Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Joel, when talking about cost basis, I referring to his suggestion about buying more company stock to reduce his cost basis. My point was that his cost basis was zero if he wasn't buying any of the stock himself. But you are right, and I should have added as an aside, that in a 401k, cost basis is irrelevant except in calculating performance.

As I mentioned, no single position should be overweight in one's portfolio and I recommended re-balancing if that became the case. I think I also asked the question of whether he believed that the company had growth potential or was likely to continue lagging or some such. I don't quite remember how I phrased it. But I would imagine there are probably restrictions on how soon he could actually sell the free company stock he was given should he decide he didn't want to invest in this company long term.

Who doesn't think we were saying anything different, just saying it differently...
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.