19. Warren Buffett’s 2nd Rule – Understanding Capital Gains Tax

Download Preston’s 1 page checklist for finding great stock picks: http://buffettsbooks.com/checklist

Preston Pysh is the #1 selling Amazon author of two books on Warren Buffett. The books can be found at the following location:

In this lesson, students learned the importance of buying an asset that they can hold for ever. Buy purchasing a company that has long term prospects, the owner (or stock holder) doesn’t have to continually pay capital gains tax. When comparing the capital gains tax of a person that trades in the short term, it becomes very obvious that it’s not advantageous.

By purchasing a company with long term prospects, you’re not only minimizing your capital gains tax, but you also enjoy the sustained earnings through time.

Articles You May Like

The 7 Most Overvalued Buffett Stocks to Sell in March 2023 
Stocks making the biggest moves after hours: FedEx, First Republic Bank and more
3 Chinese EV Stocks Giving Tesla a Run for Its Money
445 TIP. The Fall of Netflix and Overlooked Assets w/ David Stein
GME Stock Alert: Investors Are Banking on an ‘Accidental’ Squeeze in GameStop