FWIW: I sold Berkshire

Stocks A to Z
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Today, I raised more cash, by locking in many of my profits, sold berky, ford, XOM, OIH, XOP, XLE…

IN the past, when I sell it is at least a temporary market bottom. Good luck.

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If you sold BRK at ~$345 (today’s price), then you are probably going to pay 15% or $51 in taxes (unless it is in a tax deferred or Roth IRA account).

To get back to where you are today, you would need BRK to be at $293 or PBV of 1.27

You could obviously use the money for another opportunity.

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I hear you on the taxes. Your tax math is bit off, you pay the taxes not on sale price but on gains. My cost basis is $200 on my taxable account. I have earlier rotated around $280 on my retirement account. In any case, I have accepted that I will pay taxes.

If don’t fight the FED is true on the way up then it should be true on the way down too? right? Fed seems to be motivated to break the back of the inflation. Will that result in some policy errors? Can they really do QT at $90 B a month rate?

We have to see. So I am prepared to raise more cash and stay on the sidelines.

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IN the past, when I sell it is at least a temporary market bottom.

So far so good.

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Love the sense of humor. When you sell, we can even have the “King Bottom”

great that you have a sense of humor

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If you sold BRK at ~$345 (today’s price), then you are probably going to pay 15% or $51 in taxes (unless it is in a tax deferred or Roth IRA account).

To get back to where you are today, you would need BRK to be at $293 or PBV of 1.27

Nope, nope, and nope.

You pay tax on the gain only. If you bought BRK many years ago for $0, then today before you sold it you had an asset that was worth $345 in sale value and -$51 in deferred taxes, for a net value of $294, which is what you netted when you sold it for $345 and paid $51 in taxes.

If it went down to $294 you could buy it back with the cash you had realized from selling it. If it then went back up to $345 again, you would own a share with sale value $345 and only -$7.50 in deferred taxes. You would have made $43.50 on the round trip.

The deferred tax obligation makes it so no any profitable series of buying low and selling high is still net profitable to you after taxes.

R:

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