My company has an Employee Stock Purchase Plan (ESPP). I'm not sure how other companies do it, but I can elect to set aside a percentage of my paycheck, which goes into my Fidelity account. Then every quarter, that money is allocated to purchase my company's stock at 85% of the lowest value recorded over the course of the quarter. I understand that having a diversified portfolio is important, but wouldn't it make the most sense to have a majority of my portfolio come from my ESPP? It seems like on paper, every investment into the ESPP returns 15%+ as soon as the stock is purchased, so even if we trade flat for the next 10 years, I will have beaten the market average. Is there something I'm missing here or am I thinking about this all wrong?
Submitted May 23, 2021 at 08:48AM by mjcreech https://ift.tt/3yxrgLN
