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by saint_abroad
1836 days ago
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> 1. Capital Gain taxes are delayed until you actually sell the stock. By far, the greatest increase in wealth (and inequality) is due to capital gains. > [...] capital gains are eventually taxed Normally, one might sell assets before a decline, and at that point gains (and therefore taxes) may be realised. This is avoided by HODL stock in holding companies (such as Berkshire Hathaway) which can rotate assets without ever incurring capital gains (or indeed income). |
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