Investing in private company stock?

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
jbyoun1990
Posts: 22
Joined: Sat Dec 22, 2012 10:47 am

Investing in private company stock?

Post by jbyoun1990 »

......
Last edited by jbyoun1990 on Wed Mar 20, 2013 7:19 pm, edited 1 time in total.
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Investing in private company stock?

Post by livesoft »

I'm not interested in private company stock. This appears to be chain of grocery stores. If I look at other grocery chains stocks, I don't see any reason to own grocery chain stocks anyways.

If I worked for this company, I would not own the stock unless they gave me a huge discount to buy it and I could sell it the next day at full price.

Also how would anyone know what the price to pay should be if there wasn't an active market or auction in the stock? Generally, I've found that private stock prices benefit the owners and stiff the worker bees.
Wiki This signature message sponsored by sscritic: Learn to fish.
KyleAAA
Posts: 9498
Joined: Wed Jul 01, 2009 5:35 pm
Contact:

Re: Investing in private company stock?

Post by KyleAAA »

Ditto. I'd consider buying at a big discount but I wouldn't buy at "market" price. That money would be better put to use in a diversified portfolio.

Publix is my favorite grocery story, though.
livesoft
Posts: 86079
Joined: Thu Mar 01, 2007 7:00 pm

Re: Investing in private company stock?

Post by livesoft »

Wiki This signature message sponsored by sscritic: Learn to fish.
tim1999
Posts: 4205
Joined: Tue Dec 16, 2008 6:16 am

Re: Investing in private company stock?

Post by tim1999 »

Too illiquid for me. I once looked into buying the private stock of a local bank. There is no "market" and you can only sell if you somehow manage to meet another person who is interested in buying your shares. What if you can't find anyone to buy it from you? Then it's worth zero in my mind.

I'll also "second" the previous comment about grocery store stocks being awful investments in general. The only grocery chain in my area that's worth a darn is 100% privately held - and they are crushing the publicly-traded stores around here.
Valuethinker
Posts: 49036
Joined: Fri May 11, 2007 11:07 am

Re: Investing in private company stock?

Post by Valuethinker »

You can have fun with such things and good bragging rights with friends and neighbours when it IPOs at (hopefully) some huge premium.

However you will be very silent if it does not.

I have investments more than 10 years old in such things: my typical writedown (if not to zero) is around 90%.

So in conclusion:

- not more than 10% of your net worth in such things
- make sure you can afford to write off that 10%
- probably not more than 5% in any one such investment
Topic Author
jbyoun1990
Posts: 22
Joined: Sat Dec 22, 2012 10:47 am

Re: Investing in private company stock?

Post by jbyoun1990 »

......
Last edited by jbyoun1990 on Wed Mar 20, 2013 7:19 pm, edited 1 time in total.
User avatar
soaring
Posts: 1441
Joined: Sun Nov 18, 2007 8:09 am
Location: North Central Florida

Re: Investing in private company stock?

Post by soaring »

I think Publix is a fine company and a good holding just don't put all your apples in one basket. If I worked for them I would buy some if I planned to be there many years (of course you never know). My cousin worked in admin at hq in Lakeland Fl for 20 yrs until about 2000 and loved the culture of the company and Publix has a significant program helping others. We shop there for most groceries since we are several hours from Costco. When we moved back to Fl we made certain Publix was within shopping distance.

I know Publix mgmt determines the value of shares annually and one can't know how that is calculated.

IMO you might determine how much to buy evaluating:
What has the price determination been annually for past 5-10 yrs or so
Do they have any match when purchasing stock
What conditions must be met to sell

and you are right your fellow workers don't understand risk...heck most everyone doesn't understand risk. Don't follow in their tracks.
good luck
Desiderata
Post Reply