When One Stock Is Enough

Why should prying politicians prevent you from investing in what you know best: your employer?

Jon Corzine and Ted Kennedy want to save us from our greedy selves. The multimillionaire U.S. Senators are backing legislation that would prevent you from concentrating your 401(k) assets in your company's stock. The average American invests nearly 30% of his retirement account in his employer's shares. This federalized portfolio management has its genesis in the Enron disaster, in which thousands had their retirement savings devastated when the stock dropped from 80 bucks to 80 cents as fast as you can say, "I take the Fifth." And Enron was preceded by a few lesser disasters.

Employees at Procter & Gamble and...

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