“For individual investors in after-tax accounts - a buy and hold a portfolio of individual stocks is a better philosophy than owning mutual funds because you can better control your capital gains. I remember after “Black Friday in 1987 most mutual funds lost considerable value and paid large capital gains which, for an individual investor, your balance on December 31 was down considerably from earlier in the year, but you had considerable “taxable” capital gains.
If you are investing in Tax-deferred accounts or ROTH accounts and your returns are not taxable in the year they are realized, there’s not as much advantage to investing in individual stocks.
Really enjoy these podcasts. Always informative.”
Eucha 01 via Apple Podcasts ·
United States of America ·
03/19/22