Bill Gates' Net Worth Drops 29% to $124 Billion, Ballmer Surpasses Him

Bill Gates, once the richest man in the world for 18 years, has seen his net worth decrease by $51 billion, allowing his former assistant and Microsoft successor, Steve Ballmer, to surpass him in wealth. Gates' philanthropic spending has led to a significant drop in his net worth, from $175 billion to $124 billion, causing him to slip from the fifth wealthiest person to the 12th on the Bloomberg Billionaire Index. This change reflects Gates' commitment to donating his fortune to charity, with plans to give away almost all of his wealth to the Gates Foundation over the next 20 years.

Gates' wealth adjustment was due to a readjustment of the appreciation rates to better reflect his charitable giving. He has stated that he is determined not to die rich and that his children will inherit less than 1% of his fortune. This philanthropic mindset has paved the way for Ballmer to become the fifth richest man in the world, with a net worth of $172 billion.

Ballmer joined Microsoft in its early days as an assistant to the president in 1980. He was offered a $50,000 base salary alongside 10% of any profit growth he generated at the business. Later, he traded his profit-sharing deal for an 8% stake in the company, which proved to be extremely lucrative. Ballmer served as the CEO of Microsoft from 2000 to 2014 and held 333 million shares in the company, or around a 4% stake worth $22.5 billion, when he stepped down as chief executive. Today, most of his investment portfolio is still wrapped up in Microsoft's stock.

Ballmer attributes his vast wealth to being in the right place at the right time and not cashing in too early. He has since ventured into other arenas, buying the Los Angeles Clippers for $2 billion the same year he retired from Microsoft. The team is now valued at $5.5 billion. Following in Gates' footsteps, Ballmer has also donated more than $4 billion of his fortune to charity and founded a philanthropic organization focused on improving economic mobility for families in the United States.

Gates' philanthropic efforts have not only reduced his net worth but also allowed his former assistant to surpass him in wealth. This shift highlights the impact of charitable giving on an individual's net worth and the potential for others to benefit from their success. As Gates continues to donate his fortune to charity, it is likely that his ranking on the Bloomberg Billionaire Index will continue to decrease, while Ballmer's wealth and influence in the tech industry and beyond will only continue to grow.