What are Jeff Bezos, Mark Zuckerberg up to? US billionaires sell $11 billion in stock (2024)

FAQs

Why are Bezos and Zuckerberg selling stock? ›

"Billionaire CEOs like [Jeff] Bezos, [Mark] Zuckerberg, Jamie Dimon, and the Walton family are selling off massive amounts of their own stocks, and analysts think the CEOS may be bracing for an economic downturn," he said, adding, “An overheated stock market continues to climb to new heights as investors feed that ...

In mid-2023, news began to spread about the world's super-rich reducing their ownership of shares in public companies. The reason behind this move is to secure their wealth amidst rising interest rates and economic uncertainty. Similar issues are still ongoing to this day.

Reasons for Selling

Alan Johnson, President of Johnson Associates, said, “With our politics and everything else going on geopolitically, maybe it won't be as good a year from now or two years from now.” Or, they may want to diversify their holdings after cashing out their shares that had ballooned in value.

They might want to diversify their portfolio if virtually all their wealth is in one stock, or they might be rejigging their holdings as part of retirement or inheritance planning. Still, executives are fully aware of the message it sends to markets when they sell large chunks of their company's stock.

For example, if insiders are buying shares in their own companies, they might know something that normal investors do not. The insider might buy because they see great potential, the possibility for merger or acquisition in the future, or simply because they think their stock is undervalued.

To tally their wealth, Forbes used stock prices and exchange rates from March 8, 2024. Bernard Arnault and his family are at number one, with a net worth of $233 billion. Arnault is head of LVMH, a luxury fashion and cosmetics conglomerate in France.

However, it should be noted that it is rarely the case that one stock makes people millionaires. The more typical path to achieving millionaire status is through a well-structured portfolio with several high-growth companies. In this regard, Coinbase becomes a staple for growth-oriented investors.

Meanwhile, Jamie Dimon, CEO and chairman of JPMorgan Chase, sold $150 million in stock last week, his first cashing out since taking the top job at the bank 18 years ago. Around the same time, Leon Black, co-founder and former CEO of Apollo Global Management, shed $172.8 million in stock—also a first-ever stock sale.

We are starting to see more and more billionaires buy multi-family properties at a time when very few deals are getting done. They recognize the core need for housing and a persistent supply/demand imbalance that continues to move rents higher in many markets.

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Are billionaires prepping for an upcoming apocalypse? Some conspiracy theorists suggest that there is something these billionaires know — something bad that is likely to happen in 2024, and this is why they are building the secret bunkers.

Yet those sales were done mainly for tax purposes, and that's likely why he sold again. That is why the sales occur late in the year. But Buffett may have made a mistake again as Apple shares will certainly rise again. Fortunately, he can make up for the error if he repurchases the stock as he has done after selling.

Generally, Corporations do not “gain money” when the price of shares of stock in the corporation increases.

Why it matters: It makes sense even for billionaires to diversify out of having the overwhelming majority of their wealth in a single stock. Now's a great time to do just that. By the numbers: Between them, the three moguls have sold $9.3 billion of stock in less than a month, per Jonathan Moreland of Insider Insights.

Zuckerberg primarily sells Meta shares to fund philanthropic initiatives, according to company spokesperson. He has pledged to give away 99% of his stake to charitable purposes. Marc Benioff, Zuckerberg's peer in the tech world, also sold shares nearly every day in the second half of 2023.

Why it matters: It makes sense even for billionaires to diversify out of having the overwhelming majority of their wealth in a single stock. Now's a great time to do just that. By the numbers: Between them, the three moguls have sold $9.3 billion of stock in less than a month, per Jonathan Moreland of Insider Insights.

The main reason that the company decided to go public is because it crossed the threshold of 500 shareholders, according to Reuters financial blogger Felix Salmon. Facebook reportedly turned down a $75 million offer from Viacom in 2006. That same year, Yahoo!

Key Takeaways. Meta (formerly Facebook) has grown to become one of the largest and most well-known tech companies in the world. Since its IPO in 2012, the company's shares have risen greatly, and despite some bumps in the road, reached all-time highs in the summer of 2021 before plunging 25% on Feb.