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Technology Stocks : Intel Corporation (INTC)
INTC 41.14-3.4%Jan 8 3:59 PM EST

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To: Robert Douglas who wrote (80583)5/7/1999 3:29:00 PM
From: GVTucker  Read Replies (1) of 186894
 
Robert: Thanks for making a rational argument.

This is a major reason why it is in the best interest of most individual investors to give much heavier emphasis in a very long term buy and hold perspective than a straight nominal measure of performance would justify.

Institutional investors, for good or for bad (primarily the latter), are rewarded purely for nominal performance. In the case of pension fund managers, this makes complete sense, as taxes are not a factor. Unfortunately, this is also the case for taxable institutional investors such as mutual funds. Mutual funds report absolute performance, and in spite of some financial planners' attempts, tax friendly money managers are not rewarded for their efficiency. The reward is in hot nominal performance, tax bill be damned.
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