Steve Ballmer Once Recalled Charlie Munger Telling Him: 'I Know, You're Not That Smart' — Here's What The Ex-Microsoft CEO Replied

Steve Ballmer once shared however Charlie Munger bluntly questioned his determination to clasp Microsoft stock.

Speaking connected the Acquired podcast successful 2025, Ballmer recalled a candid speech during a state nine Q&A league successful Los Angeles, wherever Munger didn't clasp back.

"Steve, you know, I'm wondering wherefore you held connected to your Microsoft banal erstwhile your partners implicit determination didn't," Munger said. "I cognize you're not that smart."

The remark, diagnostic of Munger's famously nonstop style, drew laughs — but besides underscored a superior investing principle.

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Ballmer said his effect was simple: "No, Charlie, but I'm loyal."

Unlike immoderate aboriginal Microsoft insiders, including Bill Gates, who diversified portions of their holdings implicit time, Ballmer chose to clasp connected to astir of his involvement successful the institution helium joined successful 1980 arsenic worker No. 30.

For Ballmer, the determination wasn't purely financial.

"It's benignant of a from-the-heart benignant of thing," helium said, adding that adjacent successful a worst-case scenario, "me and my family, we tin unrecorded … I'm OK either mode it goes."

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Munger, the longtime concern spouse of Warren Buffett, erstwhile told shareholders that his family's full portfolio was concentrated successful conscionable 3 large investments.

While galore fiscal advisors item diversification — spreading wealth crossed stocks, communal funds and ETFs to bounds hazard — Munger argued that specified a strategy isn't indispensable for investors who genuinely recognize their positions.

"Diversification is simply a regularisation for those who don't cognize anything," helium said, adding that Buffett refers to them arsenic "know-nothing investors."

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Today, Ballmer is worthy much than $125 billion, according to Forbes, with overmuch of his wealthiness tied to Microsoft, which has grown into 1 of the world's astir invaluable companies.

Ballmer, who held astir 4% of Microsoft astatine the clip of his retirement, has retained the bulk of his involvement and has said helium remains the company's largest idiosyncratic shareholder.