Company Stock Ownership Risks Typically Outweigh The Reward

Many people acquire shares of their own companies stock over their careers and some even invest in additional shares in their retirement plans. Concentration risk is real, ask the employees of Enron. A seemingly great company’s shares could suffer a significant loss in value while the stock market soars to new highs. A more recent example of this General Electric which lost 42% in 2017 while the S&P 500 gained 21%. Diversification is a critical aspect of risk management and an important part of investment management and the financial planning process. Below is an article that explains this issue well.

Company Stock Ownership: The Risks Outweigh the Rewards

If you are unsure if this applies to you and/or would like assistance if diversifying your portfolio, please contact us for assistance.

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This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice.
 
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