Back to #431 How Henry Singleton Worked.
Why Did Henry Singleton Invest in Apple?
David Senra, reading the book's account, says Henry Singleton invested in Apple because most of the millions of expected computer customers would feel intimidated at first, and nobody would feel intimidated by a computer named Apple. The other startups, if they failed, would just walk away. Apple's founders had to make good.
A sudden advance in technology had made low-priced, high-powered computers that millions of people could buy. Numerous companies started to produce them, and most failed. Singleton helped finance Apple. Asked how he picked Apple when the new computer startups looked alike, he pointed to the name and to founders who could not walk away.
Many people who saw his analytical business decisions assumed he was a pure numbers guru, uninterested in the people factor in investments. The Apple investment cuts against that assumption, because the choice turned on how customers would feel and whether the founders had to succeed.