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This is actually a very reasonable complaint about the estimates of their wealth, it's unlikely that they could convert a significant portion of their stock int

by gpm 6y ago

This is actually a very reasonable complaint about the estimates of their wealth, it's unlikely that they could convert a significant portion of their stock into dollars at the current price... 1 share might be equivalent to 100 dollars, 1 billion shares is unlikely to be equivalent to 100 billion dollars.

est31 6y ago
When public companies make offers to buy each other, they usually offer prices a few percent above the public market value, no? Maybe Amazon is worth less without having a strong leadership. At least Apple gained a lot from the co-founder coming back. But in general, if he sells in small packages, he should be able to convert his stocks into cash if he wanted to.
- gpm 6y ago
  A company (or anyone else) attempting to buy all of a public company does pay a premium, but no one is about to take Amazon private. Selling in small packages, alleviates one problem (lack of instantaneous demand), but it still increases the supply of shares in the market, which is going lower the price. That's before you consider effects like strong leadership or that the apparent lack of confidence from the big share holder is going to decrease the price. Edit: Incidentally if you look at Bezos's trading history, you'll discover that he has been doing the "sell in small packages thing". I'd speculate that he's doing it as fast as he thinks he can get away with: https://finviz.com/insidertrading.ashx?oc=1043298&tc=7 https://finviz.com/insidertrading.ashx?oc=1043298&tc=7
robjan 6y ago
When large investors sell they usually don't sell on the exchange, partially to avoid moving the market too much.
inter_netuser 6y ago
Such transactions happen routinely. It is not at all an issue, the largest were 180-250 billion deals. https://en.wikipedia.org/wiki/List_of_largest_mergers_and_acquisitions#2020s https://en.wikipedia.org/wiki/List_of_largest_mergers_and_ac...
- gpm 6y ago
  Err, you realize 1. You have to go back to 2000 to find a purchase > 200B (AOL bought by Time Warner, for 182, 270B inflation adjusted). 2. The only other >200B purchase was Vodafone Airtouch plc bought by Mannesmann (281B inflation adjusted, 183B in 1999 dollars), "it happened twice" isn't routine. 3. That 270B is 1/6th of Amazon's market cap.

by gpm 6y ago

est31 6y ago

When public companies make offers to buy each other, they usually offer prices a few percent above the public market value, no? Maybe Amazon is worth less without having a strong leadership. At least Apple gained a lot from the co-founder coming back. But in general, if he sells in small packages, he should be able to convert his stocks into cash if he wanted to.

gpm 6y ago
A company (or anyone else) attempting to buy all of a public company does pay a premium, but no one is about to take Amazon private. Selling in small packages, alleviates one problem (lack of instantaneous demand), but it still increases the supply of shares in the market, which is going lower the price. That's before you consider effects like strong leadership or that the apparent lack of confidence from the big share holder is going to decrease the price. Edit: Incidentally if you look at Bezos's trading history, you'll discover that he has been doing the "sell in small packages thing". I'd speculate that he's doing it as fast as he thinks he can get away with: https://finviz.com/insidertrading.ashx?oc=1043298&tc=7 https://finviz.com/insidertrading.ashx?oc=1043298&tc=7

robjan 6y ago

When large investors sell they usually don't sell on the exchange, partially to avoid moving the market too much.

inter_netuser 6y ago

Such transactions happen routinely. It is not at all an issue, the largest were 180-250 billion deals. https://en.wikipedia.org/wiki/List_of_largest_mergers_and_acquisitions#2020s https://en.wikipedia.org/wiki/List_of_largest_mergers_and_ac...

gpm 6y ago
Err, you realize 1. You have to go back to 2000 to find a purchase > 200B (AOL bought by Time Warner, for 182, 270B inflation adjusted). 2. The only other >200B purchase was Vodafone Airtouch plc bought by Mannesmann (281B inflation adjusted, 183B in 1999 dollars), "it happened twice" isn't routine. 3. That 270B is 1/6th of Amazon's market cap.