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Elon is billionaire because he has potential to sell his shares. That the share price fluctuate a lot doesn't change it.
by lmilcin 6y ago
Elon is billionaire because he has potential to sell his shares. That the share price fluctuate a lot doesn't change it.
- bryanlarsen 6y agoThe point is that if Musk sold his shares the value of those shares would drop like a rock, partly due to supply & demand but mostly because that would signal non-confidence. OTOH, Buffet regularly sells his shares, mostly indirectly by donating shares to charities who then sell the shares. The amounts are large enough that they do affect the stock price, but not by nearly as much. That's why it's silly to say that Musk is richer than Buffet. If they both liquidated their positions, Buffett would be sitting on a bigger pile than Musk. It's also moot because it's so obviously temporary. Musk is going to end up either bankrupt or king of Mars. Buffett is going to fade away. His money will end up doing a lot of good -- it may be directly responsible for eliminating polio, malaria and/or HIV. But that good will have the Bill & Melinda Gates Foundation name on it, so Buffett's role may end up being forgotten. Perhaps that's for the best, given the number of Bill Gates conspiracy theories are floating around.
- lmilcin 6y agoI think this is no longer true. If Musk decided to sell his shares to get cash for another venture what investors would see is that even without Musk Tesla is still a well functioning company that delivers. Elisabeth did not have a product or well functioning company and if she decided to sell (even if she could) large portion of her shares this would likely cause investors to panic