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To: KyrosL who wrote (73569)	5/19/2010 12:45:57 AM
From: Maurice Winn	1 Recommendation Respond to of 74559

Yes, I formed a separate company for the purpose of investing, including speculating. <So how do you short in NJ. Do you create a separate speculative account? > Any capital gains the company has as a result of shorting J P Morgan and Wells Fargo will be taxable and any losses will be tax deductible. [I guess you mean NZ and not NJ...] When I lost money on Globalstar, the capital losses were not tax deductible. Similarly, my capital gains on Qualcomm have not been taxable. But now NZ has introduced a "deemed rate of return" and we are now taxed on the market value of the shares. I suspect their investigations into our case had something to do with that change in the tax laws. My wife and I have always invested with a view to long term returns from dividends. My ideal is that I never sell a share and pass it down from generation to generation. Sometimes reality intrudes on such ideas - such as the change in the government's approach to owning foreign assets. Sometimes other realities intrude which knock plans sideways. But QCOM has been a favourite now for 20 years and I have owned it for 16 years. Warren Buffett is betting against me on Wells Fargo so that makes it fun. When I saw him betting for it, I took up the challenge and decided to bet against him [admittedly, only after it had gone up 50% from his buy price so it's not quite as daring as it might seem]. Mqurice