Outliers (6 page)

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Authors: Malcolm Gladwell

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BOOK: Outliers
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Seven days a week?

The Beatles ended up traveling to Hamburg five times between 1960 and the end of 1962. On the first trip, they played 106 nights, five or more hours a night. On their second trip, they played 92 times. On their third trip, they played 48 times, for a total of 172 hours on stage. The last two Hamburg gigs, in November and December of 1962, involved another 90 hours of performing. All told, they performed for 270 nights in just over a year and a half. By the time they had their first burst of success in 1964, in fact, they had performed live an estimated twelve hundred times. Do you know how extraordinary that is? Most bands today don’t perform twelve hundred times in their entire careers. The Hamburg crucible is one of the things that set the Beatles apart.

“They were no good onstage when they went there and they were very good when they came back,” Norman went on. “They learned not only stamina. They had to learn an enormous amount of numbers—cover versions of everything you can think of, not just rock and roll, a bit of jazz too. They weren’t disciplined onstage at all before that. But when they came back, they sounded like no one else. It was the making of them.”

5.

Let’s now turn to the history of Bill Gates. His story is almost as well known as the Beatles’. Brilliant, young math whiz discovers computer programming. Drops out of Harvard. Starts a little computer company called Microsoft with his friends. Through sheer brilliance and ambition and guts builds it into the giant of the software world. That’s the broad outline. Let’s dig a little bit deeper.

Gates’s father was a wealthy lawyer in Seattle, and his mother was the daughter of a well-to-do banker. As a child Bill was precocious and easily bored by his studies. So his parents took him out of public school and, at the beginning of seventh grade, sent him to Lakeside, a private school that catered to Seattle’s elite families. Midway through Gates’s second year at Lakeside, the school started a computer club.

“The Mothers’ Club at school did a rummage sale every year, and there was always the question of what the money would go to,” Gates remembers. “Some went to the summer program, where inner-city kids would come up to the campus. Some of it would go for teachers. That year, they put three thousand dollars into a computer terminal down in this funny little room that we subsequently took control of. It was kind of an amazing thing.”

It was an “amazing thing,” of course, because this was 1968. Most
colleges
didn’t have computer clubs in the 1960s. Even more remarkable was the kind of computer Lakeside bought. The school didn’t have its students learn programming by the laborious computer-card system, like virtually everyone else was doing in the 1960s. Instead, Lakeside installed what was called an ASR-33 Teletype, which was a time-sharing terminal with a direct link to a mainframe computer in downtown Seattle. “The whole idea of time-sharing only got invented in nineteen sixty-five,” Gates continued. “Someone was pretty forward-looking.” Bill Joy got an extraordinary, early opportunity to learn programming on a time-share system as a freshman in college, in 1971. Bill Gates got to do real-time programming
as an eighth grader in 1968
.

From that moment forward, Gates lived in the computer room. He and a number of others began to teach themselves how to use this strange new device. Buying time on the mainframe computer the ASR was hooked up to was, of course, expensive—even for a wealthy institution like Lakeside—and it wasn’t long before the $3,000 put up by the Mothers’ Club ran out. The parents raised more money. The students spent it. Then a group of programmers at the University of Washington formed an outfit called Computer Center Corporation (or C-Cubed), which leased computer time to local companies. As luck would have it, one of the founders of the firm—Monique Rona—had a son at Lakeside, a year ahead of Gates. Would the Lakeside computer club, Rona wondered, like to test out the company’s software programs on the weekends in exchange for free programming time? Absolutely! After school, Gates took the bus to the C-Cubed offices and programmed long into the evening.

C-Cubed eventually went bankrupt, so Gates and his friends began hanging around the computer center at the University of Washington. Before long, they latched onto an outfit called ISI (Information Sciences Inc.), which agreed to let them have free computer time in exchange for working on a piece of software that could be used to automate company payrolls. In one seven-month period in 1971, Gates and his cohorts ran up 1,575 hours of computer time on the ISI mainframe, which averages out to eight hours a day, seven days a week.

“It was my obsession,” Gates says of his early high school years. “I skipped athletics. I went up there at night. We were programming on weekends. It would be a rare week that we wouldn’t get twenty or thirty hours in. There was a period where Paul Allen and I got in trouble for stealing a bunch of passwords and crashing the system. We got kicked out. I didn’t get to use the computer the whole summer. This is when I was fifteen and sixteen. Then I found out Paul had found a computer that was free at the University of Washington. They had these machines in the medical center and the physics department. They were on a twenty-four-hour schedule, but with this big slack period, so that between three and six in the morning they never scheduled anything.” Gates laughed. “I’d leave at night, after my bedtime. I could walk up to the University of Washington from my house. Or I’d take the bus. That’s why I’m always so generous to the University of Washington, because they let me steal so much computer time.” (Years later, Gates’s mother said, “We always wondered why it was so hard for him to get up in the morning.”)

One of the founders of ISI, Bud Pembroke, then got a call from the technology company TRW, which had just signed a contract to set up a computer system at the huge Bonneville Power station in southern Washington State. TRW desperately needed programmers familiar with the particular software the power station used. In these early days of the computer revolution, programmers with that kind of specialized experience were hard to find. But Pembroke knew exactly whom to call: those high school kids from Lakeside who had been running up thousands of hours of computer time on the ISI mainframe. Gates was now in his senior year, and somehow he managed to convince his teachers to let him decamp for Bonneville under the guise of an independent study project. There he spent the spring writing code, supervised by a man named John Norton, who Gates says taught him as much about programming as almost anyone he’d ever met.

Those five years, from eighth grade through the end of high school, were Bill Gates’s Hamburg, and by any measure, he was presented with an even more extraordinary series of opportunities than Bill Joy.

Opportunity number one was that Gates got sent to Lakeside. How many high schools in the world had access to a time-sharing terminal in 1968? Opportunity number two was that the mothers of Lakeside had enough money to pay for the school’s computer fees. Number three was that, when that money ran out, one of the parents happened to work at C-Cubed, which happened to need someone to check its code on the weekends, and which also happened not to care if weekends turned into weeknights. Number four was that Gates just happened to find out about ISI, and ISI just happened to need someone to work on its payroll software. Number five was that Gates happened to live within walking distance of the University of Washington. Number six was that the university happened to have free computer time between three and six in the morning. Number seven was that TRW happened to call Bud Pembroke. Number eight was that the best programmers Pembroke knew for that particular problem happened to be two high school kids. And number nine was that Lakeside was willing to let those kids spend their spring term miles away, writing code.

And what did virtually all of those opportunities have in common? They gave Bill Gates extra time to practice. By the time Gates dropped out of Harvard after his sophomore year to try his hand at his own software company, he’d been programming practically nonstop for seven consecutive years. He was
way
past ten thousand hours. How many teenagers in the world had the kind of experience Gates had? “If there were fifty in the world, I’d be stunned,” he says. “There was C-Cubed and the payroll stuff we did, then TRW—all those things came together. I had a better exposure to software development at a young age than I think anyone did in that period of time, and all because of an incredibly lucky series of events.”

6.

If we put the stories of hockey players and the Beatles and Bill Joy and Bill Gates together, I think we get a more complete picture of the path to success. Joy and Gates and the Beatles are all undeniably talented. Lennon and McCartney had a musical gift of the sort that comes along once in a generation, and Bill Joy, let us not forget, had a mind so quick that he was able to make up a complicated algorithm on the fly that left his professors in awe. That much is obvious.

But what truly distinguishes their histories is not their extraordinary talent but their extraordinary opportunities. The Beatles, for the most random of reasons, got invited to go to Hamburg. Without Hamburg, the Beatles might well have taken a different path. “I was very lucky,” Bill Gates said at the beginning of our interview. That doesn’t mean he isn’t brilliant or an extraordinary entrepreneur. It just means that he understands what incredible good fortune it was to be at Lakeside in 1968.

All the outliers we’ve looked at so far were the beneficiaries of some kind of unusual opportunity. Lucky breaks don’t seem like the exception with software billionaires and rock bands and star athletes. They seem like the rule.

Let me give you one final example of the hidden opportunities that outliers benefit from. Suppose we do another version of the calendar analysis we did in the previous chapter with hockey players, only this time looking at birth years, not birth months. To start with, take a close look at the following list of the seventy-five richest people in human history. The net worth of each person is calculated in current US dollars. As you can see, it includes queens and kings and pharaohs from centuries past, as well as contemporary billionaires, such as Warren Buffett and Carlos Slim.

No.
Name
Wealth in Billions (USD)
Origin
Company or Source of Wealth
1
John D. Rockefeller
318.3
United States
Standard Oil
2
Andrew Carnegie
298.3
Scotland
Carnegie Steel Company
3
Nicholas II of Russia
253.5
Russia
House of Romanov
4
William Henry Vanderbilt
231.6
United States
Chicago, Burlington and Quincy Railroad
5
Osman Ali Khan, Asaf Jah VII  
210.8
Hyderabad
Monarchy
6
Andrew W. Mellon
188.8
United States
Gulf Oil
7
Henry Ford
188.1
United States
Ford Motor Company
8
Marcus Licinius Crassus
169.8
Roman Republic
Roman Senate
9
Basil II
169.4
Byzantine Empire   
Monarchy
10
Cornelius Vanderbilt
167.4
United States
New York and Harlem Railroad
11
Alanus Rufus
166.9
England
Investments
12
Amenophis III
155.2
Ancient Egypt
Pharaoh
13
William de Warenne, 1st Earl of Surrey   
153.6
England
Earl of Surrey
14
William II of England
151.7
England
Monarchy
15
Elizabeth I
142.9
England
House of Tudor
16
John D. Rockefeller Jr.
141.4
United States
Standard Oil
17
Sam Walton
128.0
United States
Wal-Mart
18
John Jacob Astor
115.0
Germany
American Fur Company
19
Odo of Bayeux
110.2
England
Monarchy
20
Stephen Girard
99.5
France
First Bank of the United States
21
Cleopatra
95.8
Ancient Egypt
Ptolemaic Inheritance
22
Stephen Van Rensselaer III
88.8
United States
Rensselaerswyck Estate
23
Richard B. Mellon
86.3
United States
Gulf Oil
24
Alexander Turney Stewart
84.7
Ireland
Long Island Rail Road
25
William Backhouse Astor Jr.
84.7
United States
Inheritance
26
Don Simon Iturbi Patiño
81.2
Bolivia
Huanuni tin mine
27
Sultan Hassanal Bolkiah
80.7
Brunei
Kral
28
Frederick Weyerhaeuser
80.4
Germany
Weyerhaeuser Corporation
29
Moses Taylor
79.3
United States
Citibank
30
Vincent Astor
73.9
United States
Inheritance
31
Carlos Slim Helú
72.4
Mexico
Telmex
32
T. V. Soong
67.8
China
Central Bank of China
33
Jay Gould
67.1
United States
Union Pacific
34
Marshall Field
66.3
United States
Marshall Field and Company
35
George F. Baker
63.6
United States
Central Railroad of New Jersey
36
Hetty Green
58.8
United States
Seaboard National Bank
37
Bill Gates
58.0
United States
Microsoft
38
Lawrence Joseph Ellison
58.0
United States
Oracle Corporation
39
Richard Arkwright
56.2
England
Derwent Valley Mills
40
Mukesh Ambani
55.8
India
Reliance Industries
41
Warren Buffett
52.4
United States
Berkshire Hathaway
42
Lakshmi Mittal
51.0
India
Mittal Steel Company
43
J. Paul Getty
50.1
United States
Getty Oil Company
44
James G. Fair
47.2
United States
Consolidated Virginia Mining Company
45
William Weightman
46.1
United States
Merck & Company
46
Russell Sage
45.1
United States
Western Union
47
John Blair
45.1
United States
Union Pacific
48
Anil Ambani
45.0
India
Reliance Communications
49
Leland Stanford
44.9
United States
Central Pacific Railroad
50
Howard Hughes Jr.
43.4
United States
Hughes Tool Company, Hughes Aircraft Company, Summa Corporation, TWA
51
Cyrus Curtis
43.2
United States
Curtis Publishing Company
52
John Insley Blair
42.4
United States
Delaware, Lackawanna and Western Railroad
53
Edward Henry Harriman
40.9
United States
Union Pacific Railroad
54
Henry H. Rogers
40.9
United States
Standard Oil Company
55
Paul Allen
40.0
United States
Microsoft, Vulcan Inc.
56
John Kluge
40.0
Germany
Metropolitan Broadcasting Company
57
J. P. Morgan
39.8
United States
General Electric, US Steel
58
Oliver H. Payne
38.8
United States
Standard Oil Company
59
Yoshiaki Tsutsumi
38.1
Japan
Seibu Corporation
60
Henry Clay Frick
37.7
United States
Carnegie Steel Company
61
John Jacob Astor IV
37.0
United States
Inheritance
62
George Pullman
35.6
United States
Pullman Company
63
Collis Potter Huntington
34.6
United States
Central Pacific Railroad
64
Peter Arrell Brown Widener
33.4
United States
American Tobacco Company
65
Philip Danforth Armour
33.4
United States
Armour Refrigerator Line
66
William S. ÓBrien
33.3
United States
Consolidated Virginia Mining Company
67
Ingvar Kamprad
33.0
Sweden
IKEA
68
K. P. Singh
32.9
India
DLF Universal Limited
69
James C. Flood
32.5
United States
Consolidated Virginia Mining Company
70
Li Ka-shing
32.0
China
Hutchison Whampoa Limited
71
Anthony N. Brady
31.7
United States
Brooklyn Rapid Transit
72
Elias Hasket Derby
31.4
United States
Shipping
73
Mark Hopkins
30.9
United States
Central Pacific Railroad
74
Edward Clark
30.2
United States
Singer Sewing Machine
75
Prince Al-Waleed bin Talal
29.5
Saudi Arabia
Kingdom Holding Company

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