4 ms·

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.