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Why did Jeff Bezos sell USD 6 billion in Amazon shares this week? Exploring reasons
Jeff Bezos' decision to sell USD 6 billion worth of Amazon shares this week has shocked many. Delve into the potential motives driving this significant move in the world of finance.
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Jeff Bezos sells USD 6 billion in Amazon shares, marking his first major divestment since 2021
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His trading plan aligns with Amazon's disclosure, reflecting Bezos' calculative management of wealth
Jeff Bezos, the founder of Amazon, sold USD 6 billion in Amazon shares this week, capturing the attention of investors and analysts alike. According to Bloomberg, this was Bezos' first sale of Amazon shares since 2021. The move comes after he announced plans to sell up to 50 million shares over the next year, with nearly half of that quota already met in just four days, as per Investopedia.
Relocation and potential tax savings
One of the primary reasons speculated for Bezos' decision to sell Amazon shares is his recent relocation from the Seattle area to Miami. Florida, has no capital gains tax, comparing Washington state, which will impose a 7% tax on such earnings in 2022. This strategic relocation could save Bezos approximately USD 288 million in taxes. Despite widespread speculation, neither Amazon nor Jeff Bezos have officially commented on the matter.
Bezos' actions have far-reaching consequences that could affect Washington state's capital gains tax revenue. With Bezos selling a large portion of his Amazon shares, the state stands at risk of losing a significant source of revenue. However, the exact impact on Washington's coffers remains to be seen as Bezos pursues his selling strategy. 
Continued wealth surge and ranking among world's richest
Despite ongoing sales, Bezos' fortune has continued to rise, reaching a staggering USD 199.5 billion, according to the Bloomberg Billionaires Index. This increase in wealth, totaling USD 22.6 billion this year alone, cements Bezos' status as one of the world's wealthiest individuals. Forbes estimates his fortune at USD 195.5 billion, leaving him as the world's third richest person, trailing only Bernard Arnault and Elon Musk.
Bezos' decision to implement the trading plan is consistent with Amazon's disclosure on February 2, which revealed his intention to sell up to 50 million shares over the next 12 months. This calculated move demonstrates a strategic approach to managing his wealth and diversifying his assets.
Bezos has a history of selling Amazon shares, having sold more than USD 30 billion since 2002, with significant transactions expected in 2020 and 2021. Furthermore, he has been actively gifting shares, including a significant donation of approximately USD 230 million to nonprofit organizations in November.
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