Sometimes your mom really does know best. Bill Gates learned that lesson in 1991 when he nearly bailed on meeting Warren Buffett, thinking he'd spend an entire day listening to someone drone on about P/E ratios when he had a software company to run.

Why Would a Tech Guy Want to Meet a Stock Picker?

In a 1996 Harvard Business Review essay, Gates admitted he couldn't see the point of taking time away from Microsoft to chat with a famous investor. The whole thing sounded like a networking obligation rather than anything genuinely useful. But then he learned that Katharine Graham, the Washington Post publisher whose leadership he deeply respected, would be there too. That changed the equation.

When they finally sat down on July 5, 1991, at the Gates family's weekend home, Buffett surprised him. Instead of stock talk, Buffett wanted to discuss newspapers, IBM (IBM), and how entire industries transform over time. "He asked good questions and told educational stories. There's nothing I like so much as learning," Gates wrote. He'd never encountered anyone who could dissect business with such clarity.

The Exercise That Kept Gates All Day

Buffett also introduced Gates to one of his favorite mental exercises: pick any year, write down the 10 most valuable companies, then fast-forward about 20 years and see which ones survived. Simple concept, but it reveals everything about competitive advantage and long-term thinking.

Gates found Buffett's enthusiasm infectious. He'd planned to escape after a polite hour or two. Instead, he stayed the entire day. He even agreed to fly out to Nebraska later to catch a football game with him.

Learning Machines Build Lasting Partnerships

That shared appetite for learning eventually grew beyond business conversations. The two teamed up on philanthropy through the Bill & Melinda Gates Foundation and Buffett's Giving Pledge, both emphasizing long-term thinking over quick wins. Charlie Munger once called Buffett a "learning machine," noting how he spends most of each day reading. Gates clearly recognized a kindred spirit.

Stepping Back From the Stage

The parallels continued as both men began stepping away from their day-to-day roles. Gates resigned from the Microsoft board in 2020. Around the same time, Buffett started pulling back from center stage at Berkshire Hathaway Inc. (BRK.A) (BRK.B). In a Thanksgiving letter released this week, the 95-year-old Buffett told Berkshire Hathaway shareholders he'll no longer write the company's annual report or hold forth for hours at meetings. He's "going quiet. Sort of," as he put it.

Not bad for a friendship that almost never happened because one guy didn't want to talk about stocks.