First it is a private company, not listed on any exchange.
Second it makes money. Good money.
Third, it's now paying a dividend. Last year the dividend yield was 12%
The prior years dividend yield was 10%.
I get to buy the stock at book value. Book is north of 250mm. A similar firm just sold for 2.2xs book.
It seems like a no brainer.
Down sides are this. You can't leave the firm with the stock. You have to sell it back at book. Also the chairman and president at +|- 70 yrs old and they own a boatload. I think they try an monetize their holdings of 10-20mm+ at something closer to 2x book before they walk out the door.
How much of your net worth would you invest in a company you work for?
Sent from my iPhone using Early Retirement Forum
Second it makes money. Good money.
Third, it's now paying a dividend. Last year the dividend yield was 12%
The prior years dividend yield was 10%.
I get to buy the stock at book value. Book is north of 250mm. A similar firm just sold for 2.2xs book.
It seems like a no brainer.
Down sides are this. You can't leave the firm with the stock. You have to sell it back at book. Also the chairman and president at +|- 70 yrs old and they own a boatload. I think they try an monetize their holdings of 10-20mm+ at something closer to 2x book before they walk out the door.
How much of your net worth would you invest in a company you work for?
Sent from my iPhone using Early Retirement Forum