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"We win because we hire the smartest people. We improve our products based on feedback, until they're the best. We have retreats each year where we think about where the world is heading." He won't even cop a plea to the charge that Microsoft tends to react to competitors' ideas--the graphical interface of Apple, the Web browser of Netscape--more than it blazes new trails of its own. "Graphical interfaces were done first at Xerox, not Apple. We bet on them early on, which is why Microsoft Office applications became the best."
Gates is enjoying this. Intellectual challenges are fun. Games are fun. Puzzles are fun. Working with smart people is superfun. Others may see him as ruthless, cold or brutal; but for him the competition is like a sport, a blood sport perhaps, but one played with the same relish as the summer games at Hood Canal. He sprawls on a couch, uncoils and pops open a Fresca. Though rarely attempting the social warmth of his mother (he doesn't actually offer me a Fresca but acquiesces when I ask), Gates has an intensity and enthusiasm that can be engaging, even charming. He takes a piece of paper and draws the matrix of strategies he faced when creating applications to compete with WordPerfect and Lotus. See what an exciting puzzle it was? His language is boyish rather than belligerent. The right stuff is "really neat" and "supercool" and "hardcore," while bad strategies are "crummy" and "really dumb" and "random to the max."
His office is rather modest, sparsely decorated and filled with standard-issue furniture. The biggest piece of art is a huge photo of a Pentium processor chip. There are smaller pictures of Einstein, Leonardo da Vinci and Henry Ford, though he admits that he has little admiration for the latter. The few personal pictures include one of the original dozen Microsoft employees (most with scruffy beards, except him), one of Ann Winblad on a trip to Germany, and one with Melinda and nine friends on a 1995 vacation to Indonesia. There are no pictures of Jennifer displayed, but he pulls a snapshot out of his desk showing him proudly cradling her.
He hopes to be running Microsoft for another 10 years, he says, then promises to focus as intensely on giving his money away. He says he plans to leave his children about $10 million each. "He will spend time, at some point, thinking about the impact his philanthropy can have," Buffett says. "He is too imaginative to just do conventional gifts." Already he's given $34 million to the University of Washington, partly to fund a chair for human genome-project researcher Leroy Hood; $15 million (along with $10 million from Ballmer) for a new computer center at Harvard; and $6 million to Stanford. An additional $200 million is in a foundation run by his father, and he has talked about taking over personally the funding of Microsoft's program to provide computers to inner-city libraries, to which he's donated $3 million in book royalties. "I've been pushing him gently to think more about philanthropy," his father says. "I think his charitable interests will run, as they do now, to schools and libraries."
Asked about his regrets, Gates talks about not getting a Microsoft E-mail application to the market quickly enough. "We were too busy, and at a retreat where I wrote our next priorities on a board, everyone said I had to take one off, so we took off E-mail."