Quote:
Originally Posted by gekkoplus
I too was "options averse" until recent days. My previous company, a private start-up, had offered me a large number of stock options that would reduce a big chunk of my salary. At that time, I was completely new to the options world, and I chose a fixed base salary over options.
Just after one and half year or so, this company was bought out and I heard that many of my colleagues made a fortune overnight. That somewhat jolted me and made me a little more open to at least investigate the opportunity.
I am not a great fan of hit and miss, but I do now realize that one hit can potentially compensate for thousand misses.
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Yes, but without knowing the specifics of the company you work for, isn't it just as possible for the opposite to be true, and your colleagues could have lost a fortune overnight? Enron is the classic nightmare scenario.
I don't think stock options is necessarily a bad thing either. We had someone who asked about it for Novo Nordisk a little while back, and I made the uncharacteristic recommendation of 10% (instead of the usual 5%). However, I do think that having too much into any one stock could set your entire portfolio off-kilter... unless that is exactly what the person wanted to do.
But that's just me.