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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Seeker of Truth who wrote (20856)	3/21/2000 2:50:00 AM
From: Dinesh	Read Replies (2) of 54805

Malcolm I took the liberty of tinkering with Mike's numbers, but turning the portfolio over every 5 and 10 years (still within GG realm). I also posted the formulae if you wanted to tinker with the numbers in a spreadsheet. Initial capital $10,000. Time horizon 30 years. Growth rate 15% Strategies: 1. Sell after holding for 30 years, pay 20% taxes 2. Sell and pay 20% taxes every 2 years. Effectively grwoth rate of (1.15*2 - 1)0.8 = 25.8%, 15 units of time. 3. Sell and pay 20% taxes every 5 years. Effectively growth rate of (1.15*5 - 1)0.8 = 81%, 6 units of time. 4. Sell and pay 20% taxes every 10 years. Effectively growth rate of (1.15*10 - 1)0.8 = 244%, 3 units of time. final amt:if turned every so many years $248,616 2 years $351,618 5 years $407,076 10 years $529,694 30 years I love the power of buy and hold. There may also be some additional tax advantages if you are out of country for the major part of a year -- something you can easily fund out of that 20% <g> Regards Dinesh

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