This is Argyn's blog. I comment on topics of my interests such as software, math, finance, and music. Also, I write about local events in Northern Virginia, USA and all things related to Kazakhstan

Thursday, August 28, 2008

Coming Home to Roost

This is from Washington Post, By VIKAS BAJAJ and TARA SIEGEL BERNARD
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.

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