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GOOG Insiders Cash Out a Cool Half Billion

Cha-Ching!

   
8:36 pm on Mar 17, 2005 (gmt 0)

WebmasterWorld Administrator brett_tabke is a WebmasterWorld Top Contributor of All Time 10+ Year Member Top Contributors Of The Month



[techweb.com...]

A group of Google Inc. executives led by co-founders Sergey Brin and Larry Page and chief executive Eric E. Schmidt have cashed in over $500 million in Google stock, but investment banking analysts say the sales haven't made a dent in the search engine company's financial health.
9:14 pm on Mar 17, 2005 (gmt 0)

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Bahah. So much for following in the footsteps of Warren Buffet!

For those who are interested in what the Oracle of Omaha has to say about selling shares in your own company, I suggest you refer to his writings at [berkshirehathaway.com...]

Sure, I could see a few mill to buy the house, but 500 million?

A man who believes in his company should not sell beyond what he needs to.

9:38 pm on Mar 17, 2005 (gmt 0)

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Yawn, Old News [webmasterworld.com] :)

But mine didn't get any replies because it didn't make the front page. Arrggh :)

[edited by: oddsod at 9:39 pm (utc) on Mar. 17, 2005]

9:38 pm on Mar 17, 2005 (gmt 0)

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and on a side note I received my first Google external marketing piece from Adwords in the mail yesterday....

the machine commeth

9:39 pm on Mar 17, 2005 (gmt 0)

WebmasterWorld Senior Member ogletree is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Really who needs more than 50 million. Thats nuts. Sends a bad message. It says they don't believe in the company.
9:47 pm on Mar 17, 2005 (gmt 0)

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The Washington Post reported Thursday that the sales by Brin and Page represent just a tiny piece of their Google holdings.

That $500 million is a combined total of the executives who sold, and apparently they have plenty more. Must be nice.

10:13 pm on Mar 17, 2005 (gmt 0)

WebmasterWorld Administrator webwork is a WebmasterWorld Top Contributor of All Time 10+ Year Member



A fundamental principal of investing, that one should not place all of one's eggs in one basket, applies as much to them as anyone else.

The mention of Buffet would be more apt if Berkshire Hathaway was a monolithic company, like Google, but it isn't. BH is comprised of many companies. Ergo, Warren's holdings are diversified. He needn't sell shares in order to diversify.

Also, why shouldn't they pull out some money and use it - personally - to seed other projects? They started Google from a relatively small pile of cash. Whose to say they might not do it again, with their own money?

Yipee for them! It's the American dream.

Back to work for the rest of us.

11:09 pm on Mar 17, 2005 (gmt 0)

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Seed other projects? They're full time managers at Google.
They don't have any time to be seeding other projects.

If this means they're giving up the reigns - than I can understand that.

But if they're going to keep on pretending to run the company, then this is just a very bad sign.

They'd be a lot more worried about shareholder value if their total networth was caught up in Google stock.

Yes, Buffet does have the luxury of owning a wide variety of businesses. But that's because he never sold an ounce of stock so he wanted to make sure his company was rock solid!

He has also shown, historically, something like 21% per year growth.

Google can diversify itself as well by aquiring other companies in the realm of data organization, if they think that's the best way to maintain shareholder value.

However, obviously they'd rather not go down with the ship they're captaining - they've got all their lifeboats ready.

11:13 pm on Mar 17, 2005 (gmt 0)

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better do it before the stock tanks like the serps have.
3:35 am on Mar 18, 2005 (gmt 0)



I would've sold more. There's no way G is worth $50 billion and as long as yo do it legally, selling is OK. Doesn't show much confidence, but people know that G is overvalued.

$50 million isn't much these days for high profile people. Ken Lay is spending some $30 milion in lawyers alone. Robert Blake needed $10 million.

4:47 am on Mar 18, 2005 (gmt 0)

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When you SMILE, it makes other people wonder what you've been up too...
5:00 am on Mar 18, 2005 (gmt 0)

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I wonder what they're going to do with all that money since buying nice cars and stuff is frowned upon (per 60 Minutes).
4:32 pm on Mar 18, 2005 (gmt 0)



"I wonder what they're going to do with all that money since buying nice cars and stuff is frowned upon"

yeah cars are frowned upon, but municipal bonds, real estate and hedge funds praised. Who are they kidding? If you have the money, you have it, no need to hide unless you want to

5:06 pm on Mar 18, 2005 (gmt 0)

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no need to hide unless you want to

But according to executives at Google, you're not allowed to enjoy it. Did you watch the segment? I just thought it was odd to frown upon people enjoying what they've earned.

5:16 pm on Mar 18, 2005 (gmt 0)



"But according to executives at Google, you're not allowed to enjoy it. Did you watch the segment? I just thought it was odd to frown upon people enjoying what they've earned."

picture this: Me and you are workign next to each other. You started at G 2 years ago and are worth $2 million (just picked a number). I started 4 months ago and my stock options are priced at $180, virtually useless. I think they don't want to make the new people feel bad.

9:12 pm on Mar 18, 2005 (gmt 0)

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picture this: Me and you are workign next to each other. You started at G 2 years ago and are worth $2 million (just picked a number). I started 4 months ago and my stock options are priced at $180, virtually useless. I think they don't want to make the new people feel bad.

They'll feel bad anyway. Trust me. I'm living it. But I understand what you're saying.

3:16 pm on Mar 19, 2005 (gmt 0)

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Really who needs more than 50 million.

Countries and charitable organisations ... I wonder how much of the $500 million will be used to help people? (Other than the accountant-recommended-tax-deductable-donations ...)

Yawn, Old News :)
But mine didn't get any replies because it didn't make the front page. Arrggh

Heh! All the cr*p we get about "checking for other similar threads before posting" and Brett himself falls at the post ... I love it!

I just thought it was odd to frown upon people enjoying what they've earned.

I figured that one would have been pretty transparent? Why does everyone hate Bill Gates = he has all the money (i.e. power) to do whatever he wants. If Google Staff were to show how rich they are people would start hating the "world's favourite puppy-dog search engine" and things would plummet very quickly.

Example 1: What is the main reason you hear people quote when buying a Mac? ... because they hate Microsoft. The under-dog (which Google was and which they still want to appear) is always rooted for.

Example 2: I get more influence and productivity when I show up to meetings in my old Jeep than I do if I arrive in my sports car. No-one likes flashiness - it's one of the quickest business killers in the UK for sure. Could you imagine handing over your $50,000 Adwords cheque to a staff member at the Googleplex only to see him drive away in a Ferrari? You'd be a bit miffed ...

4:01 pm on Mar 19, 2005 (gmt 0)



> Could you imagine handing over your $50,000 Adwords > cheque to a staff member at the Googleplex only to > see him drive away in a Ferrari? You'd be a bit
> miffed ...

that's your problem though. It's the way you choose to see things...you know they can afford it. Personally, I have no problem at all because they made it honestly.

11:06 pm on Mar 19, 2005 (gmt 0)

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It's the way you choose to see things...you know they can afford it.

I don't think you understood my angle of perception, it had nothing to do with "jealousy" - more the impression that the money being paid in was going out on frivolous items rather than being plunged back into making their services better or some customer incentive rebates of some sort .... it was a generalisation on good business practice, or "public image control" rather than a personal attack on the wealth of Google employees.

As an example - personally, I am far more impressed with Microsoft as an internet company. I spend less on their services than I do with Google yet the customer service and the amount of "freebies" they throw at you is great. I've never recieved a thing from Google as an incentive .... just trying to get your money back after a big fraud hit is a nightmare!

4:29 pm on Mar 28, 2005 (gmt 0)

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They should have sold a billion.

Why would I care about them selling a chunk of their holdings. Insiders selling is like #30 in the factors that I would consider when evaluating a company. Diversification makes sense specially in their cases, when most of their wealth is tied to the company.

10:08 pm on Apr 6, 2005 (gmt 0)

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Yawn, Old News :)
But mine didn't get any replies because it didn't make the front page.

Oh.
How about making the news?

[webmasterworld.com...]

;-)