Warren Buffett's Simple Question Transformed Bill Gates's Outlook On Microsoft: 'Why Can You Do Better?'

In a conversation to commemorate their 25-year friendship, billionaire philanthropists Bill Gates and Warren Buffett discussed various aspects of their relationship and professional journeys. During the discussion, moderated by former TV journalist Charlie Rose, Gates reminisced about a thought-provoking question Buffett asked him in the early 1990s.

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Had it not been for that question, the modest tech company established in Albuquerque, New Mexico, might have never transformed into the global powerhouse known as Microsoft Corp.

Reflecting on that moment at Columbia University, Gates shared Buffett's simple yet powerful question: "Hey, Microsoft is a small company, IBM is this huge company, why can you do better? Why can't they beat you at the software game that you're playing?"

While Gates and his co-founder, Paul Allen, worked tirelessly during the early years of Microsoft, they focused on refining their software and contemplating ways to gain a competitive edge. They searched for a factor that had not received significant attention from their competitors.

Gates integrated the concept of identifying advantages into his daily thought process, constantly evaluating their unique selling points and strategies. "I always — every day I was thinking about, OK, what advantage do we have, what do we do?" he said.

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Throughout the 1990s, Microsoft gained a competitive advantage by focusing on the development of user-friendly interfaces, particularly through its Windows operating system. This approach appealed to nontechnical customers, a demographic that had been largely overlooked by other companies.

Gates's strategic foresight was evident when he issued an internal memo in 1995, warning Microsoft employees about the upcoming "internet tidal wave." The memo set the company on a path to shape the future of web surfing.

Gates emphasized the significance of the internet, stating that it is "crucial to every part of our business" and deeming it "the most important single development to come along since the IBM PC was introduced in 1981." Motivated by this realization, Gates went on to delineate a comprehensive strategy for Microsoft, aiming not only to enter the internet realm but to establish dominance in it.

Tech Startups

Taking a cue from Gates and Buffett's success stories of Gates, investing in tech startups can be a strategic move to capitalize on the potential of disruptive innovations. RYSE has developed cutting-edge devices that motorize and automate window coverings, catering to both residential and commercial spaces. Its smart home technology offers convenience, energy efficiency and enhanced automation, making it a company with great potential.

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