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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: mister topes who wrote (3652)2/25/1998 10:21:00 PM
From: Rock Fish  Read Replies (3) of 42834
 
>Such people know they are taking undue risk but do
>so anyway to make a killing in the company they work
>for. Happens all the time.

This is extremely common in the high-tech sector.
Most of these people devote modest amounts of
excess cash to their employee stock purchase plan.
This, coupled with stock options, can create an
unbelievable amount of equity when a high-tech company
does well.

The 1000 shares of Intel stock at IPO given to some
employees would now be worth nearly $5 million.

There are thousands and thousands of Microsoft
millionaires who have held on to their stock
without diversifying. The risk is
a matter of difference between retiring
a millionaire (Through 401ks and DCAing
into other mutual funds) versus retiring a
multimillionaire (401k + other mutual funds +
lots of Microsoft stock). You have to know
when and when not to ignore the 4% rule.

--
Rock Fish
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