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Lesson: Capitalizing on a Tailwind
Microsoft benefitted from an unprecedented tailwind of the personal computer wave, with PCs growing at a rate of 98% annually from 1975 to 1986. This remarkable growth allowed them to build a successful company with minimal capital. The surge in PC demand also had a positive impact on Oracle's IPO success, which in turn, influenced Microsoft's IPO pricing. Such tailwinds are rare in history; a similar scenario occurred with Amazon leveraging the Internet's growth for their early success. In essence, Microsoft seized on a unique opportunity that significantly contributed to their prosperous journey.