How Michael Dell Leveraged His Entire Fortune (& Won)
ฝัง
- เผยแพร่เมื่อ 5 มิ.ย. 2024
- Did you know that Michael Dell is worth more than Dell itself? That’s right, Michael Dell is currently worth $85 billion while the entire company of Dell is only worth $60 billion. This is quite an impressive feat, being able to surpass the total worth of the main thing that you’re known for. But, this was by no means an easy journey for Michael. In fact, he actually gambled his entire fortune to make it happen. With a net worth of $15 billion, Michael borrowed a total of $70 billion to take Dell private and complete the pricey acquisition of EMC. This not only allowed Michael to transform Dell into an enterprise company but also acquire an extremely valuable asset: VMware. VMware has become the king of virtualization over the past 15 years and Broadcom just acquired the company for $69 billion leading to a massive windfall for Michael. This video tells the story of how Michael Dell gambled his entire fortune and came out victorious.
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Timestamps:
0:00 - Gambling It All
3:10 - Taking Dell Private
6:47 - Keeping Dell Alive
10:04 - The Great Pivot
Thumbnail Credit:
Forbes
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Resources:
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Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.
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Ironically, Dell stock up 25% today on earnings
Indeed. Michael Dell knocking on the $100 billion mark.
Actually 30% and is projected to yield even more in afterhours
@@mankind8088projected by who? Lmao
This dude the reason I worked at Apple.
Thx iosacademy
Only cuz nvda tho
Interesting thing about Michael Dell is that he started his company in his college dorm room at the University of Texas his freshman year as pre-med major, and eventually dropped out of college due to the rapid rise of his business. In 2013 it was announced that Dell was donating $50 million to start a new medical school at the University of Texas Austin campus, which is now know as the Dell Medical School. He has also donated another $100 million for low income students at the University.
The Dell Charitable Foundation had assets of about $2 billion in 2022, but probably much higher now that the Dell Stock price has increased. In 2022 the foundation donated about $200 million to various charities.
I am actually a beneficiary of one of those charities.(I am a university student funded by Dell Young Leaders, a bursary of Micheal and Susan Dell Foundation)
Dude, if I had $10B liquid in cash, I'd save $5billion, and live on 5B for the rest of my life. Really to live like a rich guy, you only need about 20 to 30 Mill.. 5B is like "hey, I can buy whatever I want". Dell was hella gutsy. Amazing.
This mindset is why u are broke 🤣
Can’t blame you haha
fortune favors the bold. high risk and high rewards but you are right. 100 billion+? it is downright impossible for anyone to spend so much in a life time.
@@skd3480 no, after one billion. anymore money is meaningless. you cant spend it in your lifetime. your standard of living and lifestyle wont even change as a matter of fact. it is just more work and more stress for little gain in your material life. to have so much weatlh means huge risk, risks that way keep you from sleeping at night and cause you stress 24/7
Or you know, be happy with that much of money
It's crazy that Michael Dell is just as old as my dad (early Gen X). It seems like he should be at least in his 70s considering that Dell has been around in the computer industry from the beginning; I mean, it's among the oldest surviving major computer companies, along with HP and Apple. At this age, he can still lead Dell for another one or even two decades into the future!
Yeah for real, he started Dell and it became successful at such a young age
IBM is still around and making larger computers. IBM sold its PC business to Lenovo. Compaq was a major PC manufacturer, but was later acquired by HP. My first PC was a Micron, still around as one of the largest memory chip manufacturers but no longer making PC’s.
@@Mark-rw3kwthanks for the clarification, I meant PC or laptop manufacturers. I wish more of these companies survive to these days.
@@RiRian-cw7pr Yes I know you meant PC manufacturers. I was just pointing out that IBM’s PC business is still around, but is just owned by Lenovo, which I believe has the biggest market share of any PC vendor (desktop or laptop). Likewise Compaq was IBM’s biggest competitor in the PC market before being acquired by HP.
He was the youngest billionaire back in the day.
No one who'd "walk away with $10 billion they already had" would gain those $10 billion in the first place.
Fair enough
Cringe
Very true. Actually that’s deep and most people won’t understand what you just said.
@@777jones it's not that deep kyle
Except when you have 10 billion you can gamble away 9 billion, lose it and still be set for life, so it isnt really that big of a risk
Another fantastic video! I started working for Dell in the late 90’s in Sydney, Australia and transferred to Toronto, Canada in 2000 for about 18mths then again 2010-2013 in Toronto. Dell always had great leadership and that started at the top. Michael Dell has and always will be an inspirational leader. Look up ‘lead by example’ and there’s a photo of Michael Dell. Any tech company that has hired someone in Tech in the last 25yrs has always known that an ex-Dell employee would be a ‘good’ hire. The brand of your CEO and the organization they run, carries an intrinsic value to anyone that works for them…either in a positive or negative way. Thank you Michael…we need more leaders like you.!💪👊🙏
I didn't know Dell was a person
Oh really? That’s crazy
Same
You are hilarious and young
I want to know what did you think "it"was
😭😂🤣😭😂🤣😭
We had a chapter on him in 4th grade probably,... That's the time when we came across the word millionaire
I have very good memories of Dell Computers. Good for Michael Dell
Plot twist: The person we now know as Michael Dell was actually adopted by Dell Company.
Michael is an underrated business genius. Built Dell from his bedroom assembling PCs
One of the best episodes on this channel by far!
I want to say thank you to the guy in the comments who recommended Eledator to me. You've been very helpful. Thank you!
Eledator is garbage
What's eledator😮
@@honor9lite1337 i dunno, these spam bots just want you to search it up in the web to influence your algorithm
You can tell it's not just about the money for these billionaires. It's with that mindset they're able to do great things. Their judgement aren't clouded by monetary gains.
Amazing video bro 👌
Thank you Umar!
He took a gamble and succeeded
Indeed
Finally a video from you that I actually thought was fun again 😅
Super cool episode Hari!
Thanks man! Had a lot of fun researching for this one :)
Great video as always
Thank you as always Balpreet!
Much love from Uganda Africa
and important thing to add, concerning vmware, every window or app you have open on any computer basically is in a simulation
I lived through the EMC acquisition and I can tell you that he did sound crazy to me and many, at 10 Bln$ you are set you can sell and try to make money elsewhere. He had a big emotional attachment to Dell as a company though, a lot less now apparently.
Excellent explanation Hari. But what gave Michael that kind of confidence?
Also is it the broadcom guy who lended Michael go private and then bought vmvare for 62billion?
Guess he was bored with retirement and was willing to risk it all to get to the next level haha.
I’m not sure if there was any connection there actually.
You might want to give credit to Michael for his book, from which it appears you drew a lot of inspiration for this episode
Excellent video!
Dame, what a legend.
He's a really recognisable man, but sadly most people don't Know about him thanks to you bro you make a video on him otherwise alot people only know Elon musk as the most risk taker in business industry and you also gain a subscriber
This literally differs a CEO from the CEO who should be visionary and steer the company. Great video
more of a founder CEO or hired ceo kind of thing
Dell not only gamble well, but played in smart.
What is the name of the song at 3:10 and 10:05? I know its probably some royalty free music but I can't find it and I really dig it. Thank you =)
Very cool, great insight
That man had bowls of steel to gamble like that and Was a winner
I'd acquire VMware & assign them a new project, to create a whole new internet browser & put that in all Dell PCs & laptops . . . the PCs will be sold at a zero profit margin but customer will have to pay a small token amount for the new browser in the PCs . . . customers will still have the option to opt for other browser though . . .
Dell guy is awesome 😮
Bro increased his wealth from 16 billion to almost 90 billion but could climb only from the 18th place to the 15th.
Amazing leverage. Wsb type stuff
Indeed hahaha
😮 michel dell is literally on god mode
Please understand debt. The Corp model, private or public, sheilds Michael's personal fortune! As long as he was allowed borrow money with Dell's assets as collateral all was fine.
I know what you mean, but it was still a massive bet nonetheless
This was a leveraged buyout.
Dell himself was only in for few billion.
But he owned a lot of Dell Stock, which could have become worthless if the company went bankrupt due to over-leveraging.
Taking on $70 billion in debt to save his company? That's the kind of move that separates the titans from the rest.
A focus and a Dell
A focus and a Dell
Degen moves, respect
Hahaha
Great job! 👏
what is the role of china between broadcom and VMware merger?
Glad you guys changed the first thumbnail. It didn't make sense 😂
I build my desktop but Dell is the only company I ever bought a computer from.
I’m starting to think FreeDawkins is connected with team stat keepers😂…how else does he upload so fast? I’m sure he’s on of them dudes😂
Michael had to what he did to save his legacy. Just imagine living in your old age and people constantly asking what happened to his company that was dead long ago! No, i wouldnt allow my own child die in front of my eyes. This concern only happens to those tech entrepreneurs who are wedded to their company, not to the money!
Those Intel kickbacks really did the trick 😂😂
Every PC manufacturer go the same kickbacks from Intel.
Bro how did you write this type of script ? Any suggestion
Practice.
Dude, I'm getting a dell.
Success seems to be connected with action successful people keep moving. They make mistakes. But they don't quit. The stock market has plenty of opportunities to earn a decent payouts, with the right skills and proper understanding of how the market works.
Assets that can make one successful in life
1 Forex
2 Share
3 Stocks market
@@AuroraParra-ey3vcYou are right.
But I don't know why people remain poor due to ignorance..
@@nicholaswoods8840It's not of ignorance but unprofessional b📊r📊o📊k📊e📊r in the market
Was this video created before Q4 result just skyrocket Dell stock ?
Yeah, been in production for a few weeks
Can you make a video on BYD surpassing Tesla in sales?
Thanks for the suggestion man
I remember when Dell was called PC limited.
Bro at the first thumbnail there was only debt😄. And I questioned why
Same here I noticed that too and was scratching my head 😂😂😅
Dave ramsey: "Dell is the most stupidest person ever lived"
😂😂
Can you please make a video on intuit Hari please?
Thanks for the suggestion Monu
Taking the 10 billy in a heartbeat
Have been watching Dell stock for several months and finally decided to buy it yesterday ........ one day before it went up 26%. It is considered an AI stock now so its seeing lots of AI money pouring in.
Hahaha good timing
It's a big oversight to not mention that Dell went public again in 2018
Huh? He mentions it in the video.
@@robf1801 No, he doesn't.
@@HotblockNFTs what do you think 2:20 says genius
@@robf1801The video ends with Broadcom's purchase of VMWare. I'd have to be a genius to recall a brief mention 12 minutes prior to the ending, wouldn't I? I'm a mere mortal of slightly above-average intelligence in the presence of your obvious brilliance. My apologies if my remark has caused you offense. 🙄
@@HotblockNFTs you could just say "whoops I'm wrong" instead of that long-winded excuse.
Could've posted this yesterday before earnings haha. I completely forgot they had earnings at closing and missed out.
bro i actually thought the first few minutes was the entire video
I’m baffled as to where all this cash in the economy even comes from. Of people are buying and selling companies for tens of billions, yet they can be generating negative or low profits, just who accumulates all the cash in the first place? Most billionaires only have a small proportion of their wealth as liquid assets.
Hahaha, all the world's money is way more concentrated than you might imagine.
i worked for emc.
3:00 89b btw.
For billionaire
Gambling output is Success
He is currently worth $97 billion , soon to be a centi-billionaire...
You messed up the startup quote
Great video though
I'm older than Michael Dell, so if it were me I'd take the 10 billion and walk.
99.9% of people would lol
i have a dell laptop, never knew dell was also a guy... lol. Thanks for the vid!
Hahaha
I would have walked away with 10, sorry, run😂
Its guys like this you like to see win .
I actually wanted on it.
How tf was he allowed and even able to borrow 80B. I wish you would have 8nsluded this for context.
Now he offically entered the 100 billion dollar club according to Bloomberg Billionaire Index
*A New Video 📹 Every Day And A New Secret* 🙊 ✨️ Told
If you're a small guy like me, your best bet is Dollar Cost Averaging.
Would I gamble with my $10 billion? Jeez, I wish I had the opportunity to make such a decision.
Hahaha
I used to think he made a deal with the Devil. Now I think the payment is due
Literally no one would have ever done this. I dont even think Carl Ichan knew what to do or how to do it. Michael Dell had to have seen the future. I'm talking time machine visits, etc. One economic downturn, with all that leverage, and he wudda been BTFO.
make video on logically answered
Unbalance of probabilities, nowhere close to that much leverage is recommended. Other than that, every case may have its own intricacies. Which worked out in this case.
He got rich by delivering better-than-average customer service in market full of really shitty vendors. His build-to-order operation was fast and efficient, but he pissed off a lot of customers by his pricing shenanigans.
now i know why they became Intel's minion
Maybe dell should not have concluded with intel
Yes, I would take a gamble on me, have done so since day one yeah...
This is interesting but at the end of the day it's still all about luck. All the decisions he made might have been really bad, just like it happened with other businesspeople. VMWare could have been a flop etc.
It's unfair that he got this kind of money😢
Would you believe I know his wife? Perhaps not..
^ ^
Sincerely,
Melvin
Big Data Daddy
I am glad it worked out well for him, but still, the gamble was dumb.
Be mysterious don't show your face.
He did tho 😂
What happens if he was unable to pay for freaking 55 billion?
It becomes the whole "If you owe someone $100 you have a problem. If you owe them $100 Million they have a problem".
Hahaha, he would’ve likely needed to file for bankruptcy
He would need to live off of ramen noodles for a couple of months
Probably nothing. I expect he saved some money in a safe place, Switzerland or Panama account and then what would lose is company assets.
As a dev, Dells were the worst to work on
But didn't he tell Apple to liquidate and pay back the shareholders? Steve Jobs got the last laugh.
He was brilliant figuring out Dells, VMWare and Boomi go together pre big 3 x cloud era obsession.
Hahaha, yes, I do think he did that 😂
@@LogicallyAnswered Jobs didn't live long enough to get the last laugh, and he didn't own much Apple stock (sold it all when he left Apple the first time). Almost all of Jobs' wealth (and his widows wealth now) came from when he sold Pixar to Disney.
I gamble all my fortune and lost.
Oof hahaha
He's rich, but Dell is his baby. If you see your baby dying, would you risk everything to save it?
Fair enough
Dell VMware Broadcom HP Veritas Symantec all belong to the same family
He could have just bought 1b in Btc 2bn in INVIDA bought tesla.. these were all no brainers even at the exact right time to buy. Having the billions to invest would be a the brain drain.
Dell bought out other public investors at a ripoff of a price and then relisted it to his advantage.
Hello
Hey DrDolt
Who?