Why Are Billionaires Selling Their Company’s Stock?

Late last week I was reading some financial news articles and two have which, both happened to be about how Jeff Bezos and Jamie Dimon (who I didn’t know was a billionaire) are both selling tens of millions of dollars or more of their company’s stock.

Not only does it raise a lot of questions, but it also makes you ask, What do they know that the rest of us don’t? Of course if bad times are coming, the most powerful will know first, which is why when billionaires sell that many shares of their own company’s all of us should probably pay attention.

Now that I have talked about what’s going on, I’m going to discuss what I’m doing to prepare for the difficult times coming up. First, I am paying off all high interest and unnecessary debt. This goes without saying but not having to worry about things like credit cards, student loans, or even car payments will put more money in your pocket and lower your financial risk if you don’t have as many bills.

Another thing I’m doing is saving money. I’m fully funding my emergency fund, as well as setting money aside for investments, whether it’s stocks or cheap real estate. If an emergency happens especially during a bad economic time, which many people could be laid off, it will turn a disaster into an inconvenience. It’s also a great idea to have money set aside for investments because when you buy investments on the cheap, especially cash flowing investments, that’s what’s going to create wealth.

For anyone reading this, even though I am not a financial advisor, I would urge everyone to watch what the ultra rich and powerful are doing because they know something we don’t.