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Home » Home Stock Syndrome™: Why Holding Onto Your Company Stock Might Be Riskier Than You Think

Home Stock Syndrome™: Why Holding Onto Your Company Stock Might Be Riskier Than You Think

Estimated reading time: 4 minutes

Introduction

Most of us don’t think twice about trimming down concentrated risk in our portfolios—unless it’s our own company stock.

Sound familiar?

You’re risk-averse everywhere else in your investments, but when it comes to your RSUs, stock options, or ESPPs? You just… hold. No questions asked.

I’ve been there too.

In fact, it was while watching my own emotional response to my husband’s RSUs that I coined a term for this phenomenon:
📈 Home Stock Syndrome™

What Exactly Is Home Stock Syndrome™?

definition of home stock syndrome

Home Stock Syndrome™ is the quiet bias that shows up when you underestimate the risk of holding your own company’s stock—not because the fundamentals support it, but because your emotional attachment says it feels “safe.”

You work there. You believe in the mission.
Maybe you even feel like selling the stock is a vote of no confidence in the very company you pour yourself into day after day.

That emotional loyalty can cloud even the sharpest minds.

What Home Stock Syndrome™ Sounds Lik

  • “It’s different—this is my company.”
  • “I’ll just wait until the stock rebounds.”
  • “I know the leadership team. I trust them.”
  • “It’s not that risky. I’ll deal with it later.”

But here’s the truth:
🧠 If this stock wasn’t tied to your company, you wouldn’t treat it the same way.

You’d diversify. You’d manage your exposure.
You’d run the numbers with clear eyes.

Why It’s a Problem (Especially for Women in Pharma & Corporate Leadership)

If your compensation includes RSUs, stock options, or ESPPs (which it likely does), you’re already relying on your company to provide a significant portion of your income.

Add in stock comp—and suddenly, your income, your investments, and your net worth are all tied to one company.

That’s a lot of eggs in one basket.

Now layer on industry-specific risks like:

  • Mergers & acquisitions
  • Market volatility
  • Internal restructures
  • Leadership turnover

…and that emotional attachment to company stock? It’s no longer harmless. It could quietly derail your retirement plans if you don’t have a clear, structured strategy.

How to Know If You’re Caught in Home Stock Syndrome™

Ask yourself:

  • Do I know what % of my portfolio is in company stock?
  • Do I have a plan for when and how to sell?
  • Am I holding onto shares simply because it feels safer than letting go?

If you’re unsure about any of those, that’s a sign it’s time to pause and take a closer look.

What to Do Instead

The good news? This is fixable.

Here’s where to start:

  • ✅ Create a personalized strategy around your RSUs, options, and ESPPs
  • ✅ Understand the tax impact of exercising and selling
  • ✅ Set clear thresholds for when to reduce exposure
  • ✅ Think of your company stock as just one piece of your overall wealth—not the whole picture

Final Thoughts

Home Stock Syndrome™ is emotional.
It’s sneaky. And it’s real.

But with a little structure and support, you can break free from it—and build a wealth plan that actually works for you.

Because your financial future deserves more than just hope and loyalty.
It deserves intention, clarity, and confidence.

Want help evaluating your current stock comp strategy?
Take the free Financial Freedom Assessment—designed specifically for women with stock compensation.

Clarity creates confidence. Let’s help you see the full picture so you can make smart, intentional decisions for your future.

👉 [Take the Free Assessment]

free financial freedom assessment

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Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No investment strategy assures a profit or protects against loss.