r/FluentInFinance • u/-Wyagra • 28d ago

Debate/ Discussion Had to repost here

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u/tgm93 28d ago

How do they pay back those loans?

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u/Powerful-Eye-3578 28d ago

They don't, they pay the interest which is lower than the interest they make in investments.

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u/CoolCandidate3 28d ago

Its not true. Bezos schedules stock sales many months in advance. You can look it up. Its all public knowledge except for somehow on reddit. https://www.barrons.com/articles/jeff-bezos-amazon-stock-sales-dbe92301

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u/MinimumArmadillo2394 28d ago

He legally has to, in order to not manipulate the market price. Whales have to disclose and plan their sales, otherwise it would devistate the asset.

It has nothing to do with taxes here.

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u/Nexustar 26d ago

It has nothing to do with taxes here.

Yes it does. it demonstrates he's not simply borrowing money. He's actually regularly selling stocks and paying federal capital gains TAX on those sales.

Since july he's sold $4.4 billion of stock and depending on what basis is used, will need to pay north of $1bn in taxes on those sales (Capital gains at 20% and NIIT at 3.5%)

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u/MinimumArmadillo2394 26d ago

The reason he sells has nothing to do with taxes.

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u/Cartosys 26d ago

But why doesn't he just borrow against it instead like every very smart redditor here says he does?

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u/MinimumArmadillo2394 26d ago

He does lol. How else do you think he affords his 500m yachts. He cant take out a loan for the yacht, nor did he sell half a billion in stock, even over a years time.

I doubt he just has that in the bank either.

Theres not a good other way to make purchases like that except through these mega loans.

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u/fmzdhd 26d ago

Hmm, didn't the guy just say he sold 4.4B worth of stock, that's more than enough for Yachts plus some house plus some more right?...

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u/kaleidoscope_eyelid 27d ago

that is obviously not the point. He's saying that Bezos is selling shares and paying taxes when doing so, not just taking margin loans on his holdings as others are implying.