By firstname.lastname@example.org (Singapore Man of Leisure)
During my early investing days, one of the biggest corporate failure (and fraud) in the US was Enron.
Enron went into bankcruptcy late 2001.
One interesting but sad footnote was that quite a few Enron employees lost their life savings for they had invested heavily into Enron shares…
They exercised the stock options they were given and piled into their own company’s stock when Enron was flying high during the bull market.
Now beside losing their life savings, they are out of a job when Enron collapsed… Double whammy!
This Enron example was used by many financial advisors to warn clients never to go all in with such a risky concentrated bet – buy stocks in the same company you worked for.
However, try telling that to the employees of Apple, Amazon, and Facebook who bought their company’s stocks. Shouldn’t they have an edge over outside minority retail investors? I mean the company you worked for, do well do bad, you don’t know?
Its a dilemma isn’t it?
Whether to be a Koala or Panda bear specialists who only buy nothing but Singapore stocks – live in Singapore, work in Singapore. What? Me worried?
We should have an advantage since we are Singapore born and breed right?
Or …read more