On Being the Second Wealthiest Man:

Bill Gates doesn’t view being surpassed by Jeff Bezos in terms of wealth as a negative thing. Rather, he humorously suggests that it’s a sign he hasn’t given away his money fast enough to fall out of the top 10 wealthiest people. Gates mentions that strong market performance has contributed to maintaining his high net worth.

Microsoft’s Strong Performance:

Gates attributes the 35% increase in Microsoft’s value over the past year to the excellent leadership of CEO Satya Nadella. He also notes the larger trend of technology companies becoming the most valuable globally, stating that Microsoft holds a significant share in this market.

Biggest Professional Mistake:

When asked about his biggest professional mistake, Gates points to Microsoft missing the opportunity to dominate the mobile operating system market with Windows Mobile. He explains that this failure was due to a distraction caused by a trust trial and not assigning the best resources to the mobile operating system. As a result, Android became the dominant non-Apple mobile OS.

Market Cap and Missed Opportunities:

Despite being the only company with a trillion-dollar market cap, Gates believes Microsoft would have been far more valuable had it won the mobile OS competition. He recognizes Android as a significant asset for Google.

Meeting Melinda Gates:

On a personal note, Gates confirms that the story of how he met his then-wife Melinda is mostly true. Their initial encounter involved a somewhat awkwardly planned date that turned into a spontaneous meeting, which apparently was “spontaneous enough” for Melinda.

Each segment sheds light on Gates’ viewpoints on professional challenges, philanthropy, and personal choices, providing a multifaceted look at one of the world’s most influential figures.

Climate Change Concerns:

Bill Gates expresses a deep concern for climate change, particularly highlighting its devastating impact on farmers in poor countries who will bear the brunt of extreme weather conditions like droughts, floods, and heat. This would worsen existing issues of malnutrition and deprivation.

Role of Innovation:

Gates explains that tackling this crisis requires looking through the lens of innovation, emphasizing the importance of research and development, product creation, and deployment. He aims to educate people about the sources of greenhouse gases and pathways for innovative solutions.

Breakthrough Energy Ventures:

Gates has formed a fund called Breakthrough Energy Ventures with $1 billion in investment, of which he has contributed $250 million. This fund has been instrumental in supporting companies that focus on reducing greenhouse gas emissions. It has co-investors and aims for each participating company to have the potential to reduce greenhouse gas emissions by at least 0.5%.

Risk and Return:

Gates acknowledges that investments in Breakthrough Energy are high-risk but also done on a commercial basis. The fund is not philanthropic, and there is an expectation of a profit, albeit with a longer time frame for returns.

Climate Change Denial and Education:

Gates suggests that climate change denial in the U.S. has become a partisan issue, complicating efforts to reach agreements. He identifies a need to educate two groups: those who deny climate change and those who think it is easy to solve.

Climate Change vs Global Warming:

The term “climate change” is considered more accurate than “global warming,” as it encapsulates a broader range of problems, including extreme weather conditions, sea level rise, and heat waves, not just an increase in average temperature.

Long-Term Perspective:

Gates argues that governments, at their best, take a long-term perspective. He cites examples like investments in cancer research, which might not yield immediate benefits but are crucial for future generations.

Impact on Agriculture and Forestry:

The discussion also touched on the surprising 24% contribution of agriculture and forestry to global emissions. Gates points out that this includes land clearance and methane emissions from cows. He notes that efforts to create artificial meat have been promising.

The interview provides valuable insights into Bill Gates’ perspectives on the urgency of tackling climate change and the avenues he believes are most promising for doing so.

Plant-Based Meat Alternatives:

Bill Gates discusses his investment in plant-based meat companies like Impossible and Beyond Meat. He notes that these products offer a healthier alternative for consumers and are also beneficial for the environment. They reduce methane emissions, animal cruelty, and the pressure on land use from traditional meat production.

Increasing Meat Consumption:

Gates points out that rising wealth in countries leads to increased meat consumption, which is inefficient for calorie production. The shift towards plant-based alternatives is thus crucial for sustainability.

Role of Solar Energy:

Solar energy is considered part of the solution to climate issues, but it can’t be the only one. Gates stresses that electricity needs to be reliable, which is not possible solely with solar and wind energy due to their intermittency. Baseload power from other sources like nuclear energy is necessary.

Electric Sector Expansion:

Gates indicates that the electric sector will need to more than double to replace hydrocarbons in various applications like heating and transportation. This growth raises concerns about grid vulnerability to cyber-attacks, something that will need to be addressed.

Nuclear Energy:

While existing nuclear technologies are expensive and less safe, Gates sees promise in fourth-generation nuclear plants. These could offer better safety, less waste, and lower costs, becoming a substantial part of the solution for reliable, on-demand energy.

Fusion vs Fission:

Fusion is considered exciting but remains a significant scientific challenge. Unlike fission, which needs straightforward engineering for next-generation improvements, fusion requires many inventions to become viable.

Electric Cars and Transportation:

Electric cars are a likely solution for personal transportation but not for heavier transport like trucks, planes, and ships. Gates highlights the energy density of fuels and notes that we still need zero-carbon liquid fuels for such applications.

Government Involvement:

Gates mentions Mission Innovation, an initiative that aims to double government investment in clean energy R&D. He stresses the essential role of the U.S. in global climate innovation and sees the U.S. withdrawal from the Paris Accord as a significant setback.

By covering multiple facets of climate change and sustainable solutions, Bill Gates provides a comprehensive look at the challenges and opportunities ahead.

Early Days and Urgency:

Bill Gates discusses the early days of Microsoft, noting that he felt a sense of urgency to start the company immediately. He believed that if he didn’t act fast, someone else would build a successful software company. However, he later realized that this sense of urgency was probably misplaced, as the opportunity for Microsoft would still have existed even if he had waited a couple of years.

Education and Risk-taking:

Gates addresses his decision to drop out of Harvard, stating that he doesn’t feel like he’s missed out on his education as he continues to learn. He argues that dropping out to start a company isn’t an irrevocable decision, especially in the United States, where failure isn’t stigmatized. According to Gates, if you don’t have responsibilities like children to support, taking the risk is relatively low.

Factors Behind Microsoft’s Success:

When asked about Microsoft’s early competition, Gates reveals that although they weren’t the biggest initially, by 1991 they had outpaced other software companies. He attributes this to Microsoft’s focus on engineering and not being tied to a single product. Their strategy paid off when the graphical interface, specifically Windows, became mainstream in 1995, catapulting Microsoft far ahead of competitors.

Technology Companies and Power:

Gates acknowledges that technology companies have become extremely central in today’s world. He mentions that the government needs to consider the role these companies play in various aspects of society, including elections, bullying, and financial monitoring. Gates implies that the concentration of power and data in the hands of technology companies is a complex issue that needs governmental attention.

Government’s Role:

On the topic of regulation, Gates suggests that the increasing centrality of technology in modern life necessitates governmental oversight. Issues like elections, bullying, and financial monitoring have all been influenced by technology, prompting a need for legislative action.

Government and Tech Regulation:

Bill Gates acknowledges the need for governmental involvement in the tech sector. He admits to initially avoiding Washington D.C. but later regretting that decision, noting that tech companies today are very engaged with regulatory bodies. Gates anticipates that there will be increased regulation, particularly around privacy issues, to ensure that technology’s benefits outweigh its negatives.

Attempt to Buy Facebook:

When asked about Microsoft’s failed attempt to acquire Facebook, Gates reveals no regrets. He explains that Microsoft bought a small part of Facebook, which turned out to be a successful investment. Gates feels that social networking was not a space Microsoft was destined to lead in, contrasting it with their acquisition of LinkedIn, which aligns more closely with their engineering culture.

Missing the Cloud Opportunity:

Gates discusses how Microsoft missed the early opportunities in cloud computing, conceding that Amazon’s lead with AWS was surprising and well-executed. He mentions that traditional enterprise vendors like IBM, Oracle, and SAP should have been the natural leaders in this space but failed to make a significant impact. Microsoft is now a strong number two in cloud services, but Gates acknowledges that they should feel bad for not having beaten Amazon to the punch.

Contemplating the Current Tech Landscape:

The discussion also hints at Gates’ thoughts on what he would do if he were 20 years old today, though it cuts off before he can answer. This suggests an underlying theme of how rapidly the tech landscape is evolving and the importance of seizing opportunities, both topics that Gates has firsthand experience with.

Innovative Focus:

Bill Gates discusses the exciting opportunities available for innovation in today’s world, particularly in biology and energy. He expresses that if he were starting anew, he’d focus on an AI company aimed at teaching computers to read and understand all the written knowledge in the world. He sees this as a significant challenge that AI has yet to overcome but believes the impact would be profound.

AI and Society:

When asked about the potential dangers of AI, such as job displacement, Gates posits that the increase in productivity will be a net positive, despite the challenges it may bring. He believes that the extra time gained from AI-enhanced productivity could be used beneficially, but acknowledges that societal adjustments will be necessary.

Personal Motivation and Work Ethic:

In contrast to other wealthy individuals who typically slow down as they age, Gates explains that his continuing hard work is fueled by his love for his work, particularly his foundation. He reminisces about his 20s, saying that by those standards, he is “fairly lazy” now. Gates anticipates that his involvement in innovation, both through his foundation and part-time work for Microsoft, will continue for decades.

Role in Shaping Innovation:

Gates sees a unique role for himself in shaping innovation across various sectors. Drawing upon his extensive background, he believes that he has a unique perspective that can contribute to advancements in areas like AI, biology, and energy, among others.

Public Life:

Bill Gates finds that people are generally respectful when he’s in public, especially when he’s with his family. While he does attract attention, he doesn’t find it overly bothersome.

Sports and Hobbies:

Gates’ current sport of choice is tennis, where he has played with elite players like Roger Federer. He acknowledges that he doesn’t stand much of a chance against them when they’re playing at full capacity. Gates has mostly given up on golf but still enjoys playing bridge, although he notes that the bridge-playing community is aging and not attracting younger players.

Shopping Experiences:

Despite his wealth, Gates enjoys simple activities like shopping for clothes with his daughter. He uses these experiences to bond with his family. He also mentioned a specific incident where he found assembling furniture from Lowe’s to be challenging, half-jokingly wishing for augmented reality to aid in the assembly.

Relaxation and Reading:

Gates finds relaxation in traveling with his family and reading. He aims to read around 50 books a year and often writes serious reviews for them.

Philanthropy:

When discussing his philanthropic efforts, Gates mentions that his foundation’s focus is primarily on global health and K-12 education in the United States. The foundation has seen significant success in reducing the number of children who die before the age of five globally. In contrast, efforts in U.S. education have not moved the needle as much as they’d like, even though the U.S. spends more on education than any other country.

Common Core:

In the education sector, the foundation tried to promote the Common Core, aimed at streamlining and improving math education in the United States. The approach became more rigorous and was modeled after the best U.S. standards. However, Gates acknowledges that they haven’t seen the kind of impact they had hoped for in educational metrics.

Standardizing Education:

Bill Gates discussed the efforts to align educational material across different school systems. This has been an ambitious goal aimed at ensuring a standardized educational experience for students moving between school systems. The initiative faced criticism, yet according to Gates, it has largely succeeded.

Relationship with Warren Buffett:

Bill Gates described his long-standing friendship with Warren Buffett, whom he met in 1991. Gates was initially reluctant to meet Buffett as he did not see the buying and selling of stocks as valuable to society. However, upon meeting him, Gates was captivated by Buffett’s understanding of the world and the questions he posed, such as why IBM couldn’t put Gates’ Microsoft out of business. Buffett’s question was insightful, considering IBM was a dominant company in computing at that time.

Buffett’s Philanthropy:

Warren Buffett decided to give a significant part of his fortune to the Gates Foundation. This enormous gift effectively doubled the ambitions of the foundation, enabling them to extend their efforts into new areas such as malaria eradication, agricultural development, and sanitation. Notably, Buffett declined to have his name associated with the donation, exemplifying his humble nature.

Insight into IBM’s Missed Opportunity:

When asked about IBM’s mistake of not buying the software for their IBM PC from Gates, he suggested that while this would have benefitted IBM, it wouldn’t have dramatically altered the course of computing history. Gates argues that the rise of personal computing, based on a very different vision of computing architecture centered around microprocessors and software, was more impactful.

Lessons from Buffett:

Gates emphasized that he has learned immensely from Warren Buffett, not just in terms of finance but also in understanding how the world works. Buffett’s questioning of IBM’s inability to put Microsoft out of business served as an example of his depth of understanding of business strategy and market dynamics.

Philanthropic Approach:

Bill Gates explained that focus is crucial in philanthropy. Once a specific area is chosen, such as global health or education, it is easier to say no to opportunities that fall outside of that scope. The Gates Foundation employs a team of 1,500 staff to work with innovators in its key focus areas.

Raising Children:

Gates addressed the challenge of raising well-adjusted children in a wealthy household. He emphasized that the credit largely goes to Melinda Gates. He also mentioned that their children know that most of their wealth will go to philanthropic efforts, rather than to them, to prevent any sense of entitlement.

Foundation’s Timeline:

When asked about why the Gates Foundation has a finite lifetime, Gates credited Warren Buffett’s influence. The aim of the Foundation is to solve issues like global health inequality within a set timeframe. Bill Gates believes that problems will evolve, and future philanthropists should tackle those with their contemporary understanding.

Regrets and Lessons:

Gates expressed few regrets in his life, including the timing of starting his philanthropy. While admitting that an earlier focus on issues like an HIV vaccine could have been beneficial, he said the timing worked out well overall. He mentioned the antitrust lawsuit against Microsoft as a lesson that possibly hastened his retirement, but he sees it as part of his journey.

Life’s Greatest Pleasures:

Bill Gates finds his greatest pleasure in spending time with his children and scientists, reading, and seeing the impact of the Foundation’s work. He especially enjoys meeting scientists who are committed to solving climate change and believes in a system thinking approach to tackle these complex issues.

Climate Change Action:

Bill Gates discusses the significance of individual contributions to tackling climate change. He emphasizes that although people might not have his level of resources, they can still make a difference. He suggests that individuals can opt for greener solutions in their consumption patterns, such as new meat products or renewable electricity. The most potent action, however, is to use one’s political voice to influence long-term, bipartisan policy solutions. Gates argues that a consistent, long-term policy approach is more effective than short-term victories.

Philanthropy:

Gates advises average individuals on philanthropy, suggesting that they choose causes they deeply believe in and get involved. Local social services and schools can benefit significantly from smaller-scale donations, while global causes offer more impact per dollar, such as funding vaccines. Gates stresses that the goal of philanthropy is not necessarily to choose the “most impactful” cause but rather a cause that personally resonates with the individual.

Personal Life:

Gates briefly discusses his anticipation for having grandchildren, clarifying that he doesn’t view Microsoft as a dynastic organization. The implication is that he wouldn’t necessarily push his grandchildren toward software or the family business.

By engaging with these various themes, Gates highlights the importance of individual contributions in areas ranging from climate change and philanthropy to personal life decisions.