Key Takeaways
- Amazon founder Jeff Bezos three months ago disclosed his move back to Miami, where he attended high school and where his parents still live.
- The move helps Bezos avoid a state-level 7% capital gains tax that the state of Washington, where he's lived for years, instituted three years ago.
- Bezos' recent sale of Amazon shares valued at a substantial amount follows a prescribed stock sale plan allowable for wealthy corporate insiders.
In the past week, Jeff Bezos has unloaded more than 20 million shares of Amazon.com Inc. (AMZN), the company he founded 30 years ago in his Seattle garage.
He's following a prescribed plan available only to corporate insiders—and his recent cross-country move will reduce the transaction's tax bill.
Amazon's former chief executive officer (CEO) and the world's third-richest man, Bezos sold $6 billion worth of the company's stock between Feb. 7 and Feb. 14, according to filings with the Securities and Exchange Commission.
It marked the first time Bezos has sold Amazon shares since November 2021. Though obviously a substantial amount of money, the sale represented just 3.6% of Bezos' ownership in Amazon; he still owns more than 952 million shares valued at more than $160 billion.
Bezos sold his shares as part of a predetermined process for selling company stock. And his recent move to Miami will ease the tax burden of that process.
Playing the 10b5-1 Game
Bezos announced on Nov. 8, 2023, that he planned to sell up to 50 million shares of Amazon stock before Jan. 31, 2025. At the time, Amazon's stock traded near $142 per share; it since has risen to nearly $170.
His plan falls under the SEC's 10b5-1 rule, which outlines parameters that allow written agreements between corporate insiders and brokers for selling company stock.
Those agreements establish predetermined trading instructions that help the SEC track—and help companies and individuals defend against—insider trading accusations.
Typically, the SEC limits 10b5-1 plans to corporate insiders owning at least 10% of a company's shares, though companies may offer the plans to employees not traditionally considered insiders. At the time Bezos initiated his plan, he owned 10% of Amazon's outstanding shares.
Welcome (Back) to Miami
Six days before Bezos unveiled his 10b5-1 plan, he disclosed he was moving to Miami. He attended high school there in the early 1980s, and his parents still live in nearby Coral Gables. He reportedly bought two estates valued at a combined $147 million in Indian Creek Village, an island north of Miami Beach.
In addition to returning to his roots, the move also allows Bezos to avoid state taxes on his stock divestitures.
Florida and Washington are two of nine states with no state-level income taxes. But the state of Washington imposed a state-level 7% capital gains tax three years ago—a tax Florida doesn't have. That means Bezos saved an estimated $430 million in state taxes by changing coasts.
Other billionaires have flocked to Florida in recent years, including famed investors Carl Icahn and Josh Harris. Harris recently bought the National Football League's Washington Commanders franchise.
A 2019-20 analysis found it's not just billionaires: Households earning more than $200,000 annually moved to Florida at four times the rate of any other state.
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FAQs
He's following a prescribed plan available only to corporate insiders—and his recent cross-country move will reduce the transaction's tax bill. Bezos sold his shares as part of a predetermined process for selling company stock. And his recent move to Miami will ease the tax burden of that process.
Why are all the billionaires selling their stocks? ›
"Billionaire CEOs like [Jeff] Bezos, [Mark] Zuckerberg, Jamie Dimon, and the Walton family are selling off massive amounts of their own stocks, and analysts think the CEOS may be bracing for an economic downturn," he said, adding, “An overheated stock market continues to climb to new heights as investors feed that ...
Who owns the most amount of Amazon stock? ›
Founder and former CEO Jeff Bezos is the largest Amazon shareholder, with more than 937 million shares, which represent a stake of about 9% in the company. Bezos' shares are worth an estimated $166 billion.
What stock is Jeff Bezos investing in? ›
Uber Technologies Inc.
As with Airbnb, Bezos invested early on in this ride-sharing giant via a piece of Uber's series B funding round. The popular ride-hailing app went public in 2019 at $45 per share, valuing the company at more than $80 billion at the time, and it has since nearly doubled in size.
Why did Amazon stock rise so much? ›
Key Background. Amazon shares' 26% rally this year outpaces gains of all three major stock indexes. The AI transformation has caused the dramatic shift in investor sentiment for Amazon and its peers at the cutting edge, and analysts expect Amazon's AI-heavy AWS division to drive much of the online retail giant's growth ...
Why are the rich people selling their stocks? ›
The reason behind this move is to secure their wealth amidst rising interest rates and economic uncertainty. Similar issues are still ongoing to this day.
Who buys stocks when everyone is selling? ›
But there's one group of investors who charge in to buy when stocks are selling off: the corporate insiders. How do they do it? They have 2 key advantages over you and me that provide them the edge during uncertain times. If you follow their lead, you can have that edge too.
Why is Jeff Bezos selling Amazon stock? ›
He's following a prescribed plan available only to corporate insiders—and his recent cross-country move will reduce the transaction's tax bill. Bezos sold his shares as part of a predetermined process for selling company stock. And his recent move to Miami will ease the tax burden of that process.
How much of Google does Jeff Bezos own? ›
The $250,000 Bezos invested into Google was to buy 3.3 million shares at $0.08.
What percentage does Jeff Bezos own in Amazon? ›
Net Worth Summary
Bezos owns about 9% of Amazon, the world's largest online retailer, according to a February 2024 form 4 filing. He also owns space exploration company Blue Origin, which is included at Bloomberg's calculation of investment cost.
Bill Gates Portfolio: 7 Best Stocks to Buy Now
| STOCK | % OF PORTFOLIO | MARKET VALUE OF SHARES |
|---|
| Microsoft Corp. (MSFT) | 33.5% | $15.4 billion |
| Waste Management Inc. (WM) | 16.4% | $7.5 billion |
| Berkshire Hathaway Inc. (BRK.B) | 15.9% | $7.3 billion |
| Canadian National Railway Co. (CNI) | 15.8% | $7.2 billion |
3 more rowsAmazon founder Jeff Bezos has heavily bet on Perplexity AI, a startup that is taking on the search giant Google.
Where does Mark Zuckerberg invest his money? ›
In addition to his investments in tech companies, Mark Zuckerberg has also diversified his portfolio by investing in real estate. According to reports, Zuckerberg owns over 1,200 acres of land across various properties in the United States.
What is Amazon's prediction for 2024? ›
Amazon's revenue, meanwhile, is expected to grow 11% to $638.8 billion in 2024. Sales grew 11.8% in 2023 and 9.4% in 2022.
Is AMZN a buy right now? ›
Amazon has 20.46% upside potential, based on the analysts' average price target. Is AMZN a Buy, Sell or Hold? Amazon has a consensus rating of Strong Buy which is based on 42 buy ratings, 0 hold ratings and 0 sell ratings.
Who is Amazon's largest shareholder? ›
Key Points. Amazon's founder, Jeff Bezos, owns a 12-figure stake in the tech giant, making him the largest shareholder.
What percentage of stocks are owned by billionaires? ›
The wealthiest 10% of Americans own 93% of stocks even with market participation at a record high.
Did Bill Gates sell his stock? ›
A new 13F filing for the Bill and Melinda Gates Foundation Trust reveals two key changes made in the first quarter. The trust sold 1.7 million Microsoft shares and 2.6 million shares of Berkshire Hathaway Inc (NYSE:BRK). The trades lowered the weighting of these two stocks by 4.5% and 13.1%, respectively.
Who is the richest man off stocks? ›
93-year-old Warren Buffett heads the list. The chairman and CEO of Berkshire Hathaway has a net worth of $128.7 billion. Buffett's Berkshire Hathaway portfolio is 62% invested in only three stocks: Apple (42.9%), Bank of America (10.2%) and American Express (9.1%).
What do billionaires invest in the most? ›
Real Estate
Many billionaires have a portfolio of commercial properties, land, and development projects, both for their profit potential as well as the increased stability they can provide to balance out stock holdings. Office buildings are the most popular choice, followed by retail and healthcare facilities.
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