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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Larry S. who wrote (39979)3/4/2001 10:03:15 PM
From: Uncle Frank  Read Replies (1) of 54805
 
I wasn't suggesting "timing" an investment for tax purposes. But if one decides to "time" for market rotations, the resultant reduction in investment capital shouldn't be ignored.

>> My experience is that more money has been lost to avoid paying taxes than any potential tax liability.

Long term capital gains are just a pleasant consequence of long term investing, not a reason for holding a stock if fundamentals are changing or if you have lost confidence in them. I might add that, during the great tech bull market of 1999, I saw many traders incur tax liabilities and lose opportunities for appreciation needlessly as they traded in and out of stocks that were moving relentlessly upwards.

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