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Author: ThyPeace Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 426  
Subject: Re: Mars Date: 8/19/2008 6:22 PM
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I’ve never had a company go private on me before. Are there any special tax breaks since I’m being forced to sell my shares and it wasn’t my idea? Do I, maybe, not have to pay any taxes if I reinvest it within 30 days or something?

No, and no. You get to give Uncle Sam your hard-earned money that was supposed to sit there and quietly grow. Such is life when Mr. Buffett decides he likes a company more than he wants it to stay publicly traded.

I've been thinking about new ways to invest the money I put into it. I am a Very Small Investor. I DRiPed $1000 into WWY over the course of several months of scraping and saving, and I think I'll end up with about $1,600 when the deal's done. I'll have about a 60% gain, 15% of which will go to capital gains. So I'll end up with $1,510 to put somewhere else.

That leads me to look, again, at the BMW method stocks (which is how I identified WWY in the first place). Right now, the ones that are at historic 30-year lows are:

Fannie Mae, GM, Merrill Lynch, Ford, Citigroup, Merck, Colgate-Palmolive, Eastman Kodak, Fortune Brands, International Paper, Pepsi, and Motorola.

Hmmmmmmm. Hmmm hmm hmm. Maybe this time I won't post my analysis. I hear WEB reads here sometimes. Maybe he's stealing my ideas. (You can laugh now. I know less about investing than what's in his little finger.)

But I do know something about some of the things that the stocks on that list represents. The only ones I understand well enough to explain to my five-year old, though, are these:

- Car companies ("They make cars and lend people the money to buy cars, sweetie. Yes, that means they buy cars and then sell them to themselves.")
- International Paper ("They make paper.")
- PepsiCo ("Want anything to drink? They make it. Except maybe milk.")
- Motorola ("They used to make the insides of computers, but now they make fashion accessories, sweetie. Do you think this phone is cute?")
- Colgate-Palmolive ("They make dish soap and toothpaste and a whole bunch of other things we buy at the grocery store every week, even in weeks when the budget is a little tight.")

Huh. Okay, I think I know where I'm going to look further. Time to do some due diligence on Pepsi, paper, and Palmolive.
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