Case Study Two
Bill Gate’s Philanthropy Capstone
Driven by Optimisation
“I am looking forward to this next phase as an opportunity to maintain the friendships and partnerships that have meant the most to me, continue to contribute to two companies of which I am incredibly proud, and effectively prioritise my commitment to addressing some of the world's toughest challenges.” — Bill Gates
When You See the Shift
In March 2020, at the age of 64, Bill Gates stepped down from the boards of Microsoft and Berkshire Hathaway. It was a clear signal: his transition into the Capstone phase was now complete. While he had shown glimpses of Capstone thinking throughout his life, this moment formalised his shift from corporate to full-time philanthropy.
Gates’ story is an extreme example of the “Classical Order” of Capstones:
Cornerstone → Keystone → Capstone.
From gifted student to world’s richest man, and now, one of the most influential philanthropists in history — his Capstone is not about inspiration. It’s about optimisation.
Ten Things About This Capstone
Bill’s journey exemplifies the classical order of Capstone Thinking: Cornerstone, Keystone, Capstone.
The Gates Foundation is one of the most ambitious philanthropic organisations in history.
Its north star is clear: every life has equal value.
Gates’s mission isn’t to inspire, but to optimise.
If you’re Warren Buffett, who do you trust to optimise your own philanthropic giving?
Gates is not perfect — but one has to believe his intentions are good.
The Foundation tests ideas governments can’t or won’t fund.
Melinda French Gates’s evolving focus reminds us that Capstones evolve too.
Gates co-founded the Giving Pledge, setting a blueprint for future philanthropists.
The key is to support people like Gates so they can stay focused on solving global challenges.
Cornerstone Phase: Foundations of a Technologist
Born in 1955, Gates had the fortune of attending a school with rare access to computers. As Morgan Housel noted in The Psychology of Money, “One in a million high-school-age students attended the high school that had the combination of cash and foresight to buy a computer. Bill Gates happened to be one of them.”
At school, he and Paul Allen — his future co-founder at Microsoft — built scheduling and payroll systems and read Fortune magazine for fun. Their childhood was defined by a hunger to solve problems and a desire to shape the future. That hunger would soon take on scale.
Keystone Phase:
Building Microsoft — and Wealth
In 1975, at just 20, Gates co-founded Microsoft. He would go on to lead the company for decades, becoming the world’s richest man in 1995. In 1999, Microsoft became the world’s most valuable company. During this period, Gates was a self-professed workaholic — though he argued it never felt like work.
He stepped down as CEO in 2000 but stayed involved as Chairman and Chief Software Architect. It wasn’t until 2008 that Gates fully stepped back from day-to-day operations. This was the beginning of his pivot — what we call moving from an executive to portfolio career.
Yet not everything about his keystone was admirable. Gates has been called out for aggressive business tactics and monopolistic behaviours. He was, in many ways, a product of his environment — building an empire with the same relentlessness with which he now approaches global health.
His keystone mission?
“A computer on every desk and in every home.”
Capstone Phase:
A Problem-Solver’s Ultimate Playground
In 1993, on holiday in Africa with Melinda, the couple began to talk about giving back. This early awareness became real action in 1994, when they created the William H. Gates Foundation — focused on global health and run by Bill’s father. It would eventually merge into the Bill & Melinda Gates Foundation in 2000.
The mission?
“Every person deserves the chance to live a healthy and productive life.”
The Foundation now renamed as the Gates Foundation, has over 2,000 staff and has distributed $70+ billion to date — with figures so large, even the fact sheet on the Foundation’s website ‘rounds to the nearest hundred million’ when reporting figures.
Melinda described their philanthropic work as the “exciting phase” of their life — a chance to build something together. Yet it wasn’t enough to keep them together. The Foundation became a joint Capstone, but their marriage ended in 2021. In 2024, Melinda stepped away to focus on women’s rights and equity saying:
“Set your own agenda, or someone else will set it for you.”
What We Learn From Gates’s Capstone
1. Timing Matters
Gates timed his full transition to philanthropy in March 2020 — at the onset of COVID-19. Five years earlier, he had warned the world of the next big threat: a global pandemic. Now he was stepping into the arena.
Capstones often emerge from conviction and crisis. For Gates, the crisis aligned perfectly with his core skill: solving complex global problems.
2. Knowing ‘When is Enough’
Gates once earned an estimated $114 per second — making it theoretically not worth his time to pick up a $100 bill. Yet he’s clear:
“I don’t do things to inspire. I do optimisation.”
Wealth was a by-product of his problem-solving ability. He’s now applying those same skills to human suffering.
3. Being Clear On Role and Scope
The Foundation focuses on two things:
Global: helping the world’s poorest escape disease and poverty
Local (U.S.): equalising opportunity through education
“Businesses have fiduciary duties. Foundations can test ideas that others won’t try.”
Bill thrives on complexity. He’s not afraid to challenge governments or outdated systems.
“I like to push the levels of risk... to do things that wouldn’t happen without leadership and vision.”
4. Building With the Right People
The Foundation became a true partnership with Melinda.
“We built this thing together as partners from the beginning.”
Bill wax data-driven. Melinda was people-driven. They were aligned on science, but approached it from different angles — creating balance. The ending of their marriage doesn’t erase the power and potential of what they built.
5. OKRs — A Framework for Focus
Gates has credited Objectives and Key Results (OKRs) as a core tool for philanthropy.
“A mission is directional. An objective is concrete.”
OKRs help him move from ambition to action — a theme we explore in later chapters in the Capstones book.
6. Trusting Others to Amplify Impact
Warren Buffett joined the Foundation as a trustee and major donor in 2006. His logic?
“Let the best stewards multiply my impact.”
Buffett’s backing is a signal to the world: this is where smart capital goes to solve humanity’s biggest problems.
The Giving Pledge:
Scaling the Capstone Philosophy
In 2010, Gates and Buffett launched the Giving Pledge — urging billionaires to donate at least half their wealth in their lifetime or through their will. By 2020, over 200 people from 23 countries had pledged more than $600 billion.
“Swing for the fences,” Buffett told us. And we are.” — Bill Gates
Conclusion: Let Bill Gates Crack On
Bill Gates’s Capstone is not a PR campaign. It’s not about feel-good stories. It’s about getting results.
In 2000, the global community — with the Gates Foundation as a founding partner — launched Gavi, the Vaccine Alliance. Since then, Gavi and its partners have helped immunise over 1 billion children. Few interventions in this world can match that impact. Since its founding, the global death rate for children under five has dropped by more than 50% — a staggering shift, driven in large part by access to vaccines.
Capstones aren’t about perfect people. They’re about imperfect people who decide to go all in.
Let’s not waste time critiquing the man solving problems the rest of the world wouldn’t dare take on. Let him optimise. The world will thank him later.