to have a radio show called "real money" and i got a giant number of calls telling me to stop bashing enronwhy? because the callers had a ton of stock in the company. i then came back and explained that perhaps they needed to diversify away from enron. each time i did it, i heard about how they got discounts or how such a great company was too terrific to sell or the fact is that it was down so much. they couldn't sell. then one day it was gone. but many people have made this argument before and the company stock is still the number one investment. why? you probably feel like you understand the company you work for and the exclueses for informsing in what you know. that excuse doesn't cover it. you have to cut back, just cut it back tomorrow. diversification comes before everything else when you're investing. whether it be your discretionary portfolio or especially investing for retirement in your 401(k) so never put more than one-fifth of your retirement money in the stock of the company you work for doubling down is okay no more than that. it always carries risk beyond being undiversified