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No, because in order to achieve the same outcome you'd need to have $800K to buy AAPL in 2019. Taking your $200K in cash each year will result in buying $200K o
by potatolicious 4y ago
No, because in order to achieve the same outcome you'd need to have $800K to buy AAPL in 2019. Taking your $200K in cash each year will result in buying $200K of AAPL in 2020, $200K of AAPL in 2021, etc... which bypasses a great deal of the gains.
Part of the power of RSU packages is that is equivalent to a very large stock purchase that is a multiple of your earning power that you earn out of over time.
So yes, if you have a lot of liquid capital, taking a $200K/yr stock package from Apple in 2019 is "equivalent" to putting $800K into AAPL all at once. The trick is that more people can do the former than the latter.