Photo: Paul Yeung / Bloomberg
Some of the richest people in the world have sold a total of more than $ 3 billion in shares of their major investments since August, diversifying their fortunes as markets report recovery, according to Bloomberg.
Heinz Hermann Thiele cashed in about $ 1.2 billion of his shares in Knorr-Bremse, the German brake maker that underpins his fortune. Peter van der Doss and Arno Schuyf, co-founders of Adyen, were part of a group of managers who sold their shares in the Dutch payment company worth $ 821 million, while Stephen and Mitchell Rails cashed in almost $ 1 billion from Fortive. Bloomberg TV Bulgaria.
Market volatility has risen in recent weeks after stocks halted the recovery trend. That recovery added about $ 30 trillion in global market value after the turmoil caused by the coronavirus pandemic. This has led many investors to overestimate the concentration of their wealth and cash in on some of their investments. In the week to September 11, insiders released information on the sale of shares worth $ 473 million, while only about $ 9.5 million were purchased.
“For the first time, most people are experiencing something as real, abrupt and sudden as this,” said Claire Madden, managing partner of Connection Capital, a London-based private equity firm whose investors include high-value assets. “It makes you re-evaluate your priorities,” added Claire Madden.
Most of the world‘s largest fortunes, made on their own, are based on one type of asset. For example, Jeff Bezos – Amazon shares represent 169 billion dollars of its total fortune of 183 billion dollars. Mark Zuckerberg’s 13 percent stake in Facebook makes up almost his entire fortune, while Amancio Ortega’s stake in Zara owns the majority of his fortune, even with a $ 17 billion real estate empire.
Malaysian billionaire Lim Quang Xia, founder of Kossan Rubber Industries, also sold his shares late last month, cashing in more than $ 30 million from the latex glove company, whose profits rose during the pandemic. Billionaire Leslie Wexner sold $ 89 million worth of shares in his L Brands in August, the month in which stock sales by executives, board members and major shareholders in US companies reached their highest levels this year.
“Stock market valuations have risen significantly, regardless of fundamentals,” said Seo-san, an analyst at Kiwoom Securities in Seoul.
While some billionaires sell stocks, others do just the opposite. Japan’s Masayoshi Son and French media mogul Patrick Drahi are considering splitting their companies due to recent turmoil. Hong Kong real estate mogul Peter Wu and the family behind Li & Fung Ltd., the world‘s largest consumer goods supplier, are among those who wrote off their companies this year.
Thiele’s sale will support his other investments, according to documents reviewed by Bloomberg, similar to his explanation for the previous reduction in his majority stake in Knorr-Bremse. An Adyen statement said the founders had cashed in their shares to diversify their stakes and reduce the risk of single shares.
The Rails brothers, who separated Fortive from Danaher in 2016, did not explain the reason for their sales. A Fortive spokesman did not respond immediately to the request for comment.