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Shares Thread for the next Gordon Gekko's

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  • Hi all, I've been following this thread for a while and thought it was a good place for a newbie investment question. I work for a subsidiary of a FTSE 100 company and have a modest SAYE scheme maturing this year. It sounds like the consensus here would be to reduce risk by selling the shares I end up with and putting the proceeds into some funds instead. Would that always be the best approach? The org I work for seems to be well-regarded as an investment atm, but the discussion here definitely suggests exposure to a single company is unwise regardless of how well it's doing.

    Any tips from those in the know much appreciated!
  • Personally I’ve worked at two companies with share saves and sold as soon as I could, on the basis if it went wrong it could all go wrong, redundant so no salary, pension deficit and savings depleted if the share price tanked.

    I just don’t like a lot of eggs in one basket so does depend what else you have. But never a bad time to take a nice profit.
  • Cheers Rob - really good point re. salary and savings both being dependent on one organisation.
  • edited January 12
    You say modest, so I'm assuming your not paying in the £500 per month maximum. I also assume you were given a 20% discount on the market price at the time the option was granted. As you are considering taking up the option I also assume that the current Share price is higher than the price you were granted the option at. Therefore making you a profit.

    It's true that all EGGS in one basket is not a good investment. However, without knowing what you deem to be modest, can I suggest that currently you only have one egg. If you take the shares and sell that incurs a cost, you pick a fund and invest that incurs a cost, which fund do you pick ?.

    If we are talking under £5000 I'd stick with my shares. When your next option matures you may wish to review, as you now have eggs. Over £6000 I'd maybe sell 50% and put into fund.

    Iv had Share options that matured which i have held and made fortunes. However, as. Lloyds Banking employee in 2008 I had a large number of eggs in one basket. I lost tens of thousands.

    This is my opinion , and I'm no Financial advisor. But, having a diverse portfolio on very small sums, will likely eat up returns with costs.

  • edited January 12

    You say modest, so I'm assuming your not paying in the £500 per month maximum. I also assume you were given a 20% discount on the market price at the time the option was granted. As you are considering taking up the option I also assume that the current Share price is higher than the price you were granted the option at. Therefore making you a profit.

    It's true that all EGGS in one basket is not a good investment. However, without knowing what you deem to be modest, can I suggest that currently you only have one egg. If you take the shares and sell that incurs a cost, you pick a fund and invest that incurs a cost, which fund do you pick ?.

    If we are talking under £5000 I'd stick with my shares. When your next option matures you may wish to review, as you now have eggs. Over £6000 I'd maybe sell 50% and put into fund.

    Iv had Share options that matured which i have held and made fortunes. However, as. Lloyds Banking employee in 2008 I had a large number of eggs in one basket. I lost tens of thousands.

    This is my opinion , and I'm no Financial advisor. But, having a diverse portfolio on very small sums, will likely eat up returns with costs.

    Whereas I am. In general terms a number of funds spread across different asset classes is usually the way to go & if you use an ISA its all tax free.

    But not knowing your age, attitude to risk, other savings or debts, time horizon, shoe size etc etc I couldn't really say anymore.
  • As an aside you can exercise your option , and transfer the shares into an Isa without doing a Sell/buy as long as you do this within 90 days of exercising your option. So I'd take shares and then if not already utilized, move them into a share Isa.
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