Eric Schmidt Plans To Sell 3.2M Google Shares

Anyone who can end up with &#62; 1B$ in cash after taxes and fees at the end of the day is in an interesting place.<p>I have really been impressed with the gusto in which Bill and Melinda Gates have thrown their fortune behind their philanthropy goals. From a cultural history perspective, older families with dynastic wealth tended to get diversified as the generations spread wider and wider, but modern day generations are quite narrow, between one an four families at any given time, rarely spreading.<p>Many people believe that as production capacity outstrips demand at any cost point we'll enter a sort of 'star trek' like period where nobody has to work. Of course somebody has to do some work, but who that will be, that will be the economic factor of the times.<p>With fertility at 1.6 births per family then for a 21st century family patriarch, a billion dollars in a trust fund could probably provide a living for you descendants pretty much forever.

This seems a well timed move by Schmidt.<p>Google share price has had a lot priced into it recently (Jumps on self driving cars, google glasses etc) and the Inevitable drop in QE means the price is going to have to slow. Not decline, just grow slower.<p>That's not to say google is in particular trouble, but their growth markets for the future are BIG markets, fibre, cars, home automation - All markets that need lots of pump priming, lots of infrastructure work and that will eventually become ubiquitous.<p>There may not be a lot of profit in the markets or google may not be able to capture it but there will be a lot of cash, and that maybe google's destiny - PG&#38;E.<p>Just my two cents (been reading up on profitability and ROI of 19C railways - fascinating)

That's gotta be a good feeling. One I may never feel in 1000 lifetimes, but I sure would love to know that feel.

Is it worth the trouble to sell rather than borrow against it? Anyone have any idea on the economics of borrowing against such a large amount of equity in such a stable company?

I would buy them all if I could..

When the news about the change in structure of the shares came out a while back I decided that this is a company that I could never invest in (a big enough discount to intrinsic value may change my mind). The execs can reduce their economic interest in the company while maintaining control, which isn't great for keeping their interests aligned with shareholders.<p>e: Here's a study that shows that companies with dual-class share structures pay executives more in compensation than usual and make value destructive acquisitions.<p><a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1080361" rel="nofollow">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1080361</a>

That is a huge amount to sell in one year. Wonder why he is unloading so fast. Why not a 5 year plan?