While i was thinking about it 3 years ago. I am SOOOOO glad I never bought into the employee stock purchase plan. I would have lost tons of money.
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I assumed there was a look-back (purchase at lower of first and last day of period), but there isn't. That takes massive value off the table. It is an inexpensive option driven strategy that delivers more benefit that the 5% decrease in discount. Not worth it without a look-back.
A fool and his money vs scared money Don't make money who will win...
The shares I purchased at the end of June are doing well enough and I am collecting dividends. Don't hate on that 15% discount.
You’re getting a 15% discount plus a 7% dividend - scared money don’t make money
Be patient my little AVP, ESPP is not for everyone. I'm sure Truist will find another way to get their share from your paycheck.
Don’t believe the people endorsing it. 15% discount on stock that was down 17% at the time it was allowed to be sold.
The Enron takes… are lazy. Nothing similar there other then the lesson of never put all your eggs on one basket. Everyone’s welcome to their opinion but plenty of people think it’s a good buy right now.
First, everyone should make their own investment decisions based on their unique personal situation. However, my thinking regarding the “buy Truist cheap” strategy is this. There is an opportunity cost of investing in Truist. How has it performed, and how do I expect it to perform, relative to other opportunities / the broad stock market? I know my answer.
Also, when you think about a long term investment, I can understand wanting to buy at a discount. But, why buy a known poorly run company simply because the price has plummeted? And worse, a company with a) a management team selling profitable parts of the company, b) apparently little Board oversight, c) awarding themselves big raises - all while your investment craters.
Truist, in my opinion, is the absolute definition of what investors call a “value trap”. A stock that is cheap because it should be!
If you think Truist will be around in 15 years I've got some ocean front property right next to their headquarters I'll sell you at a 15% discount.
To the buy low sell high comment. I’m sure the Enron folks thought they were doing the same thing.
I was on a call last week and I believe they stated that starting next year we would only be able to buy it at a 10% discount. I bought the maximum possible this year. The purchase at the end of June was at a nice discount. Helped to dollar cost average my RSU payouts.
I thought the saying was buy low sell high? I’m happy I’ve had it maxed out at 15% since inception. I think I’m going to be quite happy in 10 years when I go to sell all my shares. Would you have rather participated in it and the stock shoot up and you buy less shares? You’re thinking short term and might want ti rethink
Just churn the discount, it’s free money
Actually, you will always make net positive cash flow by buying in and selling immediately upon delivery of the shares. At the 15% discount, you will clear ~8% net of taxes with this strategy due to how the plan is structured (not this holds at any bank with a 15% discount). The key is that the purchase is affected with options at the cheapest of the beginning of the period and the end. You only clear 10% if the cheapest is at the end. If the cheapest is at the beginning, you can make considerably more as a return.
Clearly there is a misunderstanding on how espp works. Depending on your strategy, stock price is irrelevant. Consult an accountant before you leave money on the table like mo--ns (yes, even considering the tax of selling immediately).
If you're selling your ESPP stock immediately you're hurting yourself on the taxes more than the discount for waiting a year for long term capital gains. But to your point volatility on the stock price.
I almost did but decided to put it to my 401k
I always sell the day after purchase which limits probability of the stock price declining. It is immediate 15% return. They did say they are decreasing the discount to 10% in 2024.
I did, but with 1% of my salary, with the mind of compounding the dividends over years if not decades. As long as the dividend is safe I don't give a rip.
I totally understand the difference of opinion though.
Kind of a d-mb comment. You could have sold the same day of the purchase and made 15%
Thankful I didn't believe in the stock or the management team.
At least we're not Enron....(yet)....
Fool me once shame on you, fool me twice shame on me…..former Colonial here.
Good for you pal. Keep patting yourself on the back.