On Risk Aversion

A century earlier, Henry Ford started his automotive empire while employed as a chief engineer for Thomas Edison, which gave him the security necessary to try out his novel inventions for a car. He continued working under Edison for two years after building a carburetor and a year after earning a patent for it. And what about Bill Gates, famous for dropping out of Harvard to start Microsoft? When Gates sold a new software program as a sophomore, he waited an entire year before leaving school. Even then he didn’t drop out, but balanced his risk portfolio by applying for a leave of absence that was formally approved by the university—and by having his parents bankroll him. “Far from being one of the world’s great risk takers,” entrepreneur Rick Smith notes, “Bill Gates might more accurately be thought of as one of the world’s great risk mitigators.”

Excerpt from Originals: How Non-Conformists Move the World