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To: Big Dog who wrote (4852)	12/11/1997 4:12:00 PM
From: Chuzzlewit	Read Replies (1) \| Respond to of 95453

Mike, there's a hidden benefit to MPT (aka buy and hold), and that tax avoidance. Someone on another thread characterized capital gains tax as the only avoidable tax. If you trade, you lose 28% of your profits to uncle Sam each year, but if you buy and hold, you get to keep it. Look at it this way, In order to equal the return of a buy and hold strategy which yields say 15% per annum, a trading strategy would have to yield 21% per annum. Of course, assuming you don't simply croak and pass the stock on to your heirs (which resets the basis!) you will have to pay taxes, but even there it is at 18%. Regards, Paul