How To Invest Without Investing: 'Keep It Simple,' 'Forget The Stock Price,' And 'Luck'

Steve Ballmer
Former CEO of Microsoft

There is saying that says: "Don't put all your eggs in one basket." That is one of the most common mantra of successful investing. But no, not for this man.

Steve Ballmer is the former CEO of Microsoft, a close friend of Bill Gates, and a successful businessman and philanthropist. But what's behind is massive wealth, is his belief in an unconventional wisdom of investing.

Instead of diversifying his assets, buy when stocks are low and sell them when they're high, Ballmer has more than 80% of his portfolio on just one company: Microsoft.

Unlike most wealthiest people in the world who typically go beyond just stocks and bonds, and have investments in non-liquid assets like private equity and real estate. Ballmer said he is "mostly dialing out of private equity."

Ballmer has virtually no exposure to alternative investments, and that he has no interest in finding new ones either.

Steve Ballmer
Steve Ballmer.

Steve Ballmer said that his investment strategy is partly influenced by Warren Buffett.

But Ballmer, whose net worth is larger than Buffett, follows on Buffett's idea on focusing on only long-term portfolio, rely on financial health and stability, ignore market fluctuation, and invest in only what he understands.

As for the latter, there is nothing he understands more other than Microsoft.

In an interview with The Wall Street Journal, Ballmer said that:

"Microsoft's outperformed just about every other asset I could have owned."

"The only stock I really study still is Microsoft, because that's still overwhelmingly, overwhelmingly, overwhelmingly the No. 1 thing that I own."

He also said that his philosophy was shaped by Buffett’s advice that retail investors are better off parking their money in an S&P 500 index fund rather than trying to outsmart the market.

And when asked if his strategy can apply to everyday investors, he replied:

"I would say, ‘Keep it simple’—unless you’re really going to become an expert."

It's worth noting that Ballmer wasn't always going against the trend.

The 68-year-old had tried diversifying in the past, it's just that he struggled to find money managers who consistently beat the market.

He then added:

"Forget the stock price. I had luck, essentially, in getting to listen to the right people."

"But I also had luck in terms of my loyalty to the company and not wanting to be a seller as a leader of the business. It turned out to be a great investment thing, too."

Steve Ballmer
Steve Ballmer is widely known for his passion for basketball. In 2014, he purchased the Los Angeles Clippers for $2 billion, becoming the team's owner.

Ballmer began his career at Microsoft in 1980 and succeeded co-founder Bill Gates as CEO in 2000, before being succeeded by Satya Nadella.

According to regulatory filings, Ballmer held 333 million shares – a 4% stake – in Microsoft when he stepped down as CEO in 2014.

At the time of the interview, Ballmer's wealth was estimated at around $150 billion, making him one of the richest individuals whose wealth comes from a company he didn't found.

As Microsoft leads the AI race against competitors like OpenAI, Google, and Meta, the company's stock continues to experience significant growth.

With that significant stake, any rise in Microsoft's share price directly boosts his net worth.

It's worth noting that at one point, Ballmer was even richer than Bill Gates himself.

It's also worth noting that his other big investment—the Los Angeles Clippers—also appears to be doing well. He acquired the NBA franchise in 2014 for $2 billion, at this time, it’s worth $5.5 billion.