[deleted]
Gates Makes Largest Donation Since 2000 with $4.6B Pledge
11–20 of 301 posts
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#12I am not sure if I recall correctly but wasn’t there a reason where gates wouldn’t donate all of his wealth at once and needed to do it in stages ? Also, maybe they can’t utilize all that cash at once. Therefore it would be best to be illiquid until you need the liquidity.
I don't know why, but I always worry when I see huge donations that poor management will see most of the money end up devious hands. But I imagine with that much money, there's a ridiculous amount of attention as to where it's going, and plenty of good people willing to manage it. But I assume everything is The Big Short and House of Cards out there.
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#13I am not sure if I recall correctly but wasn’t there a reason where gates wouldn’t donate all of his wealth at once and needed to do it in stages ? Also, maybe they can’t utilize all that cash at once. Therefore it would be best to be illiquid until you need the liquidity.
Perhaps he wants to see, if his money is spent wisely before donating more bucks?
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#14So what is his net worth made up of if he's donated all but 1.5% of his MSFT stock? His remaining MSFT stock is worth about $8B. What's the rest of his $82B made up of?
- Edit- Nevermind, found it on here: https://en.wikipedia.org/wiki/Cascade_Investment
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#15Hypothesis: From an analytical perspective, he must believe that the upside of Microsoft is limited enough, at least over the time horizon he's concerned about, to start cashing in Microsoft stock. He's a smart guy. He'd be trying to convert his holdings at the top of a value curve, right?
Being a smart guy != Being a good money manager. He likely has a lot of people overseeing his funds. Moving around billions of dollars takes a long time.
His investment manager is Michael Larson at Cascade Investments
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#16No mention of what project s the funds are going towards.
There have been some good words from the foundation regarding the (health, primarily I believe) programs in Tanzania. I wonder if this is towards scaling those projects.
Anyone have the scoop?
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#17So what is his net worth made up of if he's donated all but 1.5% of his MSFT stock? His remaining MSFT stock is worth about $8B. What's the rest of his $82B made up of? - Edit- Nevermind, found it on here: https://en.wikipedia.org/wiki/Cascade_Investment
Cascade's investments are roughly 1/2 of his wealth. Bloomberg is currently estimating he's sitting on $43 billion in cash.
https://www.bloomberg.com/billionaires/profiles/william-h-ga...
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#18I am not sure if I recall correctly but wasn’t there a reason where gates wouldn’t donate all of his wealth at once and needed to do it in stages ? Also, maybe they can’t utilize all that cash at once. Therefore it would be best to be illiquid until you need the liquidity.
Probably because 1) he donates shares (instead of cash) due to tax reasons, and 2) the receiving party needs to sell the MSFT shares to end up with cash. If he donated his entire stake at once, and everyone started selling, that wouldn't be good for the share price.
the stock does not have to be sold. it is used as collateral. The bank will accept $1 billion of MSFT stock in exchange for probably $1 billion cash
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#19I am not sure if I recall correctly but wasn’t there a reason where gates wouldn’t donate all of his wealth at once and needed to do it in stages ? Also, maybe they can’t utilize all that cash at once. Therefore it would be best to be illiquid until you need the liquidity.
I don't know why, but I always worry when I see huge donations that poor management will see most of the money end up devious hands. But I imagine with that much money, there's a ridiculous amount of attention as to where it's going, and plenty of good people willing to manage it. But I assume everything is The Big Short and House of Cards out there.
I think it's the opposite: you get $100/month and that is the only money you will ever get for that month to live off of, you will probably be very careful how it is used. But if you get $1 million a month you may be less careful
Re: Gates Makes Largest Donation Since 2000 with $4.6B Pledge
#20Hypothesis: From an analytical perspective, he must believe that the upside of Microsoft is limited enough, at least over the time horizon he's concerned about, to start cashing in Microsoft stock. He's a smart guy. He'd be trying to convert his holdings at the top of a value curve, right?
I could be wrong (I'm certainly no investor), but rather than trying to time a large sell at the peak, I think a smart investor would accpet that prediciting stock movement that accurately is hard and actually just sell slowly over time at a fixed rate to dollar cost average their exit.