, where does a company spend most of its money that suddenly it can spend no money on?

You can have five employees. Maybe it can collapse that to zero. But you need something of that scale, which is like, where does a company spend most of its money that suddenly it can spend no money on?

I suppose, actually, it is on the human capital. You just look at big, successful companies and look at what they spend money on, and those are the candidates.

I suppose, actually, it is on the human capital. You just look at big, successful companies and look at what they spend money on, and those are the candidates.

Yep. Other fun things on the IPO. Do you know who IPO'd the day before Microsoft did? Ooh, no. Oracle. Aha. And Oracle had a nice pop, which actually helped Microsoft price a little bit higher in their IPO. That is another episode we have to do.

Yep. Other fun things on the IPO. Do you know who IPO'd the day before Microsoft did? Ooh, no. Oracle. Aha. And Oracle had a nice pop, which actually helped Microsoft price a little bit higher in their IPO. That is another episode we have to do.

Another thing adds yet another layer to the insanity of everything that we've been talking about of why they were able to build such a successful company on such little capital. I don't think there has ever been a tailwind in history like the one that Microsoft had with the secular growth of the personal computer wave.

Another thing adds yet another layer to the insanity of everything that we've been talking about of why they were able to build such a successful company on such little capital. I don't think there has ever been a tailwind in history like the one that Microsoft had with the secular growth of the personal computer wave.

And the only thing I can think of that is comparable is Amazon with the growth of the internet, sort of powering their early growth. But here's the stat. From 1975 to 1986, 11 years prior to their IPO, so founding to IPO, PCs grew at a compound annual growth rate of 98%. It grew from 4,000 units per year to 9 million units per year shipped.