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Sunday April 28, 2024

World's richest men Mark Zuckerberg, Jeff Bezos, more are selling shares — but why?

World's wealthiest billionaires are selling their shares in attempt to invest cash away from market

By Web Desk
March 13, 2024
Mark Zuckerberg and Jeff Bezos gesture during separate gatherings. — AFP/File
Mark Zuckerberg and Jeff Bezos gesture during separate gatherings. — AFP/File

Mark Zuckerberg, Jeff Bezos, Jamie Dimon and many other world's richest people sold shares worth billions of dollars, but the reason behind them doing so is still undetermined considering that the market was still at an all-time high.

Most probably, fears of an impending tax hike or an economic collapse have been sparked by the widespread billionaire selling, according to Daily Mail.

Silicon Valley experienced widespread layoffs in 2023, indicating that the tech bubble was severely strained. In the case of winning reelection in November, President Joe Biden has pledged to increase taxes on the wealthiest individuals.

In a sombre earnings report in October, Jamie Dimon, the CEO of JPMorgan Chase, noted that "this may be the most dangerous time the world has seen in decades."

It was shown towards the close of the previous year that affluent investors retained fewer than 25% of their net worth in the stock market.

For a number of reasons, including the approaching US tax season or the need to diversify given that all of these companies are now well-established as significant Wall Street players, investors sell down.

Or may be it's just the market's oldest proverb: sell high.

Jeff Bezos, the founder of Amazon, sold $8.5 billion worth of stock over the course of nine months in February 2024.

Jamie Dimon made a historic first step after taking control of the renowned bank in 2006: he sold $150 million worth of his stock.

A long list of pressing issues was presented by Dimon in October, including the conflict between Russia and Ukraine, the ongoing war in Gaza between Israel and the Palestinians, high levels of government debt and deficits, high inflation, and a tight labour market where worker demands for higher wages have resulted in high-profile strikes in the entertainment and manufacturing sectors.

Mark Zuckerberg, the creator of Facebook, participated in the scheme as well, selling $428 million in Meta shares in 2023.

The Waltons, the family who founded Walmart, sold $1.5 billion worth of stock between February 21 and 24. With this, they have already sold $2.3 billion since December.

It's unclear how these millionaires will use their money specifically. Notably, the proceeds from Zuckerberg's sale will cover the estimated $300 million cost of his new compound on the Hawaiian island of Kauai.