Doug, since you are long on CSCO and, like everyone else who has held these share a few years, have seen your initial investment sky rocket, I have one question for you to ask yourself before you sell any of your shares with the intent of buying back in later: Just how low does CSCO hypothetically have to drop before I can buy back in [getting the same number of shares sold]?
Even with the 20% capital gain tax, CSCO probably has to drop further than you realize before you can buy back in without coming out flat. Also, depending on where you live, take the State tax due on your gain into account. Where I live, if I get a $10,000 gain before tax, after tax I'm down to $7,450.
I'm a long termer, too, Doug, and I'll ride the fluctuations rather than gamble on a possible pull-back that with my luck probably won't come.
Regards,
Lynn |
