Michael Bloomberg, former mayor of New York City and a 2020 Democratic presidential candidate, is best known to the public for his political career. But long before he entered the realm of politics, Bloomberg had already cemented his place as a billionaire and financial tycoon. Here’s a dive into how Michael Bloomberg made his fortune.
How Did Michael Bloomberg Make His Money?
1. Salomon Brothers: The Starting Point After earning an MBA from Harvard Business School in 1966, Bloomberg began his career in the securities brokerage Salomon Brothers. He quickly climbed the ranks, becoming a partner in 1972. However, in 1981, Salomon Brothers was acquired by Phibro Corporation, and Bloomberg was laid off with a severance check of about $10 million.
2. Birth of Bloomberg LP: A Vision of Financial Information Rather than taking his severance and retiring or seeking another corporate role, Bloomberg had a vision: to create a computerized system that would provide real-time financial data and analytics to investors around the world. In 1981, using his severance money, he founded Innovative Market Systems (later renamed Bloomberg LP).
Bloomberg’s terminals, as they became known, revolutionized the financial industry. They provided traders, analysts, and other professionals with real-time access to financial data, which was invaluable in a fast-paced industry. By the 1990s, Bloomberg terminals were a staple in investment houses around the world.
3. Diversification: Beyond Terminals Bloomberg LP expanded its services beyond just the terminal. The company started:
- Bloomberg News: A global news agency focusing on business and financial news.
- Bloomberg Television: A 24-hour global television network.
- Bloomberg Radio: A global radio network.
- Bloomberg Businessweek: A weekly business magazine, acquired in 2009.
4. Personal Investments and Other Ventures Beyond his earnings from Bloomberg LP, Michael Bloomberg has made a series of personal investments over the years, further boosting his wealth. He also ventured into politics, serving three terms as New York City’s mayor (from 2002 to 2013) without accepting a salary, opting to be paid just $1 per year.
5. Philanthropy: Giving Back It’s worth noting that Bloomberg is a signatory of The Giving Pledge, which means he has committed to giving away at least half of his wealth to philanthropic causes during his lifetime or in his will. Through Bloomberg Philanthropies, he has donated billions to various causes, including public health, the environment, and education.
Conclusion Michael Bloomberg’s journey to becoming a billionaire is a tale of vision, innovation, and risk-taking. From his early days at Salomon Brothers to the creation and expansion of Bloomberg LP, he showcased a unique ability to see gaps in the market and create solutions that had global demand. His story is a testament to how innovative thinking, combined with a deep understanding of an industry, can lead to immense success.
