Michael Bloomberg: Building an Empire, Leading New York and Giving Away Billions
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features an intimate conversation between Nicolai Tangen, CEO of the Norwegian Sovereign Wealth Fund, and Michael Bloomberg, the legendary entrepreneur, former mayor, and philanthropist. Bloomberg shares his remarkable journey from a middle-class upbringing in Massachusetts to building Bloomberg LP into a financial information empire after being laid off from Salomon Brothers. (01:00) The discussion covers his innovative approach to creating the Bloomberg Terminal when personal computers didn't exist, requiring him to build custom hardware in an engineer's barn. Bloomberg reflects on his twelve years as mayor of New York City, where he significantly improved education outcomes and increased life expectancy by three years. (20:27) The conversation concludes with insights into his philanthropic philosophy, having given away over $20 billion, and his commitment to lifelong learning, including studying Spanish irregular verbs at age 83. (31:02) • Main themes include entrepreneurial innovation, leadership principles focused on employee care, public service impact, and strategic philanthropy aimed at systemic change
Speakers
Michael Bloomberg
Michael Bloomberg is the founder and majority owner of Bloomberg LP, a global financial, software, data, and media company. He served as the 108th Mayor of New York City for twelve years (2002-2013), where he significantly improved education outcomes and public health. At 83, he remains one of America's most prominent philanthropists, having given away over $20 billion through Bloomberg Philanthropies to causes including education, public health, the environment, and the arts.
Nicolai Tangen
Nicolai Tangen is the CEO of Norges Bank Investment Management, which manages the Norwegian Government Pension Fund Global (commonly known as the Norwegian Sovereign Wealth Fund). As host of "In Good Company," he conducts in-depth conversations with global business leaders and influential figures to explore their leadership philosophies, career journeys, and insights on building successful organizations.
Key Takeaways
Choose Purpose Over Paycheck When Starting Your Career
Bloomberg famously chose Salomon Brothers over Goldman Sachs despite a $5,000 salary difference, selecting the company where he liked the people better. (03:03) He negotiated from $9,000 to $11,500 by explaining his budget needs and viewing the difference as a loan rather than immediate compensation. This decision shaped his entire career trajectory, as the experience at Salomon directly led to his understanding of trading desk needs and the eventual creation of Bloomberg LP. The key insight is that early career decisions should prioritize learning opportunities, relationship building, and skill development over immediate financial gain.
Build What Customers Need, Not What They Ask For
Bloomberg's revolutionary approach was to focus on building useful functionality rather than simply listening to customer requests. (07:34) He observed that trading desks had screens showing stock and bond prices but lacked tools to actually use that data for calculations, graphing, or messaging. Instead of asking customers what they wanted, he watched how they tried to use existing tools and identified gaps they couldn't articulate. This led to creating the Bloomberg Terminal before anyone knew they needed it, giving them a three-year head start before competitors could catch up.
Invest in Your People and Physical Environment
Bloomberg deliberately chooses expensive, high-quality office locations and facilities because he views employees as the company's most important asset. (13:23) He personally calls employees who are injured or facing family emergencies, even with 26,000 staff members, often requiring translators for different languages. (15:59) This investment in both physical space and personal attention creates pride, loyalty, and low attrition rates. The philosophy is that people should feel proud of where they work and be able to bring friends to see their workplace environment.
Give Credit Away to Build Stronger Teams
Bloomberg teaches a counterintuitive leadership principle: when asked "Who built that?" never say "me" - instead, credit others and say you were lucky to help them. (16:42) While everyone knows this isn't entirely true, it achieves two powerful outcomes: people think better of you for giving credit elsewhere, and the person you credited now owes you something, creating a positive cycle of reciprocity. This approach builds stronger relationships and loyalty within teams while demonstrating confident, secure leadership.
Encourage Risk-Taking by Removing Failure Penalties
Bloomberg creates a culture where trying new ideas is rewarded regardless of outcome. (12:55) When employees want to try unconventional approaches, even ones Bloomberg doubts will work, he encourages them to proceed. Most importantly, if initiatives fail, he ensures the person is seen publicly joking and walking with him to signal that taking risks doesn't damage careers. This policy of "no penalty for failure, plus points for trying" encourages innovation and prevents the paralysis that comes from fear of making mistakes.
Statistics & Facts
- Bloomberg's father made $6,000 in his best year as a bookkeeper, establishing the modest family background that shaped Bloomberg's values and work ethic. (01:12)
- During Bloomberg's tenure as mayor, the average life expectancy in New York City increased by three years, demonstrating the measurable impact of his public health and safety policies. (20:27)
- Bloomberg Philanthropies has given away over $20 billion, with Bloomberg stating he gives away virtually all the profits of his company to various causes including education, health, and environmental initiatives. (23:25)
