With public companies, when executives sell shares, they have to report their selling of the shares. It is the same when they buy shares, although the disclosure is not real time, it takes a month. Many people examine the reports to see if there is a clue to the buying and selling. Sometimes buying is seen as a smart move; sometimes selling is to diversify their holdings. If most of your assets are tied to the stock of the company, it is reasonable to sell some and hold something else – bonds, real estate, gold, or spend it on a lavish lifestyle ie pay off the debts.
In regulatory filings, Jeff Bezos sold 1 million shares to raise $3.1 billion. It should be noted Mr. Bezos still owns 54.5 million shares worth about $174.64 billion (54.5 million times $3,225).
Mr. Bezos said every year he will sell at stock worth at least $1 billion to fund his rocket company Blue Origin.
Linking to dividend paying stocks, similar to Mr. Bezos it is great to be a position to sell some of your holdings when the stock rises in portfolio management. Sometimes you sell to ensure than whatever happens in the economy, your financial position is secure. There are many reasons to sell and remember you do not have to hold a stock for a lifetime, you can and if it continues to provide you with an income which allows you to live comfortably there maybe no reason to sell. Even billionaires sell once in a while, do not fall in love with any stock.
There are more questions than answers, till the next time – to raising questions.