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thevandman (< 20)

Would you invest in your own stock?

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February 22, 2012 – Comments (6) | RELATED TICKERS: AAPL , PG , SIRI

       We watch companies and analyze their quarterly announcements and stock prices. We ponder about future guidance, try to make sense of the past and drill down into current financial markets. We have a good idea about what we want to invest in, what companies we think are hot and which we wouldn't dare touch. Think for a second if you yourself were a publicly traded company. How well would your stock be performing?

 Reflect on your current situation, your relationships or even your current financial status. Is your job up to your expectations? Do you have positive cash flow? Perhaps you have $100 billion in the bank like Apple Inc. (or $100 thousand.) Maybe you expect a raise this quarter and would therefore boost your future earnings. How about your close relationships, is there high tension or talks of losing customers? Maybe you have a new friendship or business partner that will make a great acquisition. These are analogies, but you catch the drift.

How do you picture your future? Is it a penny stock on high speculation, with high hopes and big risks or rather a blue chip with stability and consistent results. Are you paying dividends regularly to yourself and others invested in you, similar to The Proctor & Gamble Company? You may find that you are shorting for the future and not investing for the long haul. Management should be strong and employees happy. If you're not treating yourself right, maybe its time for a new CEO or mindset to take the reigns.

Look at your stock's 52 week high and low. What is the best and worst thing that happened to your share price within the last year? Think about when you were beaten down and selling off. Did the last years of your life resemble Sirius XM Radio, seemingly at rock bottom only to make a stratospheric climb? Perhaps it was a great opportunity in disguise to learn from mistakes and go all in for the rebound.

This is a great exercise to use when looking at not only your future, but your past and present. Hopefully your share price is on track to be a high performer.


I currently hold positions in AAPL, PG and SIRI.

6 Comments – Post Your Own

#1) On February 23, 2012 at 11:33 AM, ikkyu2 (99.52) wrote:

I often think this through.  I am a doctor, so my stock is totally levered to the health care sector.  The work is important and enjoyable; the government fixes my prices; and I can't scale what I do, it is done one patient at a time.

I would not buy stock in my life on a bet, but as a life to live, you could do worse, I think. 

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#2) On February 23, 2012 at 12:07 PM, DJDynamicNC (55.48) wrote:

I love this blog post.

I've been rapidly expanding a new freelance business and recently acquired a new client. This complements my existing (and unrelated) freelance business as well as my "day job." Essentially, I've been able to monetize all of my hobbies, and my earnings potential has never looked stronger.

And I'm on the Fool, so clearly I'm taking my future seriously (but not too seriously).

Some uncertainty is on the horizon; I'm about to move to a new business environment in a foreign country. Questions persist about my adaptability to the new region, though confidence is high.

All in all, I would rate my stock at this time a buy.

(Disclosure: I own shares of DJDNC which may present a conflict of interest in positing a "buy" position)

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#3) On February 23, 2012 at 12:31 PM, Valyooo (99.82) wrote:

I think people often overlook the fact that their best investment is themself. 

Also, I work at a bank.  We make commission as part of our pay.  Some people will watch the stock market all day, watching their positions fluctuate $20-$30 instead of focusing on sales where they could make a lot more.  Makes no sense to me.

On a side note, I think it is foolish to invest heavily in the company you work for.  Terrible diversification.  I have about 13% of my IRA in my company, but I would not do more.

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#4) On February 23, 2012 at 4:58 PM, HarryCarysGhost (99.78) wrote:

I consider my self speculative.

So yes, I would buy stock in myself.

Might skyrocket or crash and burn...

We shall see...

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#5) On February 23, 2012 at 7:29 PM, awallejr (80.10) wrote:

Personally I expect to be paying dividends eventually.  So I would be a buy for the yield hounds.

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#6) On February 29, 2012 at 4:12 PM, lemoneater (86.84) wrote:

This is better than asking what kind of potato chip one would be though that can break the ice at a party:) I always find self-evaluation an interesting exercise.

My company must be in the spice industry--lemon zest, etc. I think it's a microcap. It experienced a recent hostile takeover attempt, but it's immediate future looks relatively stable. Soon it hopes to pay dividends again. 

 

 

 

 

 

 

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