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Technology Stocks : Dell Technologies Inc.
DELL 118.05+0.6%2:26 PM EST

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To: Lee who wrote (39731)4/30/1998 3:01:00 PM
From: Chuzzlewit  Read Replies (1) of 176388
 
** OT **

Lee, that's great news, not a bummer! Now you need to adjust for taxes and the difference will get even larger. Try this: assume a growth rate for a stock (any growth rate will do). Now assume that you are a trader and so pay taxes annually on your gain (28%). Now assume you buy the same stock at the same growth rate. Do this for a 10 year period of time, and then pay taxes at 18% and look at the difference annualized. Here's an example:

Suppose we are talking 20% over 10 years. As a buy and holder you would net (annualized after taxes) 18.05%. But if you were a trader, you would net 14.4% after tax. That means that for the trader to merely do as well as the buy and holder he would need to gross 25.07%.

Do try this at home kids!!!

TTFN,
CTC
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