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I've always sold my company stocks soon as they were received. Then reinvested those funds in in either Vanguard index funds, or paying off school loans. Makes

I've always sold my company stocks soon as they were received. Then reinvested those funds in in either Vanguard index funds, or paying off school loans. Makes zero sense to tie up your entire income to one company. Your weekly paycheck, AND stocks are totally reliant on the same company performance.

deleted 9y ago
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mirceal 9y ago
this may be an unpopular opinion (especially if the stock is doing well) but I've also done the exact same thing (sell on vest + diversify).
- solotronics 9y ago
  if you think your company will outperform in the short term you could set up a stop loss limit to allow only a certain percentage of loss in your company stock that way you are only exposed to upside
  - brianwawok 9y ago
    limits are usually a guarantee you will sell at the very bottom of a crash. There are much better ways to diversify.. such as what others said - sell on the day you vest and buy an index fund.
  - amorphid 9y ago
    >> if you think your company will outperform in the short term... I believe no one can reliable predict which way a stock is likely to go. If there is a way to predict, only a few people know, and that prediction is soon baked into the stock price.
- himom 9y ago
  It’s a conservative play but an understandable one for older employees: it’s usually too risky to both work at a company and hold its stock. Diversify also means more than stocks and bonds... land, art, apartment buildings, laundromats, etc. https://www.betterment.com/resources/should-i-own-stock-in-the-company-where-i-work/ https://www.betterment.com/resources/should-i-own-stock-in-t...
- indemnity 9y ago
  Same. It’s the reason I own a house now (cash for 30% down payment in overheated market), and retirement savings are also pretty healthy due to cashing out company stock as soon as it vests. Also means I can walk any time I want, most I’d lose out on was next year’s RSUs.
- zokier 9y ago
  > this may be an unpopular opinion In what universe it is an unpopular opinion? I've always only heard the recommendation to diversify
  - mirceal 9y ago
    In the universe where I live. Colleagues holding onto the stock and scratching their head when they hear I sell on vest.

deleted 9y ago

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mirceal 9y ago

this may be an unpopular opinion (especially if the stock is doing well) but I've also done the exact same thing (sell on vest + diversify).

solotronics 9y ago
if you think your company will outperform in the short term you could set up a stop loss limit to allow only a certain percentage of loss in your company stock that way you are only exposed to upside
- brianwawok 9y ago
  limits are usually a guarantee you will sell at the very bottom of a crash. There are much better ways to diversify.. such as what others said - sell on the day you vest and buy an index fund.
- amorphid 9y ago
  >> if you think your company will outperform in the short term... I believe no one can reliable predict which way a stock is likely to go. If there is a way to predict, only a few people know, and that prediction is soon baked into the stock price.
himom 9y ago
It’s a conservative play but an understandable one for older employees: it’s usually too risky to both work at a company and hold its stock. Diversify also means more than stocks and bonds... land, art, apartment buildings, laundromats, etc. https://www.betterment.com/resources/should-i-own-stock-in-the-company-where-i-work/ https://www.betterment.com/resources/should-i-own-stock-in-t...
indemnity 9y ago
Same. It’s the reason I own a house now (cash for 30% down payment in overheated market), and retirement savings are also pretty healthy due to cashing out company stock as soon as it vests. Also means I can walk any time I want, most I’d lose out on was next year’s RSUs.
zokier 9y ago
> this may be an unpopular opinion In what universe it is an unpopular opinion? I've always only heard the recommendation to diversify
- mirceal 9y ago
  In the universe where I live. Colleagues holding onto the stock and scratching their head when they hear I sell on vest.