Canadian Capitalist

I am reading yet another book on the fall of Enron (The Conspiracy of Fools by Kurt Eichenwald) and was surprised to read the following passages:

The first myth about the Enron fiasco was taking root. For years to come, the story would be repeated endlessly, in tones of righteous indignation. The greedy bigwigs at Enron had blocked the rank and file from selling their Enron shares, perhaps in a bid to slow the stock collapse.

But the story was false. In reality, over just five days, circumstance had prevented Enron employees, including senior officers, from slightly decreasing a loss of $3.83 a share in their retirement accounts. And when the chance came to sell, many bought. But in the public consciousness, heart-stirring mythology won out over lackluster fact.

The story may be false, but it does not change the fact that senior executives made out handsomely when many rank-and-file employees lost their pensions and investments. Enron is a cautionary tale for not being overexposed to company stock.

Bookmark:   del.icio.us Digg StumbleUpon

Related Posts:

• The Smartest Guys in the Room
• My Money Mistakes
• Bear Stearns’ Cautionary Tale
• Research on Financial Circumstances of Retirees
• My Dumbest Investment