Cashing out 4.1 billion in 11 days! Stockpiling Made in China! Brother-in-law was criticized by 15 senior officials

While many sellers were unable to return to work due to the epidemic and were preparing to eat dirt, my brother-in-law was frantically cashing out and hoarding Chinese-made products.

Since February, the brother-in-law has been frantically selling his Amazon shares. According to documents submitted by Amazon to the U.S. Securities and Exchange Commission ( SEC ), Amazon founder and CEO Jeff Bezos sold another $ 579.8 million worth of shares last Friday. If several stock sales in the past two weeks are added , Bezos has cashed out nearly $ 4.1 billion in Amazon shares in the past 11 days .

It is reported that on January 31 and February 3 , Bezos sold about 900,000 Amazon shares, with a total value of $ 1.84 billion; and on the following Tuesday and Wednesday, Bezos sold about 810,000 Amazon shares again, with a value of about $ 1.65 billion. The shares sold by Bezos in these four days alone accounted for 3% of his total holdings .

Why is my brother-in-law trying to sell off Amazon stock at such a high density in such a short period of time?

Since Bezos has not commented on this, we still don't know the reason. However, according to SEC documents, these transactions are part of a pre-arranged 10b5-1 trading plan .

What the hell is this 10b5-1 trading plan?

Simply put, Bezos' recent large-scale stock sales were pre-arranged as part of a 10b5-1 trading plan.

By selling so many shares in advance, could it be that my brother-in-law is not optimistic about the future development of Amazon?

This is not the case . According to Amazon's latest financial report, in 2019, Amazon's revenue was US$ 280.522 billion , a year-on-year increase of 20.45% . Net profit to shareholders was US$ 11.588 billion, a year-on-year increase of 15.04% . In the fourth quarter alone, net profit reached US$ 3.268 billion, a year-on-year increase of 8% .

Because of this, Amazon’s stock price rose by more than 2% some time ago, setting a record high, making Amazon the fourth US company after Apple, Microsoft and Google’s parent company Alphabet to have a closing market value of over US$ 1 trillion .

With performance soaring and stock prices surging, how could my brother-in-law be pessimistic about its future?

In fact, this is a common practice among super-rich people, like China's richest man, Jack Ma.

During his tenure as CEO of Alibaba, Jack Ma reduced his holdings several times, from 8.9% in 2014 to 6.2% last year. Over the past few years, Jack Ma has cashed out hundreds of billions of yuan. When asked why he cashed out, Jack Ma's answers were to improve his life, do charity, invest , etc.

Speaking of his brother-in-law, Bezos also sold a large number of stocks in 2016 and 2017. In August last year, Amazon's stock fell to its lowest point in 13 years after several days of decline. Bezos also sold nearly 1.5 million shares, cashing in about US$ 2.84 billion.

In 2017, Bezos also said that he would sell at least $ 1 billion of his shares each year to develop his space exploration company, Blue Origin . At the same time, he also left extra funds to better carry out charitable activities .

So, maybe my brother-in-law just wants to cash out because the stock price has risen a lot recently? Or maybe he wants to go to space again? Or maybe he wants to do charity? However, brother-in-law, why don’t you donate 100 million or 200 million to Wuhan? This is a big charity to contribute to the prevention and control of the epidemic. Please consider it quickly.

No matter why my brother-in-law cashed out, after all, it was his own money, so he had the final say. Besides, $4.1 billion is a drop in the bucket compared to Amazon's trillion-dollar market value, and he has a lot of money.

As soon as my brother-in-law cashed out, he started stockpiling Chinese-made products.

Amazon is stockpiling products made in China due to concerns that the coronavirus will harm its supply chain, Business Insider reported. Amazon confirmed the news yesterday (February 12 ) .

Amazon contacted many suppliers last week to quickly increase their inventory of products made in China. Amazon told these suppliers that the new orders were for products sold in the United States but made in China, and that the change was in response to the coronavirus outbreak .

Could it be that my brother-in-law was afraid that Amazon would run out of cash and wanted to stock up on goods with his own money to ensure the supply chain, so he cashed out $4.1 billion in just 11 days ?

Although my brother-in-law has a lot of money, he may not be generous to Amazon employees.

Recently, 15 US senators , including presidential candidates Warren and Sanders, jointly wrote a letter to Amazon CEO Bezos, severely criticizing Amazon's poor labor safety and health record.

In response, Jay Carney, Amazon's head of communications and policy, wrote that Amazon's critics should acknowledge that Amazon has done many meaningful things for the U.S. economy and workers, such as raising the minimum hourly wage and prepaying 95% of employees' tuition and fees, but did not mention Amazon's worker safety issues .

Maybe this is the reality. My brother-in-law's money is earned by the hard work of his employees and sellers. I hope Amazon can treat its employees well and I hope my brother-in-law can give more profits to sellers this year...