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Friday, July 30, 2004

I have been reading a bit today about Microsoft's finances.  Do you have any idea how much money they make?  Staggering.  Microsoft is set to gross about $45 billion this year.  Not bad.  But when you consider that they only have 60,000 employees it is absolutely staggering.  That works out such that each employee has to generate $750,000 worth of value.  ...even the people in HR!

Also think about how much of that money is profit - something like $15 billion.  That is very rare.  Most companies that size have nowhere near that ratio of profit to expenses.  Microsoft only has such a high ratio because of the quality of people it has employed.  Simple as that.  They are not selling cars or toys or things that cost a lot to produce (per unit).  They are selling ideas.  If those ideas are not coming from people who are very bright - Microsoft would be out of business in 20 years.

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