Walter:**OT**
>The guy hasn't made
> any money or he is trying to cheat on his taxes. Else he would know.
This guy probably typifies a new breed of 'investor,' one with very little experience with the stock market. Not having that much capital to invest in the first place, he holds a stock until it has made a nice run, sells, maybe buys back in later or maybe moves to something else. When out with friends, he brags about how much money he made in the stock market so far this (or last) year. The amount he made is stated without taking taxes into consideration because he does not think taxes. Since he has never held anything a year he is probably paying 31%--maybe even 39%--instead of the 20% long termers pay. Guys like this say, "I made $12,000 on SUNW," instead of "I made $7,180 on SUNW," what he would have made if he lives in the State I do and is in the 31% tax bracket.
Buy quality in the first place; put the certificates under one's mattress; sell if one sees dramatic, negative prospects for the (long-term) future or has earmarked and now needs proceeds from some of the shares for something non-stock market (i.e. new house, children's education); or better yet, let one's heirs inherit the stock!
Lynn |
