Regret of ESPP

Cisco / Eng Immsb
Nov 28, 2018 32 Comments

When I joined Cisco 4 years ago, I thought the stock will drop significantly (25 at that time) all my colleagues said it won’t go up anymore and probably will drop a lot (more than 15%), thus I didn’t enroll ESPP for my first 2 and half yrs! Now it’s 48 almost hit 50 couple months ago. So regret!

I think I lost more than 30k for this! :(

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TOP 32 Comments
  • MuleSoft Damndaniel
    ESPP is usually a no brainer. Dooo it!
    Nov 28, 2018 6
    • MuleSoft Damndaniel
      Regardless, you sell the same day. Worst case 15% discount
      Nov 28, 2018
    • New / Product iTri
      Dude you’ll get beat on the 40% tax rate. Hold for a year and pay 15% cap gains.
      Nov 28, 2018
    • SanDisk AqMult
      @iTri.. 40% tax is on capital gain.. not on principle + gain.
      Nov 28, 2018
    • Cisco / IT vzIq77
      You will get hit with the full tax on the discounted portion regardless of how long you hold the stock for. Holding it longer just means you pay less tax on the gains.
      Nov 28, 2018
    • MuleSoft Damndaniel
      Holding it longer also brings the risk of losing the gains if the stock tanks. FYi, that’s the paycheck money that we are talking.
      Nov 28, 2018
  • Google / Data
    345gaba2

    Google Data

    BIO
    10yoe BI/DW/python
    345gaba2more
    You think you lost 30k? Did you loose $500 mil by not playing quick pick numbers on Powerball lottery as well?
    Nov 28, 2018 5
    • Cisco / Eng Immsb
      OP
      That’s different-if I enrolled I definitely get 30k
      Nov 28, 2018
    • Cisco / Eng Immsb
      OP
      Price go up from 25 to 50 these 4 yrs
      Nov 28, 2018
    • Airbnb jim.hodlen
      well hindsight is 20/20
      Nov 28, 2018
    • New DuQvV7x
      This is now how losses work.

      You lost nothing.
      You missed an opportunity.

      Now you’ve learned about ESPP
      Nov 28, 2018
    • LinkedIn Zeiwkf5
      That not how decisions work. If you had held you would have been exposed to a ton of risk. In this case it would have paid off but that doesn’t make it a good decision.
      Nov 28, 2018
  • Cisco / Eng Immsb
    OP
    For new grad students: please enroll ESPP!!! Don’t lose the chance
    Nov 28, 2018 3
    • LinkedIn / Eng
      Gill Bates

      LinkedIn Eng

      BIO
      [Insert epic sax here]
      Gill Batesmore
      Except new grad students at snap
      Nov 28, 2018
    • Cisco / IT vzIq77
      First thing I did last November
      Nov 28, 2018
    • Airbnb jim.hodlen
      can you auto sell after espp purchase to get the 10% (before tax)?
      Nov 28, 2018
  • Cisco alcohol
    They give 15% discount on lowest price so even if stock drops you still make 15% profit by selling next day
    Nov 28, 2018 1
    • Cisco / Eng Immsb
      OP
      Was too young at that time and thought the price was the price of enrolled day
      Nov 28, 2018
  • Amazon 123raj
    You made your bed. Now ...
    Nov 28, 2018 0
  • Microsoft / Eng CrashOverr
    You lost millions for not buying bitcoin!!
    Nov 28, 2018 0
  • No one. Just learn your lesson of not taking investing advice from others and set up a strategy that takes your emotions out of the equation.
    Nov 28, 2018 0
  • I did way way way worst then you. Does this make you feel better?
    Nov 28, 2018 3
    • Cisco / Eng Immsb
      OP
      Thanks! Hope u r also learning a lesson-I started enroll one year ago...like around 38...
      Nov 28, 2018
    • Mine is not ESPP related.. just sold a lot of eBay at 20ish dollars when eBay and Paypal were still together
      Nov 28, 2018
    • Cisco / Eng Immsb
      OP
      My manager sold a lot of Cisco when hit 32 bc no one in our team thought it would exceed 30! They all stayed here 10 yrs.
      Nov 28, 2018
  • Hitachi Vantara DMT
    ESPP is free money. Never a good reason not to enroll unless you have cash flow problems. Conventional wisdom is to sell immediately to harvest gains and then diversify and kick back
    Nov 28, 2018 1
    • Microsoft / Eng CrashOverr
      Yep, but he is talking about keeping it
      Nov 28, 2018
  • Cisco randynash
    You probably lost more than 30k after tax money because even bonuses go into buying espp.

    Cisco's espp easily adds 10k after tax to your compensation
    Nov 28, 2018 1
    • Cisco / Eng Immsb
      OP
      Really i didn’t see that? Bonus also went into ESPP?
      Nov 28, 2018
  • Cognizant FlashX
    How much % of pay check can we contribute for espp purchase max ?
    Jul 23 0
  • VMware Abcd123!
    I know people who have done this. So you are not alone if that helps you feel better. Also, better late than never!
    Nov 29, 2018 0