K#9. The power of calculated risks & perseverance
This week, my life changed.
Heyyy there 👋
Welcome back to K's DataLadder ✨! Each week, I share a story from my life as a Tech Data Scientist to help you level up in your career (and life sometimes).
I’ve started this newsletter two months ago and this week, we hit the 1k mark 🎉🎉🎉
I'm blown away by your support and our incredible community. Thank you for being here and inspiring me to work hard. I'm so grateful for each and every one of you 🫶
This week, I want to share a personal milestone that has transformed my life: selling all my vested Spotify stock.
This experience and the lessons I learned from it have been life-changing, and I believe they can be just as powerful for you. I hope this story inspires you in your own journey and shows you the incredible power of making bold, calculated moves in your career.
I know I promised to tackle the second part of A/B testing, but I’ll do it next week!
This week’s story
So when you join a tech company, you almost always receive a stock package as part of your total compensation. You usually have the option to take a mix between cash, stocks, and stock options.
I knew this decision held the potential of changing my whole life because when I joined Spotify, the stock price was near its lowest point ever.
The tech market was doing really, reaally bad. So I studied this decision very, veeery carefully. I basically tortured myself to death overthinking about it.
I asked my peers at Spotify who joined before me, for advice and almost everybody urged me not to take stocks. “Opt for cash, it’s safe, trust me” they all said.
But I decided not to.
Here’s why!
Life was financially tough for us for the majority of my upbringing. My father went bankrupt when I was 6, and left Morocco for seven years. So I grew up with a single mother living on whatever scraps my dad could afford to send us.
Because of that, my mom became extremely risk-averse when it comes to money and tried to instil in me the same mentality.
But somehow, I still turned out different, thank God.
I prefer taking calculated risks if there is a chance the outcome could change my life.
The same mindset pushed me to switch overnight from a Business to a Data Science degree despite coming from a non-technical background. Best decision ever.
So when it came to deciding on my stock package, I knew I had to take a chance. Knowing myself, the thought of missing out on a potential opportunity to change my life financially would haunt me forever.
So I made a conscious decision to risk it all. I chose a mix of stocks and the riskiest stock options. It takes a lot to make such a decision, because you need to consider two plausible scenarios: where you win, and where you lose it all.
I mentally prepared myself to lose money I was guaranteed to receive (had I picked the cash option) in exchange for the smallest chance of getting much more if the market recovered (with stocks/stock options).
I believed not only in my company's potential to succeed but I also trusted my instincts and went with a decision I could stand by, no matter the outcome – good or bad.
If you haven’t done that already, you can:
So was it worth it?
There is this quote by Warren Buffett that says:
“The stock market is the only store where when things go on sale, everyone runs out the door. You don’t want to be one of those people”
It perfectly illustrates what happened, because fast forward today, the stock price not only recovered, but increased fourfold. Against all odds.
And I couldn’t be more grateful to my past self for making this life-changing decision.
Over the last months, I gradually sold the stock I vested since I joined and this week I sold everything I had left. Tbh, I can’t believe that at only 27 years old, financial worries no longer burden me. I’m so grateful.
Why you should care
I share this story not to brag but because I want to inspire you to believe in yourself, work hard, and most importantly make bold, thoughtful decisions in your own career journey.
As we say: high risk, high reward.
Success is not just about raw intelligence, I’ve never been the smartest in the room, but I’ve made smart decisions in life.
Success is mostly about having the courage to take calculated risks, staying resilient, and keep pushing towards your dreams.
Some useful financial advice 🤑:
Strive for tech companies with growth potential, as the financial rewards can be exponential if you play your cards right and take thoughtful risks. Keep in mind that startups have slimmer chances of success, but higher potential for financial gain.
Before joining a company, do your research. Evaluate its future prospects and study its historical financials. Your success is tied to the company's trajectory.
Don't hesitate to ask for stocks if they're not part of the initial offer. It shows your belief in the company and guarantees you'll get a piece of the pie if things go well.
If possible, be strategic about when you join a company. Joining when the stock is at its peak will limit your potential gains, while joining during a dip could position you for significant growth.
If you're joining when the stock price is at an all-time high, then opt for a cash-heavy package. The people that urged me to take cash joined when the stock price was at its highest. When it went down, their compensation package wasn’t worth much or even anything for some. That’s a crucial factor to consider.
Invest in your financial education. The more you know, the better equipped you'll be to make life-changing decisions when opportunities arise.
At the end of the day, always trust and listen to your own instincts, regardless of what others tell you to do.
Please leave a ❤️ or a comment to let me know you read it because I have NO WAY TO KNOW 😭! I just wanna know I’m not speaking to a wall lol. Please 🥹
Until then, see you next week for more data stories 🫶
If you’re enjoying these insights, don’t forget to subscribe and follow along on YouTube, Instagram & LinkedIn for more updates and stories.
I don't walk, I run when I get a notification for your new article! and yes you're definitely not talking to a wall 💓
This was a brilliant read. I'm getting into Data Science as well with the potential to use my skillset in the finance niche as a quantitative analyst or the aviation industry. I love your medium and I wish you all the best on your future goals.