Stock Foolishness: Wake Up Before It's Too Late. My Stupid Story of Camping Out.

All these posts about how fantastic it is that the stock is at 92. For those holding on, and not selling and diversifying into other investments, or aren't cashing out now; re-read this post when the market corrects. It will.

The best thing you can do is diversify your portfolio. Take CSCO profits now. Before it's too late. Take the proceeds, and simply invest them in simple index funds. Or; take profits now, and pay off debt. Mortgage. Car Loans. The future you, decades out, will thank you.

Yes, I had CSCO RSUs, CSCO Stock Options (the old Cisco Options from the late 1990s/early 2000s), and Cisco ESPP. Never, at any time, did CSCO ever exceed 25% of my total investment portfolio. Ever. I always took option and ESPP profits and rolled them into simple total market index funds. Max out Roth IRAs with the ESPP and RSU proceeds. You will thank yourself later.

Save your market gambling for using the Cisco Brokerage-Link function to day trade things like SPY and other index funds. Save the speculation for that aspect. Leverage Brokerage-Link functionality.

There is safety in being diverse. You are wasting a HUGE opportunity cost, by having an all-in-one basket, waiting to be all lost at the next correction, 2008-ish market meltdown, or CSCO stock demise. It is amazing yes it is at 92; but look at the curve of CSCO going back to 1990s.

Writing this as former CSCO, and living in a neighborhood with several CSCO friends, waiting for their payout, in their $750,000 homes, coupled to serious mortgages and BMW payments. Stop living life shackled to the speculation that this thing is going to keep running. Take your profits now and simplify your lives.

I was guilty of handing on too long to have options and ESPP accumulate, but then as things got very miserable with Cisco corporate ideology changes, I downsized my life financially. I felt shackled in staying because of a number on paper on what it could all be worth. I dumped the ESPP, the RSUs, and paid off all the debt. Then Cisco dumped me. All good, it was the best thing that ever happened to me. Now financially and more importantly mentally free from the whole game.

Writing this in hopes that somehow it inspires someone truly as miserable as I was at my last two years at Cisco to do the same. Now may be the time. Cash out. Get your life back.

By the way: AI play on it. Go put all your RSU shares, and ESPP shares, into ChatGPT. Go ask her how much you will get AFTER taxes. You will be astounded how much Uncle Sam is going to take. Another reason to take the money and run.

#401K #Advice #EmployeeRelations #FinancialServices #Layoffs

Comment! It's anonymous!

12 replies (most recent on top)

...ou support the $T investors who indirectly force Cisco to do LRs...

I don't support Cisco's random layoffs by management that most often needs to be laid off as well.

On the other hand I spent far too much of my time at Cisco fixing systemic issues that no competent technical leadership would have allowed to occur and they need to go.

stock market is fake & ghey. Feeding it means that you support the $T investors who indirectly force Cisco to do LRs...hypocrites.

Cisco stock helps me buy real-estate. Keeps $ in my local economy, helps me hire local contractors.

If you leave Cisco or reach retirement age, roll your 401k into a Self Directed IRA, buy a business, real-estate, other alternative investment.

Don't be constrained by the whims of the stock market, who is crazier than your psychotic Ex.

...but there’s a special little thrill in becoming a shareholder of the competition.

Many companies recognize this as a conflict of interest and their employee contracts don't allow for this.

@an l ain’t mad at cha! But I am laughing at ya. We who didn’t sell over emotion, made some good money YTD!

@ar 😂 hahaha. Loved your comment. So true. I’ll see y’all at 120! I made a bunch of money. Not complaining

@an I hate to break the bad news to you, but you own these stocks in the ETF's you mentioned. Do a little research on the companies they own vs buying on returns if it's important for you.

Hey Tom Gardner, most of these goons sold at 42. Thanks for your foolish post.

I have such a distaste for Cisco and its never-ending layoffs that I sell my CSCO shares as soon as I can. I’d rather invest that money in competitors like ANET, PANW, or even ZM. Of course, I still put some into SPY and QQQ, but there’s a special little thrill in becoming a shareholder of the competition.

@OP Uncle Sam isn't alone. If you are unlucky, you also have an Uncle Gavin who will take his share too.

And be sure to set aside extra for the following year's estimated taxes...

Agreed it is sound to perhaps retain your own "sunk" cost, for example of ESPP, but do not become too leveraged in having a high percentage of overall portfolio, dependent upon CSCO, and living for potential "on paper" profits.

Don't make part of the now, current, life equation of staying at CSCO, especially for those living a perpetual miserable existence; on the premise of reconciling part of the reason to stay as being, "well, I'll be giving up all these RSU gains...if I leave".

It is always sane to take profits; especially if not happy day-after-day; call-after-call. Is it worth it?

You are talking like people put all their money in CSCO. I decided to let that part of my portfolio grow as it accumulates, more like a solid stock to live money in for long term (it won't vanish and it won't go ridiculously low). It pays dividends and it hold value long term. Right now it is hot but it will cool down. Not a reason to sell and trigger taxes when on high salary. Sell little by little when you retire.
So stop being so disperate about it and stop scarying people with your advice. There are good investment strategies to follow , in which holding the stock is a good decision. It is essential to diversify, yes , but I do that with surplus money so that all goes into anything else but csco. And if all you save and invest is what you put in csco then THAT IS A PROBLEM. Because you should save more and invest more

one last one. Go ask ChatGPT something like this "if I have 25,000 shares of Cisco ESPP stock, that I have invested as part of my salary, over a ten year lifespan, at a 10% discount, and the stock is now at $92; what is a rough ballpark calculation, using the stock price starting in 2015 and going until now, and purchasing the 25,000 share spread averagely over those years; of what Uncle Sam is going to take out in taxes? A rough estimate is ok. Assume the 25,000 shares were equally purchased annually over the past ten years."

The Final rough all-in estimate for taxes will be $290K – $340K total tax bill.

That does not include how much is disqualifying, how much is ordinary income, and what your tax bracket is.

Go ask and then re-evaluate exactly why you are staying. Uncle Sam is happy you are staying, and will be happier when you pay your taxes. Are you staying for him, or for your own peace-of-mind?

Thread regarding Cisco Systems Inc. layoffs

Stock Foolishness: Wake Up Before It's Too Late. My Stupid Story of Camping Out.

12 replies (most recent on top)

Post a reply