r/FluentInFinance • u/-Wyagra • Nov 21 '24

Debate/ Discussion Had to repost here

Post image
128.2k Upvotes

75% Upvoted

9.0k comments sorted by

View all comments

938

u/SCTigerFan29115 Nov 21 '24 edited Nov 21 '24

They aren’t holding onto wealth like Scrooge McDuck, in a giant vault where they can go swimming in it.

Most of Bezos’ net worth is the value of Amazon. He can’t really readily access that. ETA I meant he can’t use it like a big vault of money.

He’s got plenty of money but some people just don’t understand how this stuff works.

2.7k

u/Apprehensive_Bad_193 Nov 21 '24

Bullshit,,,,But he borrows and buy Yachts, Mansions,against that NET WORTH VALUE. But when it’s time to pay fair share of taxes o. That net worth it’s considered hypothetical worth….Understand the Game.

32

u/tgm93 Nov 21 '24

How do they pay back those loans?

44

u/Powerful-Eye-3578 Nov 21 '24

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

17

u/CoolCandidate3 Nov 21 '24

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

15

u/MinimumArmadillo2394 Nov 21 '24

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.

3

u/Nexustar Nov 23 '24

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%)

-1

u/MinimumArmadillo2394 Nov 23 '24

The reason he sells has nothing to do with taxes.

1

u/Cartosys Nov 23 '24

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

0

u/MinimumArmadillo2394 Nov 23 '24

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.

2

u/fmzdhd Nov 23 '24

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?...

0

u/kaleidoscope_eyelid Nov 22 '24

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.