Have You Been Burned Investing in Company Stock?

[Exile]

The stock of my former employer where I retired is down to 56 cents. A few years ago it was at $6.00. Fortunately I dumped that fund from my 401(k) long before it dropped this low, but not soon enough. I still lost money on the deal. I mistakenly thought it would rally and it never did. Nevertheless, the stock was not a major part of my overall plan, so I didn't get skinned too badly.

How have others out there fared with their investment in their company stock? Did it take a major hit in the meltdown? If so, how did this make you feel about your job and your employer?

[MoneyTrev]

It's the other way around for my friend. A close person I know owns a company and owns his company's stock and his stock has been rising a lot. In fact, all of the employees got bonuses in his company since they had such a great year.

I'm not going to reveal the name or owner of the company but I can tell you that the company is in the gaming field.

[mommyof4]

My bil worked for GM for years, and had most of his 401K in company stock. He's taken a huge, huge loss in the stocks.

I've also known people around my area who used to own a lot of Gateway stock. What a rip off.

[jIM_Ohio]

Our company stocks were best equity performers in 401k accounts for 2008.

PAYX for wife
SI for me (this is not saying much- some of my funds lost 60 percent)
of course that gives away who we both work for now...

[mommyof4]

Jim, I think my husband would agree with your quote in your signature- "One Person's Stupidity is another person's job security." He is a criminal defense lawyer.... no lack of clients in that field!

Now back to the topic....

[disneysteve]

Jim, I think my husband would agree with your quote in your signature- "One Person's Stupidity is another person's job security." He is a criminal defense lawyer.... no lack of clients in that field!

Unfortunately, the same could be said for the field of medicine. If everybody took good care of themselves, ate a healthy diet, exercised regularly, washed their hands frequently, didn't abuse drugs and alcohol and took their medications as prescribed, I'd be sitting around twiddling my thumbs most of the day.

Sorry for the detour. I've never worked for a publicly traded company so no personal experience with company stock.

[jIM_Ohio]

OT Stupidity

My best friend is a firefighter and he reminds me of that each time we discuss his job.