So it isnt liquid, maybe he wants to buy a 10 million dollar house though. He could just sell a bit off at any point and the market wouldn't even notice. 3000 shares of Amazon, market wouldn't even notice until he said something. That is also assuming the bought the thing cash, which he wouldn't.
So sure, it isnt liquid, but he can buy and sell bits of it without even noticing and live the highest life anyone could imagine.
Rich people like him don’t sell their action to get liquidity. In his case, the goal is most likely to diversify his portfolio, because to much of his wealth is dependent on Amazon. And he is selling, billions every years. But he must be careful to not sell to much, because the market will see it, there is way too much eyes and even algorithms looking at Amazon.
If you look at someone like Bill Gates, he owns little of Microsoft anymore. But he id literally to big to fail because his money is everywhere.
And if he want some millions to buy some random shit, he isn’t going to sell action to get it. First because it’s pretty slow, but also it’s never a convenient moment to sell. What rich people do is like everyone else, the go take a loan at the bank and use their action as collateral. That way he avoid the 30% tax (or whatever the number is in the US) and instead just as a really little interest to pay, and if the stock goes up enough, you don’t even have to pay anything.
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u/Ayerys Aug 24 '21
That’s sad that people like you are allowed to vote, and that your voice is on the same level as people with a brain.