3 ms·

Does he think Microsoft is close to peak valuation or that the markets are frothy? Or maybe he just wants to diversify or buy personal toys and real estate. H

Does he think Microsoft is close to peak valuation or that the markets are frothy? Or maybe he just wants to diversify or buy personal toys and real estate. He still has about $300 million in shares. There also seems to be a potential tax element to it: “Satya sold approximately 840,000 shares of his holdings of Microsoft stock for personal financial planning and diversification reasons,” a Microsoft spokesman said in a written statement. “He is committed to the continued success of the company and his holdings significantly exceed the holding requirements set by the Microsoft Board of Directors.” Analysts said the move could be related to Washington state instituting a 7% tax for long-term capital gains beginning at the start of next year for anything exceeding $250,000 a year.

Finnucane 5y ago
Does it really matter? No matter what, extremely wealthy guy will still be extremely wealthy guy.
- jdsully 5y ago
  It matters if your a MSFT shareholder and are wondering if you should “diversify” too.
  - seanmcdirmid 5y ago
    > It matters if your a MSFT shareholder and are wondering if you should “diversify” too. The answer to that question is yes, regardless of what Nadella does/did. I guess if you have a feeling MSFT is going to outperform the tech market or market as a whole, not diversifying can work, or if you lack the ability to hedge much and want a chance to get rich (and a chance to lose it also).
    - jdsully 5y ago
      You might have that feeling, but reconsider with the new information about insider selling. Insider trades do correlate to investment performance.
      - seanmcdirmid 5y ago
        Whelp, if you took that as a sell signal when he sold 30% of his stock in 2018, you probably did very poorly in the market since then: https://www.cnbc.com/2018/08/10/microsoft-ceo-satya-nadella-sells-30-percent-of-common-stock.html https://www.cnbc.com/2018/08/10/microsoft-ceo-satya-nadella-... Of course, he lost out selling at $100/share (vs today's $300+/share). And in 2014 when he sold a bunch of stock at $50/share. I'm going to say that if history has any saying in this, it means that the stock will be at $600/share the next time he sells.
      - sumedh 5y ago
        Insider selling is usually not a strong signal because you sell shares for multiple reasons, diversify, buying house, divorce etc. Insider buying is considered a strong signal because you usually buy because the insider thinks the share price will appreciate in the future.
servytor 5y ago
I wouldn't short Microsoft with the promise of Windows Continuum and Windows 365. I mean in my opinion, Microsoft chose to fail in competing with a smartphone OS because there would be an antitrust lawsuit.
- elromulous 5y ago
  Can't tell if you're being factious with the second part of your comment. It's almost certainly untrue. Iirc Gates was quoted regretting missing out on the mobile market.

Finnucane 5y ago

Does it really matter? No matter what, extremely wealthy guy will still be extremely wealthy guy.

jdsully 5y ago
It matters if your a MSFT shareholder and are wondering if you should “diversify” too.
- seanmcdirmid 5y ago
  > It matters if your a MSFT shareholder and are wondering if you should “diversify” too. The answer to that question is yes, regardless of what Nadella does/did. I guess if you have a feeling MSFT is going to outperform the tech market or market as a whole, not diversifying can work, or if you lack the ability to hedge much and want a chance to get rich (and a chance to lose it also).
  - jdsully 5y ago
    You might have that feeling, but reconsider with the new information about insider selling. Insider trades do correlate to investment performance.
    - seanmcdirmid 5y ago
      Whelp, if you took that as a sell signal when he sold 30% of his stock in 2018, you probably did very poorly in the market since then: https://www.cnbc.com/2018/08/10/microsoft-ceo-satya-nadella-sells-30-percent-of-common-stock.html https://www.cnbc.com/2018/08/10/microsoft-ceo-satya-nadella-... Of course, he lost out selling at $100/share (vs today's $300+/share). And in 2014 when he sold a bunch of stock at $50/share. I'm going to say that if history has any saying in this, it means that the stock will be at $600/share the next time he sells.
    - sumedh 5y ago
      Insider selling is usually not a strong signal because you sell shares for multiple reasons, diversify, buying house, divorce etc. Insider buying is considered a strong signal because you usually buy because the insider thinks the share price will appreciate in the future.

servytor 5y ago

I wouldn't short Microsoft with the promise of Windows Continuum and Windows 365. I mean in my opinion, Microsoft chose to fail in competing with a smartphone OS because there would be an antitrust lawsuit.

elromulous 5y ago
Can't tell if you're being factious with the second part of your comment. It's almost certainly untrue. Iirc Gates was quoted regretting missing out on the mobile market.