I don't see how that follows. They were talking about the tax paid as a percentage of the sale proceeds. If you'd bought in at $2x as opposed to $x your sales proceeds would be half. Wrong. All taxes due are due on gains only. From the original post..."Assuming a 15% capital gains tax, if a stock has appreciated 10-fold the tax bill is about 13.5% of the sale price, if appreciated 20-fold about 14.3%. Many long term holdings have appreciated more than that."So if the gain was 20 times (or I paid x), I will pay 14.3% of the TOTAL proceeds in taxes, if 10 times (I paid 2x - missing the first doubling) I pay 13.5 of the TOTAL proceeds in taxes. Thus the amount of taxes paid on GAINs are not very different. Since tax is at 15% rate (on the gains), I submit that those gains are not very different either. Put another way, if my stock appreciated 20 fold, 5% of the stock's final value is my basis. If it appreciated 10 fold, 10% of the stock's final value is my basis. So I have made either 90% of my sale price or 95% of my sale price as profit. Either way, I have made an excellent choice. Compounding is a wonderful thing. If you know your company and nothing changes to change your mind about it's future, let it ride. Time is on your side.Teri
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