How surprised we are that The Guardian manages to get the wrong end of the stick in a story about business. Or markets. Or stocks. Or, well, anything actually. They want to tell us that some people sold their stocks just before the crash and that they’ve therefore avoided some losses.
He saved himself from larger losses by selling a big chunk of his Amazon shares in February, before the worldwide scale of the coronavirus crisis was fully acknowledged and before the stock market collapse.
Regulatory filings show that Bezos sold $3.4bn worth of Amazon shares in the first week of February, just before the stock price peaked.
Well, we know how that works, pieces about Bezos, Amazon, get more clicky clicky from the online readership. They go on:
Other US executives that have been either lucky or smart by selling large chunks of their shareholdings in February include Larry Fink, the chief executive of fund manager BlackRock, who saved potential losses of $9m, and Lance Uggla, CEO of data firm IHS Markit, who sold $47m of shares on 19 February that would have dropped to $19m if he had held on to them.
In total US executives sold about $9.2bn in shares of the companies they run in the five weeks before the start of the stock market rout. Selling before the 30% collapse in the market saved them from paper loses of $1.9bn.
So, what’s the important part here? The S&P is, by one estimation, $5 trillion down from its peak. Meaning that there’re an awful lot of holders of stock – some of whom will be said management – sitting on paper losses. 1.9b is 0.04% of 5t. That is, The Guardian gives us a report on 0.04% of the event and ignores the 99.96% of it.
Well done there, vry well done that man.