[HN Gopher] Satya Nadella Sells Half of His Shares in Microsoft
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Satya Nadella Sells Half of His Shares in Microsoft
Author : gotmedium
Score : 26 points
Date : 2021-11-29 20:03 UTC (2 hours ago)
(HTM) web link (www.wsj.com)
(TXT) w3m dump (www.wsj.com)
| 1cvmask wrote:
| 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 wrote:
| Does it really matter? No matter what, extremely wealthy guy
| will still be extremely wealthy guy.
| jdsully wrote:
| It matters if your a MSFT shareholder and are wondering if
| you should "diversify" too.
| seanmcdirmid wrote:
| > 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 wrote:
| You might have that feeling, but reconsider with the new
| information about insider selling. Insider trades do
| correlate to investment performance.
| servytor wrote:
| 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.
| 1cvmask wrote:
| https://archive.md/iwqZd
| Tagbert wrote:
| In most cases where I have been given company stocks as part of
| compensation, I usually sell them as soon as I can. Depending on
| your role in the company you are often very restricted about how
| much you can sell and when. There are limited trading windows
| where you can legally sell and any inside information may prevent
| it even then. I'd rather have my money in some other stock where
| I have more freedom to trade.
| irrational wrote:
| Same here. I receive stock twice a year. I always sell it that
| same day.
| chrisjc wrote:
| Curious why you sell right away? No faith in your company or
| is there another reason I'm missing?
| rjbwork wrote:
| Diversification. If you consider that your employment at an
| employer is one part of your investment strategy, then it
| makes sense to diversify your portfolio as much as
| possible. Keeping those eggs in the same basket presents
| increased firm-specific risk .
| jamiepenney wrote:
| I've done this in previous jobs - nothing to do with the
| company itself, I just don't like tying both my investment
| and wage income to the same company.
| shric wrote:
| Ask yourself "if I was given the equivalent in cash instead
| of equity (e.g. a bonus or just an increased base), would I
| buy shares in my employers' company?"
|
| If the answer is no, then it makes sense to sell
| immediately.
| barrkel wrote:
| If you're restricted in trading for insider information
| reasons, you're often also restricted in trading other industry
| stocks for conflict of interest reasons.
|
| Not a bad thing to diversify, but of you diversify to e.g. an
| index fund, often you end up correlated with tech owing to how
| large a chunk of index growth is down to Apple, Google, Amazon
| etc.
| MR4D wrote:
| These aren't options.
|
| Also, if you ran the second biggest company on the planet, your
| investors would hate you for that behavior.
| moneywoes wrote:
| He saved roughly 21 million by doing this prior to the capital
| gain tax coming to WA. Any word on whether the legal challenge
| has held up?
| JoeAltmaier wrote:
| Gave this advice to people in successful startups: if you had $X
| million, would you sink it all into one company? If the answer is
| no, you should diversify.
| throwawaymanbot wrote:
| I guess hell use this money to spend in the new "Pay for dealz"
| browser they are about to launch. NICE!
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(page generated 2021-11-29 23:02 UTC)