3 ms·
> it is not possible to invest in private markets responsibly, outside one’s employer’s stock I'd argue that if your employer is still private, investing in th
by est31 6y ago
> it is not possible to invest in private markets responsibly, outside one’s employer’s stock
I'd argue that if your employer is still private, investing in their stock is often quite unresponsible as well. Often you don't even get real stock but options, there can be arbitrary dilution, and there is no contractual right for you to get your money back (unlike if you invested money).
- JumpCrisscross 6y ago> investing in their stock is often quite unresponsible as well Often, but not always. You work there. And you are surrounded by others evaluating the same, or a similar, investment. That creates the possibility of an edge. That possibility doesn’t exist for non-insiders. Without those advantages you’re relying on “knowing the right guy”. Nothing more.
- est31 6y agoYou work at the place so you are already invested in them, and are surrounded by others who are also already invested in them. So you and your colleagues already do the bet that the startup is going to be successful, which might skew your judgement on further investment. Sure, you know more about the company than a small investor would, but neither of two cases give you a board seat, which would give you insight into how the company is really doing, and there are no regulated shareholder communications like a public company has.
- JumpCrisscross 6y agoNobody is arguing private employee stock is a good deal. Just that it isn’t necessarily a bad deal.