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Ok, so we all know the guy is rich....like 60 billion rich last I cared to check. I'm guessing most of that is tied up in Microsoft stock. It's not like he has it in a bank or anything...
So, hypothetically, the guy decides he wants to cash out...liquidate everything so he can store all his money in his basement...
How much do you think he'd actually get?
If he wanted to sell off his Microsoft stock, wouldn't word get out that one of the largest stakeholders, and further, the founder is bailing, which would cause the stock itself to plummet?
Do you think then that he could successfully liquidate even half of his worth?
He has 421M shares of MSFT stocks or ~ $11B at current price so, no, it's not the bulk of his assets. He's been selling 4-6M chunks about a dozen times a year (~$100-150M pretax each time ... simply staggering amount of cash).
Oh I think once you're over the couple of million dollars it really don't matter. I can't even conceive of having a BILLION dollars.
It most certainly matters. If he just had a couple million he wouldn't be able to make a dent in achieving his goal of curing world hunger and third world diseases.
How much money do you have to have for you to actually have less money than you have if you were to liquidate it?
Someone with a million in assets could pull out of the market completely and have a million sitting in front of him.
But Bill Gates, somehow I doubt that if he were to pull out completely he'd have, in front of him, as much as what his worth is stated as. By pulling out of the market, he'd devalue the assets he has....
Is this true or false? Do you think such a financial phenomenon exists?
A sort of catch 22 where your assets are only valued as long as they remain assets, and not money (in the bank bill sense)? Surely it does...liquidating assets always gives you less, I'd assume...so wouldn't that affect Bill Gates even more, such that, his 60 billion or whatever is actually less in money?
I'm thinking it's true...so, if it is, what is that "too much that it actually isn't as much" level? A million or two, and you can actually say it is "a million or two"...but 60 Billion, can you actually call it "60 Billion"?
You can call it "negative wealth"...
Last edited by dub dub II; 02-26-2013 at 08:44 PM..
Why on earth would anyone want 60 billion dollars in folding money?
The wealthy do not keep their assets in cash. They keep as little cash as they can get by with for their day to day expenses.
No, he would not lose value if he "cashed out" because that is not how it is done. He would cash out by selling the company. Or by trading his share for something else. And yes, there are people and companies who can afford to buy him out and take over the company and Gates would get all his worth out.
Like I said, Gates has been selling 4-6M shares about 10-12x a year so if he keeps this up and not buy any, he'd be all out in about 7 years.
He'd have the bullk of his $11B before taxes.
You'd say you, as an agent in the market, are completely independent of the market? That the market is outside of any individual?
Quote:
Originally Posted by oregonwoodsmoke
No, he would not lose value if he "cashed out" because that is not how it is done. He would cash out by selling the company.
The bigger the player the more influence he has over the market, and subsequently, the more the market has influence over him.
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