Published: August 28, 2008
Fannie Mae’s workers had $116 million in the employee stock ownership plan at the end of 2006. Today, it’s more like $17.5 million. Ouch.
“If you are going to invest in a single security, employer stock is a particularly stupid one to invest in because your human capital is tied up with your financial capital,” said Norman Stein, a professor at the University of Alabama Law School and a specialist in pension and employee benefits law.
It's especially stupid if you work in financial services company, because you're supposed to know what diversification is.