There is no particular reason to think that people employed on Wall Street should on average be any better than anyone else at managing their own money; talent at selling derivatives or concocting mergers – or at HR or tech support – doesn’t translate directly into talent at picking stocks or timing markets. Nonetheless, investing failures of investment bankers seem to provide a deeper and more guilt-free schadenfreude than those of tech entrepreneurs or whatever, and so Bloomberg got to point and laugh at some bankers today:
Wall Street employees, who dispense financial advice to individuals and companies, aren’t following a basic investing tenet with their own money: diversification.
Workers at the five largest Wall Street banks saw the value of company stock in their 401(k) accounts, sometimes the biggest holding of those plans, decline more than $2 billion last year, according to annual filings. Those losses don’t include shares received as bonuses.
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