Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: golfinvestor who wrote (81041)	9/21/2000 4:20:12 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 152472

The GOQCOM!!!!! investors are made up of two groups: 1. those who bought pre-1999, and are still holding. They took a big risk, made a very good decision, and have gotten rich. They are the LongTermEnthusiasts. 2. those who bought at any prices far above today's (that means much of 1999, and most of 2000). They are MomentumGuessers.

To: golfinvestor who wrote (81041)	9/21/2000 6:46:45 PM
From: waverider	Respond to of 152472

I think our experience here over the past 8 months has put that "I don't sell because of capital gains" to rest. Rick

To: golfinvestor who wrote (81041)	9/21/2000 8:39:53 PM
From: Jacob Snyder	Respond to of 152472

re: not selling for tax reasons: Well, now, let's do a few numbers on that hoary chestnut....... Let's assume that you timed things perfectly, and you are one of the geniuses who bought in early 1999 (or anytime earlier), and your average cost is near zero. Let's assume you pay Longterm Cap gains of 20%, so if you sell, you get to keep 80%. Let's assume you can buy the stock back at 68 tomorrow morning. X times 0.8 > 68 Solving the equation, X > 85. So......., if you had sold at any price greater than 85, (that is, anytime from November 1999 into May 2000), you could pay your taxes, and buy back more QCOM shares than you originally had. I'm not saying LTB&H is wrong. I agree with that investing philosophy. It's the right method, but not for tax reasons.