Which stock is it about? Anthony Scaramucci is primarily known today as the White House communications director, who was removed from office by President Donald Trump after just ten days. However, Scaramucci is also an experienced hedge fund manager and father.
In 1992, the American had the idea to open an account for his son. He linked Microsoft shares worth $1,200 to this account. He instructed the bank to reinvest all dividends from these shares immediately. This is quite remarkable, as Microsoft had not yet paid any dividends at that time.
Out of sight, out of mind, into the account
What happened then? Nowadays, a smartphone would keep you updated in real-time about your investments. However, 1992 was a very different time. Scaramucci’s life went on: moves here, address changes there, paperwork elsewhere… at some point, the manager simply forgot the investment, and the bank lost track of its customer.
It was only “26 or 27 years later” that Scaramucci stumbled across the account documents by chance. He and his son could hardly believe how much the amount had grown over the years:
I think I initially announced that the amount had increased by $88,000, but my son said, ‘No, Dad, it’s increased by $288,000!’
Scaramucci in an interview with Benzinga
The investment had increased nearly 240 times, reflecting Microsoft’s development over the past three decades. Three factors, in particular, had a positive effect:
- Since 2003, Microsoft has been paying dividends regularly, which the bank has reinvested immediately as per the agreement.
- Between 1992 and 2025, Microsoft conducted so-called stock splits, which gradually increased the number of shares owned by Scaramucci without his involvement.
- By forgetting the investment, Scaramucci allowed the money to work for nearly 30 years. He himself said in the interview that he would have probably sold the shares during Microsoft’s stagnation under Steve Ballmer, which would have cost the family a significant amount of money.
Many employees from Microsoft’s early years also significantly benefited from the increasing value of Microsoft shares. A certain Gabe Newell, for example, had the means to establish a company with Valve and a platform with Steam that has shaped the gaming industry like few others for many years: Gabe Newell is considered one of the most important figures in gaming, but who is he, really?
