How Bill Gates earned his money

It’s not Microsoft which made bill gates the richest person.

It’s “Cascade Investments” owned by bill gates and controlled by Michael Larson. Made him his fortune.

Bill Gates is worth an astounding $81.6 billion and he keeps getting richer every year.

At one time, Gates wealth depended solely on Microsoft. But for years he's been selling off his Microsoft stake. The common perception is that he's been using the proceeds from those sales directly for charity. That's not entirely how it works

It is Larson, though Cascade, who has taken Gate's money and diversified it. Gates now has vast holdings in real estate and non-tech companies like the Canadian National Railway Co., AutoNation Inc., and Republic Services Inc. It is these vast holdings that helps fund the Gates' donations.More to know about larson.

Michael Larson.

Gates hired Larson 20 years ago, when his net worth was a relatively paltry $5 billion, .He runs gates personal investment  company called Cascade investment.

At one time, Gates wealth depended solely on Microsoft. But for years he's been selling off his Microsoft stake.  

Although Gates makes his own investments in tech, it is Larson, though Cascade, who has taken Gate's money and diversified it. Bill gates  took the company public in 1986

His 40 percent ownership of Microsoft shares made his net worth $390 million by June 1986.

Gates had effectively cornered the market for operating software for the vast majority of personal computers (PCs) as well as developing a wide range of other popular programs. He effectively became a billionaire in March 1987, when his company's stock rose to $90.75 per share, up from $21.50 per share when the company went public. Brian O'Reilly commented a few months later in Fortune, "[Gates] apparently has made more money than anyone else his age, ever, in any business" (October 12, 1987)

He is not even the highest Share Holder in Microsoft.

Cascade Investment, LLC is an American holding and investment company headquartered in Kirkland, Washington, United States. It is controlled by Bill Gates, and managed by Michael Larson. More than half of Gates' fortune is held in assets outside his holding of Microsoft shares. Cascade is the successor company to Dominion Income Management, the former investment vehicle for Gates' holdings, which was managed by Andrew Evans

List of investments and companies.

The company describes itself as a diversified investment company. Its investments include:

• Arcos Dorados Holdings - 6.65%
• AutoNation
• Berkshire Hathaway
• Canadian National Railway - 12% Stake 
• Carpetright
• Coca Cola Femsa SAB de CV - 20% stake
• Dante-O-Giovanni Corporation
• Ecolab 11% 
• ElBarbary Investment Group
• FEMSA (Mexican brewer)
• Four Seasons Hotels and Resorts - 47.5% Stake 
• ICOS
• John Deere - 8.3%
• Liberty Global - 4.1% 
• Microsoft Corporation
• Newport News Shipbuilding
• Nimbus Discovery
• OANDA Corporation
• Otter Tail Power Company^[
• Pan American Silver Corporation
• Republic Services, Inc - U.S. waste management - 20-29% (estimated)
• Sapphire Energy
• Schrödinger
• Schnitzer Steel Industries
• Scient
• Televisa 
• Waste Management, Inc
• Wisconsin Central Transportation

UPDATE(2014)

Back in 2007, Microsoft invested $240 million in Facebook for a 1.6 percent stake. It valued Facebook at $15 billion, and everybody laughed.

Now, Facebook is worth over $200 billion, and that little investment turns out to be the best-performing equity investment Steve Ballmer ever made as CEO of Microsoft. 

^{sources - wikipedia,Business insider.}