So I just landed a new job.. Ive been waiting since mid December for the final word... Finally got the call this week, and tomorrow will be my first day!!!! The company is Targa Resources.... Far as I've seen and heard, this is the top of the ladder in the trucking world!... Pay, benefits, bonuses, the whole nine yards! So of course I had to check out their stock... Ticker is TRGP.... From the outside looking in, seems like a solid investment... The dividends alone (having grown quarterly over the past 4 years to 91 cents per share now) are almost attractive enough to over look the fact that they fall into the extremely volatile oil/gas sector (all be it, they are a midstream company in large part), or even the horrid P/E ratio........ And the ability to keep growing through acquisitions (like the most recent Permian move) while shelling out nice dividends (and even nicer wages) is even more attractive But I'm not asking here weather or not to buy this stock... My question is about the concept of buying into a company you're intimately familiar with..... Seems there would be advantages, inside info that the general public just doesn't know... Being ahead of the curve when business is going south (or north)..... Perks of this nature in general So does anyone here own stock in the company they work for?... If so, has it benefitted you in any way??
When buying stock in a company you work for, you have to be very careful not to buy/sell any shares during restricted times. There are certain times you can not buy/sell because it is forbidden. Most often I hear that you should NOT invest in the company you work for. Have you ever heard the saying "Don't put all your eggs in one basket"? It's pretty self explanatory, but if you lose your job, the company goes under, the company hits a speed bump that slows them down and your stock tanks, etc. you could have some problems. Others will say you can have a position in a company you work for, but make sure you diversify quite a bit so if your company hits a rough patch, you aren't overly affected. The other problem is that you will inherently be biased. Sure you'll be OK adding on, because you still work for the company, etc. When it comes to selling though, taking profits, etc., will you be able to pull the trigger? Will you say to yourself "business seems fine", even though you're not sure what the big guys of the company know and have shared with their friends (illegally) so they could get ahead of the curve and move the stock price where they wanted it to go? Working for the company, you'll know more than the general public, but you will NOT know more than the 1% that actually moves a stock significantly. At the end of the day, it's your decision, though. I'm sure you can find some good articles on it that will give you differing opinions. That's just how I think about it in my own mind.
A solid answer And an aspect that hasn't crossed my mind yet.. Being bias that is.... And maybe already showing, since I chose it for the weekly pick contest here
It's dangerous. Imagine if you take your paycheck and put it into the stock. Then one day the company declares bankruptcy. All your savings are gone, and it's like you worked for nothing and moreover have no more job. Pretty much what Tormented said. There are startup companies that do not pay their workers, instead they give shares. It's a great idea for the company (only workers who really believe in the company would commit to such a thing, and they don't give up any cash).
I see the plot to this film now.... Makes sense... No matter how many baskets you put your eggs in, you wouldn't feed them back to the chicken Good advice... There are plenty of other stocks with good dividends that I could use to back up my trades
