Investment Bankers Can’t Be Bothered To Pay Attention To Their 401(k) Accounts

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.

Reference:
Deal Breaker
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