Maximizing Your 401k Contributions

June 4, 2021

Contributing to your 401k may not be the most glamorous topic in the investing world, but it is vital that you take advantage of this savings vehicle. Managed properly, the ability to set aside tax-deferred dollars to invest for your retirement will make an enormous contribution toward achieving your goals in the future while simultaneously […]

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Stock Option Vesting Explained

May 31, 2021

When a company gives you stock options as part of your compensation package, they’re essentially offering you partial ownership. However, your options usually must vest first, meaning you need to work for the company for a period of time if you want to actually receive that ownership stake. Companies generally use vesting to encourage you […]

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The Big Question: When Do I Exercise My Employer Stock Options?

May 24, 2021

As with any investment, knowing exactly when to sell employee stock options for maximum value is an impossible task. Markets are unpredictable as a whole and when we narrow our view to predicting the short-term fluctuations in price of a single stock, you may do just as well flipping a coin. Layer in the fact […]

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Concentrated Exposure: Just How Much Company Stock Can I Afford to Have?

May 17, 2021

In the words of the esteemed Warren Buffet, “Never invest in a business you cannot understand.” While this core component of Buffet’s investment process certainly has merit, all too often the principle is taken to extremes by individuals with robust compensation programs in their own company’s equity. After all, what business could you understand more […]

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So, You Have Company Stock Trading Restrictions: Blackout Periods & 10b5-1 Plans

May 10, 2021

At the top of nearly all publicly traded organizations, you’ll find key employees restricted from trading company stock for designated portions of each calendar year; typically, a window of time before and after all major financial reporting deadlines and surrounding any large events like mergers and acquisitions. These restrictions exist because such individuals are privy […]

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Illustration of Leverage in Stock Option Value

May 4, 2021

A lever works by reducing the amount of force required to move an object by increasing the distance through which the force acts. In the world of investing, leverage appears everywhere and is the act of using “borrowed” financial instruments (the lever) to increase the return on an investment. In our case, the fixed exercise […]

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What are Employer Stock Options and Why Would a Company Choose to Offer Them?

April 27, 2021

Not to be confused with options traded by retail investors, employer stock options are a form of compensation used commonly by both start-up firms and well-established public corporations. Essentially, an employer stock option is a contract between employer and employee that grants the employee the right to purchase a stated number of company shares at […]

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Buckhead Capital – Quarterly Commentary for First Quarter 2021

April 19, 2021

Highlights Adding to its 18.4% gain in 2020, the S&P 500 returned 6.2% in the first quarter. Just like the fourth quarter, value stocks outperformed growth stocks, in this case by 8.7%. The broadest measure of the fixed income markets lost 3.4% as interest rates rose in the quarter. Real GDP grew at an annual […]

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Understanding My Portfolio: Is My Portfolio Properly Allocated to Weather the Market Uncertainty?

March 15, 2021

The stock market is overvalued. You may find a few dissenting opinions out there, but statistics do not lie. The CAPE ratio (a measure of a company’s earnings adjusted for typical market cycles in relation to its share price and trusted measure of S&P 500 valuation) is currently1 35.08. In simpler terms, this means that […]

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The Time is Now to Be Treated Like a Real Person, Not a Number

March 8, 2021

In a world where discussions of complex issues are constricted to 2-minute segments on cable media and 280 characters on Twitter, thoughtful and long-form communication has been cheapened or neglected in our daily life. You’ve undoubtedly heard of the studies showing that the human attention span continues to shrink (8 seconds for the “average human” […]

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