I know a majority of Bezos’ and Musk’s net worths are stock ownership. But they obviously would want to make actual cash. So do they just sell a bit of their stocks every year? How do they gain their ownership back then, aren’t they just decreasing their ownership of company stocks? Would they just buy more stocks then? And if so, isn’t that an endless loop of nothing? Sell your stocks to get money, but then buy the stocks back for more ownership of the company?
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They mostly dont. Cash loses value. They sell shares when they need to.
Antiwork afficionados and people who dont know much about economy will parrot and repeat what they heard, the usual “they take loans with their shares as collateral”, which is true but certainly not at the scale they think it is, because said stock owners know “stonks dont only go up”.
Dont forget they get paid in stock options too, meaning they can buy stocks at a discount, but said stocks cannot be sold for a certain period of time.
A few months ago, Musk sold a lot of shares just to pay taxes on his exercised stock options.
I am now patiently waiting for armchair economists to explain why he did not “take a loan with shares as a collateral” instead of selling, but I bet all i am going to get for stating facts is downvotes.
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