Using the SECURE Act 2.0’s RMD Rules to Your Advantage
Aaron Levitt
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One of the biggest and most important positions of the bill deals with...
Cembalest found that, over the long run, some companies did substantially outperform the broad market and maintain their value. However, the odds were stacked against the typical concentrated holder because there was a far greater risk of permanent impairment.
As you consider this list, think about how many of these events are predictable, even by the most senior of company executives. And think about how many more reasons Cembalest could have listed. And then, remember, that the future will provide still new reasons.
Consider the example of my friend who had purchased Cisco at $5 and watched it rise to $80. In addition to the mistake of believing he was playing with the house’s money, he may not have been willing to sell because of the large tax bill. After watching it drop to $13, you can be sure he would have been happy to have sold and given Uncle Sam his due. One of my favorite sayings is that there is only one thing worse than having to pay taxes — not having to pay them.
Concentration brings both the opportunity for great returns and the agony of disasters. For investors who have a relatively low marginal utility of wealth and thus should be risk averse (having already “won the game” by achieving sufficient financial wealth to maintain a more than acceptable style of life), having concentrated positions is an imprudent risk. If you find do yourself with a concentrated position, don’t just sit there, trapped into inaction by the biases we’ve discussed, or one day you might find that you have turned a large fortune into a small one.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
One of the biggest and most important positions of the bill deals with...
News
Markets have continued to rally these past two weeks, after the Federal Reserve...
Justin Kuepper
|
We'll look at direct indexing and whether it's actually a better alternative to...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...
Cembalest found that, over the long run, some companies did substantially outperform the broad market and maintain their value. However, the odds were stacked against the typical concentrated holder because there was a far greater risk of permanent impairment.
As you consider this list, think about how many of these events are predictable, even by the most senior of company executives. And think about how many more reasons Cembalest could have listed. And then, remember, that the future will provide still new reasons.
Consider the example of my friend who had purchased Cisco at $5 and watched it rise to $80. In addition to the mistake of believing he was playing with the house’s money, he may not have been willing to sell because of the large tax bill. After watching it drop to $13, you can be sure he would have been happy to have sold and given Uncle Sam his due. One of my favorite sayings is that there is only one thing worse than having to pay taxes — not having to pay them.
Concentration brings both the opportunity for great returns and the agony of disasters. For investors who have a relatively low marginal utility of wealth and thus should be risk averse (having already “won the game” by achieving sufficient financial wealth to maintain a more than acceptable style of life), having concentrated positions is an imprudent risk. If you find do yourself with a concentrated position, don’t just sit there, trapped into inaction by the biases we’ve discussed, or one day you might find that you have turned a large fortune into a small one.
Receive email updates about best performers, news, CE accredited webcasts and more.
Aaron Levitt
|
One of the biggest and most important positions of the bill deals with...
News
Markets have continued to rally these past two weeks, after the Federal Reserve...
Justin Kuepper
|
We'll look at direct indexing and whether it's actually a better alternative to...
Mutual Fund Education
Justin Kuepper
|
Let's take a closer look at how ESG investments have outperformed during the...
Mutual Fund Education
Daniel Cross
|
While CITs and mutual funds share many similarities, there are some key differences...
Mutual Fund Education
Sam Bourgi
|
The phrase ‘bear market’ has been thrown around a lot lately, but it...