Apple's Lost Billionaire 💸

Back in 1976, Ronald Wayne sold his 10% stake in Apple for $800. Today, a similar stake in the tech giant would be worth close to $275 billion 💰.

Wayne was an engineer at Atari, one of the most popular gaming companies in the world back in the 1970s. On the afternoon of April 1, 1976, Steve Jobs and Steve Wozniak walked into Wayne’s house and decided to launch Apple 👨‍💻 two hours later.

The two Steves would receive a 45% stake in Apple, with Wayne ending with a 10% share. Wayne, who described himself as the adult in the room, would serve as a tie-breaker 🙅‍♂️ when Jobs and Wozniak disagreed on business decisions.

So, what went wrong?

Within 12 days, Wayne wanted out even though he believed in Apple and the two other co-founders. Steve Jobs bagged a contract with The Byte Shop soon after the partnership was drawn out and borrowed $15,000 💸 to fulfill the order.

However, The Byte Shop was infamous for not paying their bills. So, how would Apple repay the debt if the payment was not made? Well, Jobs and Woz were broke, so the liability would be borne by Wayne, who owned assets such as a house 🏘 and a car.

Moreover, Wayne’s slot machine business failed a few years back, and it took him over two years to get out of the financial mess. In a 2013 interview, Wayne emphasized, “I was getting too old, and those two were whirlwinds. It was like having a tiger by the tail, and I couldn't keep up with those guys.”

Did Ronald Wayne make the right decision?

Wayne doesn’t regret his decision, and for good reason. He basically teamed up with two inexperienced entrepreneurs to launch a risky 💀 business venture in what would be the bleeding edge of a new and disruptive industry.

The partnership agreement meant Wayne would face unlimited personal liability for any debts incurred by Apple. Further, Wayne was passionate about slot machines and not computers.

Hindsight bias might make it easy for you to question your judgment. But in 1976, Steve Jobs was just another guy with a big dream.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.