Does Bill Gates think Microsoft is a bad investment?

Company co-founder has sold off 90 million shares in the last year


In the past 12 months, Microsoft chairman Bill Gates has sold off 90 million shares, effectively reducing his holdings of Microsoft common stock by 13 per cent. He now holds roughly 591 million shares (of the 8.4 billion shares outstanding), and remains the company’s largest single stockholder. Gates’ rapid shedding of shares may set off alarm bells among investors, InformationWeek reports. Some critics would point to Windows Vista or the KIN phone as evidence that Microsoft is losing its grip. However, Microsoft officials have explained the selloff as smart investing—Gates is simply diversifying his holdings. And presumably, like most investors, Gates would like to see a decent return on his investment.


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Does Bill Gates think Microsoft is a bad investment?

  1. It's not just Bill and Microsoft – the ratio of insider selling to insider buying has been astronomical for the past few months. (Zero Hedge keeps close track of this). If insiders are bailing on their own company's stock it makes you wonder why anyone else should be buying at these prices.

  2. Hardly.

    Share wealth isn't cash wealth unless it's producing gigantic dividends, and Microsoft's dividend, while nice, isn't as high as many other blue chip companies' dividends in the market right now because it doesn't need to be. If he wants cash to enjoy in his retirement, or to spend on his charitable activities, he's got to sell some stock. Duh.

    The guy still owns 7% of one of the world's largest market cap companies. Saying he's bailing out on MS is absurd. This isn't even a story.

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