Friday 5 November 2021

Company stock

I have a small portion of investment in company stock via SPP where the company matches my investment. As of today, the amount is 1% of my net worth. The investment policy statement suggests I should keep the money invested for a long time but I can keep my investment in the company as long as I stay with company.

+ve's if I keep my investments?

The share price can increase and when I cash in at the time of leaving it could provide me with a few months of expenses.

The expenses (currency exchange) will be less if I sell my investments in one go rather than selling every year.

How will I invest the money if I cash in?

I may use it for expenses rather than investing if I cash in now. Considering I am planning for travel, I may use it, and keeping it in shares will avoid unnecessary expenses.

I would not be selling this company either as ROE is 15% and PE is only 22.73.

-ve's:

The share price can drop when I cash in and I will lose my capital.

I have to cash in when I leave the company, can not keep it for long for the price to recover in case of a drop.

Would I be buying this company now with my money if not for SPP? I do not think so.

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I do not see an urgency to sell now and probably will use it in case of an emergency.

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