Ericsson Share Purchase Plan

[2bhealed]

Hi guys,

Since I work at Ericsson I have the option to put 10% of my monthly gross base salary into Ericsson B stocks which are worth 95 SEK right now.

The company will pay 15% net of my contribution back to me and they will also cover the tax.

Does this seem like a worthwhile investment? I’ve taken a look at the stock and it seems very stable but there isn’t much gain, although receiving back 15% seems beneficial.

I’m currently only buying and holding iShare Core MSCI World ETF Acc monthly and Xiaomi stocks.

 

[hugh999]

@2bhealed How soon can you sell? What are the taxes if you do so?

Needless to say, owning shares of the company you work in is extra risky - in a downturn you can lose your job and your investment will be reduced in value at the same time.

However with the extra risk free return it might be worth it, provided you sell as soon as it makes sense and reinvest it into your chosen ETF.
Same goes for the employment based option packages, I sell them as soon as they vest.

PS Dump the Xiaomi stock

 

[2bhealed]

@hugh999 I only know that when I leave it will automatically sell. I’m not sure if I can take it out anytime I want.

Taxes would be 15% on the profits.

Your point about the downturn is a very good point that I haven’t considered.

Honestly, I buy Xiaomi stocks from leftover money when I buy the iShare etf. I personally believe in the company which is why I plan to long term hold it. I’m open to opinions though.

Thanks for your advice it’s been very helpful.

 

[hugh999]

@2bhealed Yeah, check on conditions after you buy - but even if it is once per year it still makes sense.

Re Xiaomi - it's probably too small a position in your portfolio to discuss it. I'd still rather buy another ETF ( something like small cap value or just value). Everything you know about Xiaomi is known in the market and priced in. It's still a risky Chinese stock that can be hurt from Delisting from the US exchanges or banned from sales / Google ecosystem similarly to Huawei.