The Meeting That Created Bloomberg
“Mandatory Attendance: Utmost Secrecy Required.”
Good morning, everyone.
This week’s newsletter includes: the story of Michael Bloomberg getting fired and putting his entire severance pay into his start-up.
Michael Bloomberg and the “Yes, But” Framework
Michael Bloomberg was brutally fired from one of the most prestigious and high-paying jobs on Wall Street. It turned out to be the best thing that ever happened to him...
One hot summer night in 1981, Salomon Brothers’ partners were summoned to a secretive meeting marked:
“Mandatory Attendance: Utmost Secrecy Required.”
At the time, Salomon was one of the most powerful investment banks in the world.
But change was in the air.
Just days earlier, the firm had been acquired by energy trading giant Phibro Corporation, and rumours of layoffs were swirling through the corridors.
Everyone knew that this meeting could end careers.
The atmosphere inside the firm was suffocating.
John Gutfreund, Salomon’s hard-nosed Managing Partner, called Michael into a side room and gave it to him straight:
After 15 years at the firm, his time was up.
No explanations. No negotiation.
Michael was devastated:
“With 15 years of service - it was embarrassing, none of my friends got fired...it was hurtful and unfair.”
One moment, a rising figure at a Wall Street powerhouse.
The next, unemployed.
His career and identity seemed to vanish in an instant.
But instead of retreating, Michael acted.
The very next day, he decided to risk it all...
Michael took his his entire severance pay and invested every dollar into a new venture: putting financial data directly onto computer screens so traders could see it instantly.
From idea - to prototype - to product.
His effort and investment became the Bloomberg Terminal: a revolutionary product that would reshape finance.
From that single decision, Bloomberg LP grew into a global powerhouse spanning media, data, and technology - serving millions of customers worldwide.
Looking back decades later, Michael smiled:
“Thank goodness they fired me!”
Recommendation’s
Awesome interview with Michael from 2007 is here. A fantastic quote: “Of all the people on the Salomon Brothers Executive Committee who fired me...6 are now paying customers of Bloomberg - so thank you very much!”
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Joseph Cass