Thread: Life A little thank you to Warren Buffet
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Old 03-04-2013, 12:54 PM   #62
Amnorix Amnorix is offline
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Join Date: May 2003
Location: Boston, Mass.
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Quote:
Originally Posted by Rain Man View Post
So now I have a strategy, and I stick to it religiously. I buy stock in lumps of $4,000 or $5,000. When I get to the point where I've made 20%, I sell out my original share and leave the profit in. That way, if the stock goes down I haven't lost any of my principal, and if the stock goes all Dell I'll still get the upside, albeit in a smaller dose. But I won't completely miss the boat.

So question -- do you stick to this even when the 20% increase is within the first year, such that it's a short term capital gain and you're paying taxes at ordinary income rates?

If so, brutal. Don't think I can handle that.
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