Forbes rich list

Regarding the Fores rich list. There's much publicity about all these
"billionaires" who have a "worth" of "billions". Take someone like Bill
Gates. If most of his net worth is in Microsoft stock, and if Bill decided
to cash out of Microsoft 100%, would he be able to? How many "billions"
would he wind up with should he decide to go buy $40 billion in "stuff"?
Suppose that it takes him a year or so to "cash out". There's no doubt he
would wind up with LOTS of money, but would he REALLY wind up with $40
billion or even half that.

Exercise: What things would we need to take into account? How much does he
really end up with, after taxes, depreciating the value of Microsoft,
affecting the economy, and so forth. Project what his real net worth would
be in this scenario.

Re: Forbes rich list

"Richard" <> wrote in
news:iisQf.12012$:

> Regarding the Fores rich list. There's much publicity about all these
> "billionaires" who have a "worth" of "billions". Take someone like
> Bill Gates. If most of his net worth is in Microsoft stock, and if
> Bill decided to cash out of Microsoft 100%, would he be able to? How
> many "billions" would he wind up with should he decide to go buy $40
> billion in "stuff"? Suppose that it takes him a year or so to "cash
> out". There's no doubt he would wind up with LOTS of money, but would
> he REALLY wind up with $40 billion or even half that.
>
> Exercise: What things would we need to take into account? How much
> does he really end up with, after taxes, depreciating the value of
> Microsoft, affecting the economy, and so forth. Project what his real
> net worth would be in this scenario.
>
>
>

Forward Annual Dividend Rate5: 0.36
Forward Annual Dividend Yield5: 1.30%
Trailing Annual Dividend Rate3: 0.33
Trailing Annual Dividend Yield3: 1.20%


GATES, WILLIAM H. III 977,499,336

or NOT cash out and collect more than 350 million dollars a year in
dividends
977 499 336 x .36 = 351 899 761

not to mention all the computer geek groupies

Re: Forbes rich list

Richard writes:

> Regarding the Fores rich list. There's much publicity about all these
> "billionaires" who have a "worth" of "billions". Take someone like Bill
> Gates. If most of his net worth is in Microsoft stock, and if Bill decided
> to cash out of Microsoft 100%, would he be able to? How many "billions"
> would he wind up with should he decide to go buy $40 billion in "stuff"?
> Suppose that it takes him a year or so to "cash out". There's no doubt he
> would wind up with LOTS of money, but would he REALLY wind up with $40
> billion or even half that.
>
> Exercise: What things would we need to take into account? How much does he
> really end up with, after taxes, depreciating the value of Microsoft,
> affecting the economy, and so forth. Project what his real net worth would
> be in this scenario.

I plan to spend the next few days working on your homework question as
the answer will have a great effect on my standard of living......

Re: Forbes rich list

Its not a homework question.. no need to post your answer. This is a
discussion.

"Blash" <> wrote in message
news:C0381A17.2D88E%
> Richard writes:
>
> > Regarding the Fores rich list. There's much publicity about all these
> > "billionaires" who have a "worth" of "billions". Take someone like Bill
> > Gates. If most of his net worth is in Microsoft stock, and if Bill
decided
> > to cash out of Microsoft 100%, would he be able to? How many "billions"
> > would he wind up with should he decide to go buy $40 billion in "stuff"?
> > Suppose that it takes him a year or so to "cash out". There's no doubt
he
> > would wind up with LOTS of money, but would he REALLY wind up with $40
> > billion or even half that.
> >
> > Exercise: What things would we need to take into account? How much does
he
> > really end up with, after taxes, depreciating the value of Microsoft,
> > affecting the economy, and so forth. Project what his real net worth
would
> > be in this scenario.
>
> I plan to spend the next few days working on your homework question as
> the answer will have a great effect on my standard of living......
>

Re: Forbes rich list

Richard announces:

> Its not a homework question.. no need to post your answer. This is a
> discussion.

OK sir!!!

Re: Forbes rich list

"Richard" <> wrote in message
news:iisQf.12012$
> Regarding the Fores rich list. There's much publicity about all these
> "billionaires" who have a "worth" of "billions". Take someone like Bill
> Gates. If most of his net worth is in Microsoft stock,

That may or may not be true any more.

> and if Bill decided to cash out of Microsoft 100%, would he be able to?

He has made no secret of the fact that he regularly diversifies,
and has done so for years. The last time I looked,
he sold over $500,000,000 of MS stock in 2004.

> How many "billions"
> would he wind up with should he decide to go buy $40 billion in "stuff"?

I belive he has aboy $27B left in MS stock.

> Suppose that it takes him a year or so to "cash out".

More like 50, at his current rate, so he most likely will never cash out,
even if (when?) he leaves MS to take over at Berkshire.
Melinda will inherit it, then his daughters.

> There's no doubt he
> would wind up with LOTS of money, but would he REALLY wind up with $40
> billion or even half that.

Money doesn't mean the same to Bill Gates as it does to most of us.
He has, after all, given away over $20 billion in recent years,
so he probably is worth between $50 and $100 billion,
regardles of what Forbes' guesstimate is.
>
> Exercise: What things would we need to take into account?

How much MS stock has he sold over the years,
at what prices, what did he do with the money,
and what rate of return has he experienced
on the money he kept and subsequently re-invested
in other ventures versus what he donated.

> How much does he
> really end up with, after taxes, depreciating the value of Microsoft,
> affecting the economy, and so forth. Project what his real net worth would
> be in this scenario.

Bill Gates wealth can be described with the same word
that Rolls-Royce use to describe the power output of their engines.

Adequate.