Comments on: Don’t Invest Money in Your Company’s Stock http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html News for Consumers in Changing Times Sun, 12 Feb 2012 04:49:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: daddypaul http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html/comment-page-1#comment-7222 daddypaul Fri, 26 Mar 2010 07:16:58 +0000 http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html#comment-7222 Great read. I agree 100% Great read. I agree 100%

]]> By: Anonymous http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html/comment-page-1#comment-994 Anonymous Sat, 27 Oct 2007 19:11:00 +0000 http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html#comment-994 I worked for one of the big tech firms in the late 90's. Fortunately I was smart enough not to put any money from my 401K into company stock but I did put 10% of my salary into an ESOP program where you could buy company stock at 85% of the lower of the beginning/end of year stock price. While this amounted to getting at least a 15% discount on the stock I still lost about 40% on that investment when the tech bubble burst. The lesson to be learned here is if you buy into an ESOP sell the stock as soon as you can.<br/><br/>Remember diversification is your friend. I worked for one of the big tech firms in the late 90′s. Fortunately I was smart enough not to put any money from my 401K into company stock but I did put 10% of my salary into an ESOP program where you could buy company stock at 85% of the lower of the beginning/end of year stock price. While this amounted to getting at least a 15% discount on the stock I still lost about 40% on that investment when the tech bubble burst. The lesson to be learned here is if you buy into an ESOP sell the stock as soon as you can.

Remember diversification is your friend.

]]> By: DebtBeater http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html/comment-page-1#comment-930 DebtBeater Tue, 18 Sep 2007 12:03:00 +0000 http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html#comment-930 I've actually avoided investing too much in company stock since I lost a good 30% of my portfolio once upon a time.<br/><br/>Just recently, the 401k statements were handed out at the office and I heard moans and groans because of a downward trend the last couple months in the company stock and just about everyone had a majority of their portfolio piled on it.<br/><br/>Needless to say I was the only one with a positive statement. :) I’ve actually avoided investing too much in company stock since I lost a good 30% of my portfolio once upon a time.

Just recently, the 401k statements were handed out at the office and I heard moans and groans because of a downward trend the last couple months in the company stock and just about everyone had a majority of their portfolio piled on it.

Needless to say I was the only one with a positive statement. :)

]]> By: Anonymous http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html/comment-page-1#comment-928 Anonymous Mon, 17 Sep 2007 15:29:00 +0000 http://www.americanconsumernews.com/2007/09/don%e2%80%99t-invest-money-in-your-company%e2%80%99s-stock.html#comment-928 I get the point, but I don't globally agree with this statement.<br/><br/>As a person in his 20s, I can incorporate a good deal of risk in my protfolio. For a few years, I invested heavily in forein stocks. <br/><br/>About 6 weeks ago, I invested a lot of my 401k into company stock. The goal was that I expected the stock market to go down a bit through the end of the year and my company stock is a very slow moving stock with high dividends. The goal was to ride out a wave of uncertainty. Had this been in an IRA, I would have spread it out over less risky investments. But the 401k is much more limited and the company stock was underpriced at the time. <br/><br/>Many will disagree with me, but I actually moved money to my company stock to AVOID risks. So far, it is beating the market as it hasn't moved much in the 6 weeks and the market has lost 2.5% or so. I get the point, but I don’t globally agree with this statement.

As a person in his 20s, I can incorporate a good deal of risk in my protfolio. For a few years, I invested heavily in forein stocks.

About 6 weeks ago, I invested a lot of my 401k into company stock. The goal was that I expected the stock market to go down a bit through the end of the year and my company stock is a very slow moving stock with high dividends. The goal was to ride out a wave of uncertainty. Had this been in an IRA, I would have spread it out over less risky investments. But the 401k is much more limited and the company stock was underpriced at the time.

Many will disagree with me, but I actually moved money to my company stock to AVOID risks. So far, it is beating the market as it hasn’t moved much in the 6 weeks and the market has lost 2.5% or so.

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