As Stock Markets Hit New Record Highs, Billionaires Are Selling

As Stock Markets Hit New Record Highs, Billionaires Are Selling
Andrew Rummer

about 2 years ago1 min

Mentioned in story

As US stock markets hit fresh record after fresh record, the very wealthiest Americans – from Meta’s Mark Zuckerberg to Alphabet’s Sergey Brin – are selling. 

The benchmark S&P 500 has surged 23% in 2021 and closed at an all-time high last week. And as markets climbed ever higher, the 167 American members of the Bloomberg Billionaires Index sold a combined $43 billion in stock. That’s more than double the $20 billion they sold in 2020, which was already a big step up on prior years. 

Zuckerberg has sold $4.5 billion of Meta stock this year, almost eight times more than last year. Brin has offloaded $1.7 billion of Alphabet shares and his co-founded Larry Page has sold $1.8 billion – the first time either has sold any since 2017. And Elon Musk has sold almost $13 billion of Tesla in his first disposals since 2016.

A combination of US stocks trading at historically high valuations, an impending withdrawal of support from the Federal Reserve, and a proposed US tax hike on the super wealthy due to come into effect next year appears to be prompting the mega wealthy to take some chips off the table. Only time will tell if their call proves prescient or premature. 

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