Employee Stock Purchasing Programs (ESPP)

Hello Jeremy,

New to the PFC family, and soaking up all the content i can so far. I see everyone who has asked a question about their ESPP gets a discount on it. I unfortunately do not. I buy the common B stock of Berkshire Hathaway inc. I follow the two rules of PFC. Is it still a good idea to keep buying this stock from my ESPP that offers no discount or pays dividends or Should I keep buying just because?

From my personal experience, the only reason I am buying my own company’s stock is due to the discount, and I still cash it out after each purchase period and instead invest the funds into my broader, more diversified index fund portfolio.

Jeremy usually recommends 90% of your portfolio in diversified index funds and you can do whatever you want with the other 10%. If this company stock accounts for 10% or less of your portfolio and you’re happy buying it, then go for it!

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ahh yes I forgot about that 10%. thanks a lot bro. I just keep buying into it then.

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I’m curious about the details of your ESPP if there is no discount associated? Like how is that different from simply going to a brokerage and buying the stock like a normal investor?

But as @thberry10 mentioned, I probably wouldn’t go out of my way to buy it over an index fund without the discount, but if you want to overweight BRK.B as part of your 10%, go nuts! :slight_smile:

I thought the same as you. This is what Warren Buffet choose for us. Im a train conductor for BNSF Railway which he owns. We don’t even have a 401K match through Vanguard. I just don’t understand why our union agreed to this but that was before my time here.