Comments on: How Much Company Stock Should You Hold? http://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#utm_source=rss&utm_medium=rss&utm_campaign=how-much-company-stock-should-you-hold A personal finance blog teaching you how to live debt free and use credit wisely. Fri, 10 Feb 2012 15:18:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Merrill Idiothttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-64030 Merrill Idiot Tue, 23 Feb 2010 17:29:44 +0000 http://www.nodebtplan.net/?p=2738#comment-64030 Maybe I am an idiot, but I sold all of my Merrill stock (as an employee) when Merrill crashed in 4th 08 and converted to mutual fund. Then when ML stock became BAC stock, I sold the mutual fund shares and put all money in BAC stock. I think it was at 3.27, and in a year it is at 16. Risk has its virtues, and I am about to sell the BAC today and pump back into diversified investments since BAC is adding 10% common shares for TARP. Perhaps I can pump it back in BAC (or some of it) for a rise. I think this is the most exciting period for investors in a long time since nobody is an expert in uncertain eras. Maybe I am an idiot, but I sold all of my Merrill stock (as an employee) when Merrill crashed in 4th 08 and converted to mutual fund. Then when ML stock became BAC stock, I sold the mutual fund shares and put all money in BAC stock. I think it was at 3.27, and in a year it is at 16.

Risk has its virtues, and I am about to sell the BAC today and pump back into diversified investments since BAC is adding 10% common shares for TARP. Perhaps I can pump it back in BAC (or some of it) for a rise. I think this is the most exciting period for investors in a long time since nobody is an expert in uncertain eras.

]]> By: Kevinhttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-46712 Kevin Fri, 13 Nov 2009 02:00:43 +0000 http://www.nodebtplan.net/?p=2738#comment-46712 Wow. No other investments and everything in one company. A good company, but one company nonetheless. That's hard to believe. Wow. No other investments and everything in one company. A good company, but one company nonetheless. That’s hard to believe.

]]> By: Fianacial Dudehttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-46658 Fianacial Dude Thu, 12 Nov 2009 18:41:19 +0000 http://www.nodebtplan.net/?p=2738#comment-46658 Asa financial advisor I have a client who has several thousands of dollars in Publix stock. It is in the 6 figures. Only employees and share holders can own this stock. This guy has no other investments. Publix has enjoyed a 16% average annual return since 1959 but having you money all in one basket is not a good idea. Its a fantastic company, not much has beaten 16% average return. However, I am concerned about exposure and all his eggs in 1 basket. The S&P500 has FAR LESS risk than just 1 stock and it is up 210% over 20 years or 10.5%, so dont be fooled. That is an incredible return but its growth has exploded and is unsustainable at the same rate over the next 50 years. There can only be so many publix stores. Needles to say we will be moving some money. Asa financial advisor I have a client who has several thousands of dollars in Publix stock. It is in the 6 figures. Only employees and share holders can own this stock. This guy has no other investments. Publix has enjoyed a 16% average annual return since 1959 but having you money all in one basket is not a good idea.

Its a fantastic company, not much has beaten 16% average return. However, I am concerned about exposure and all his eggs in 1 basket. The S&P500 has FAR LESS risk than just 1 stock and it is up 210% over 20 years or 10.5%, so dont be fooled. That is an incredible return but its growth has exploded and is unsustainable at the same rate over the next 50 years. There can only be so many publix stores.

Needles to say we will be moving some money.

]]> By: Kevinhttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-28451 Kevin Mon, 10 Aug 2009 19:48:28 +0000 http://www.nodebtplan.net/?p=2738#comment-28451 @LuckyOne: Indeed you are lucky. Risk-embracing and lucky! As long as you realize you were indeed lucky -- that there are many others that did the exact same thing you did, but ended up with nothing -- then that's fine. Hard work has something to do with your career, but not necessarily to the price of your company's stock. Congrats on your success. @LuckyOne: Indeed you are lucky. Risk-embracing and lucky! As long as you realize you were indeed lucky — that there are many others that did the exact same thing you did, but ended up with nothing — then that’s fine.

Hard work has something to do with your career, but not necessarily to the price of your company’s stock. Congrats on your success.

]]> By: LuckyOnehttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27531 LuckyOne Mon, 03 Aug 2009 18:58:43 +0000 http://www.nodebtplan.net/?p=2738#comment-27531 I started working for my employer in 1995 when our stock was in the single digits. I was granted 3000-4000 shares as part of my hiring and immediately signed up for a 10% employee purchase plan. Over the years, our stock has skyrocketed and split 3 times, making me a millionaire many times over, all because of my company stock. My financial advisor hates it, since he always wants me to sell, sell, sell, but had I listened to him back in the 90's, I would never be where I am today. I do diversify and have many other investments, but I will never regret the financial moves I made in the early days of my career. Yes, I got lucky (very lucky) but I also worked very, very hard to get where I am today. I started working for my employer in 1995 when our stock was in the single digits. I was granted 3000-4000 shares as part of my hiring and immediately signed up for a 10% employee purchase plan. Over the years, our stock has skyrocketed and split 3 times, making me a millionaire many times over, all because of my company stock.

My financial advisor hates it, since he always wants me to sell, sell, sell, but had I listened to him back in the 90′s, I would never be where I am today. I do diversify and have many other investments, but I will never regret the financial moves I made in the early days of my career.

Yes, I got lucky (very lucky) but I also worked very, very hard to get where I am today.

]]> By: Famous money quotes edition of the COPFhttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27523 Famous money quotes edition of the COPF Mon, 03 Aug 2009 15:52:45 +0000 http://www.nodebtplan.net/?p=2738#comment-27523 [...] from No Debt Plan presents How Much Company Stock Should You Hold?, and says, "Should you own any company stock? Not normally, but there are a few [...] [...] from No Debt Plan presents How Much Company Stock Should You Hold?, and says, "Should you own any company stock? Not normally, but there are a few [...]

]]> By: Kevinhttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27420 Kevin Sun, 02 Aug 2009 19:08:56 +0000 http://www.nodebtplan.net/?p=2738#comment-27420 @Jared: Yea there will always be some dreamers... why not be happy with a guaranteed 15% return? @Golfing Girl: I'm sure you can use it to get some sort of financial advantage. @Tonka: Good question. Not sure why anyone would keep throwing money into their own company stock without selling. @Running Gator: And if the company goes under how much do you get? Again if you have a small percentage of your portfolio in company stock that's okay... but the people who put their life savings into one company's stock are complete bafoons. @Jared: Yea there will always be some dreamers… why not be happy with a guaranteed 15% return?

@Golfing Girl: I’m sure you can use it to get some sort of financial advantage.

@Tonka: Good question. Not sure why anyone would keep throwing money into their own company stock without selling.

@Running Gator: And if the company goes under how much do you get? Again if you have a small percentage of your portfolio in company stock that’s okay… but the people who put their life savings into one company’s stock are complete bafoons.

]]> By: The Online Investing AI Blog » Weekly Wisdom: The Pimp Power Of The Internet And Smart Record Companieshttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27393 The Online Investing AI Blog » Weekly Wisdom: The Pimp Power Of The Internet And Smart Record Companies Sun, 02 Aug 2009 09:13:57 +0000 http://www.nodebtplan.net/?p=2738#comment-27393 [...] Since we’ve entered an era where nothing’s too big to fail, No Debt Plan asks the question: How much company stock should you hold. [...] [...] Since we’ve entered an era where nothing’s too big to fail, No Debt Plan asks the question: How much company stock should you hold. [...]

]]> By: Running Gatorhttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27269 Running Gator Sat, 01 Aug 2009 01:32:56 +0000 http://www.nodebtplan.net/?p=2738#comment-27269 You missed an important point of most company purchase plans I've seen. You buy shares of stock at 15% below either the price at the beginning of the six month period, or the price at the end of the 6 month period, WHICHEVER IS LOWER. If the price has gone down from the beginning to the end, then you get 15% off the current price. If it has gone up, then you're gain can be a lot more significant. You missed an important point of most company purchase plans I’ve seen. You buy shares of stock at 15% below either the price at the beginning of the six month period, or the price at the end of the 6 month period, WHICHEVER IS LOWER.

If the price has gone down from the beginning to the end, then you get 15% off the current price. If it has gone up, then you’re gain can be a lot more significant.

]]> By: Tonka Beanshttp://www.nodebtplan.net/2009/07/30/how-much-company-stock-should-you-hold/#comment-27241 Tonka Beans Fri, 31 Jul 2009 18:51:48 +0000 http://www.nodebtplan.net/?p=2738#comment-27241 If you can avoid it, don't own any of your employer's stock. It goes against diversifying your assets. Why have your wealth tied to the fortunes of a company when your compensation is as well? If you can avoid it, don’t own any of your employer’s stock. It goes against diversifying your assets. Why have your wealth tied to the fortunes of a company when your compensation is as well?

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