In Silicon Valley lore, there's no greater story of rebellion than that of Apple
Shugart, who died earlier this week from complications during heart surgery, is the co-founder of disk drive maker Seagate
How? Rewind to 1973. As BusinessWeek writer and Silicon Valley chronicler Peter Burrows reports it, Shugart's legacy is already assured. He helped IBM
But by the next year, his luck runs out: Shugart Associates, the firm he created to market the floppy, fires him for allowing rivals to overtake his firm's early lead.
By 1979, Apple is mass-producing PCs. Former colleague Finis Connor takes notice and calls Shugart. His idea: Form a company to create a small-scale hard drive for PCs like the Apple II. Seagate is born.
Shortly thereafter, Shugart, Connor, and Jobs strike a deal: Apple agrees to buy hard drive parts for its computers, but gets to handle the electronics and assembly itself. So begins a journey of innovation that continues to this day at Seagate.
But Shugart hasn't always been on board for the ride; he was ousted from Seagate in 1998. That's the price of being a rebel. Shugart eschewed rigid schedules and coddled engineers as he sought the next big breakthrough in storage, Burrows writes.
And that same willingness to buck convention led Shugart to perform what, for my money, still ranks as the best stunt in the history of the Valley: Shugart ran his dog, Ernest, for Congress in 1996. Talk about a willingness to break the rules.
I own shares in Seagate today as much because of the legacy of Al Shugart as because the numbers add up to a compelling valuation. Tech investing can be like that; numbers rarely tell the whole story. Being a contributor to the Motley Fool Rule Breakers team, I'm always more likely to side with the Fool who unleashes massive value by toppling existing industries than the fool who waits for innovation to occur.
Al Shugart was a Fool in the finest sense -- a pirate of Silicon Valley long before the pirate flag flew over Apple's Cupertino headquarters. Rest easy, dear Rule Breaker. You will be missed.
More revolutionary Foolishness awaits:
- Go inside the case for hard drives.
- How's that for innovation?
- A little security shouldn't hurt Seagate.
How great is growth? Three of the dozens of stocks in the market-beating Motley Fool Rule Breakers portfolio have quadrupled in two years. Care to find out what they are?Click hereto get 30 days of free access to the service.
Fool contributor Tim Beyers , ranked 1,045 out of 17,491 in Motley Fool CAPS , enjoys a good tech rebellion. That's why he's the proud owner of a MacBook Pro, which he used to type this story. Tim owns shares of Seagate. Get the skinny on all of the stocks in his portfolio by checking Tim's Fool profile . The Motley Fool's disclosure policy is a rebel on Wall Street.
More from The Motley Fool
3 Stocks That Are Absurdly Cheap Right Now
This trio of investors thinks IBM, General Motors, and Seagate Technology could be bargains at today's prices.
How the 10 Top-Yielding Nasdaq Dividend Stocks Can Boost Your Portfolio
Even for income investors, dividends and yields shouldn't be the only factor in decisions about buying stocks.
Is the Stock Market Overpriced? Yes -- but Not These 3 Sectors
If you're looking for bargains in a seemingly overheated market, check out stocks in these sectors.