Stock transactions Taxed

Hi all,

Over the past year, I have invested about 100K in the stock market, bought and sold quiet a bit at the beginning. No day trading by any means, but probably sold 30-40 times in that period. The value of my portfolio has grown to 450K and I expect it to reach 1.5 million by 2022. I am holding on to shares in 4 different companies, the majority of the value being in just one company (I know, I should diversify and I will). I plan on selling the shares of this one company in 2022, for around 1.4 million, should I plan on having to pay taxes on gains? I will have held these shares for close to 2 years, but my initial investment will have multiplied by 15…

Most likely no taxes, there are no capital gain tax in Switzerland (and it doesn’t sound like you’re doing professional investing long term).

That said you seem awfully certain of the prospect of this company, since you seem to expect 3x more in a year compared to the market consensus, do you know what it is you know that other investors don’t?

6 Likes

And what company is that ? we all ought to benefit :slight_smile:

3 Likes

Thanks, that’s what I thought but wanted a second opinion! I’ve done a lot of DD and am part of a small group of people who have invested also in this company. A few of which work or worked at investment banks. Let’s just say that this company got hit hard by COVID and prior to that was impacted by Trump policies. It’s currently at $3 a share and used to navigate between $18-22 prior to Trump. They also have improved their operations, cash flow and credit since Covid hit and basically set themselves up for success. I’d love to share but would hate it if for some reason things did not go as planned and people lost money as a result. I am 99.9% sure this will reach $10-12 per share by 2022, but not 100% sure.

Just to prove I’m not full of shit:

Everyone is responsible for his own losses not the ones sharing their portfolios. If you write things like this and do not fully disclose that creates a lot of frustration on the readers’ side of course especially if you expect the latter to answer your own questions.

6 Likes

Maybe consider cashing out your initial investment, that would cap the downsides :slight_smile:

That’s the past performance though, the rosy future may or may not happen (at least the market doesn’t seem convinced). FWIW, I’m sure we can find tons of stock which had the same performance over the past year, doesn’t tell us much about future performance.

4 Likes

Did we scare you with the Gamestop discussion? :grinning:

I don’t see sharing your view any different from people recommendinf VT all the time. If anything, this place could do with some more stock or market analysis instead of the neverending regular topics like cost optimization.

image

Does it start with a C and is based outside of US? :nerd_face:

1 Like

You think that he holds CRESCENT POINT ENERGY AKTIE | Aktienkurs | Kurs | 10326944 | CPG | finanzen.ch ?

I hold a bit over 0.03% of them in my portfolio.

I’m quite certain that they are a profitable value stock, otherwise they wouldn’t be in AVDV.

It does kind of tell us something.

Momentum has been quite a consistent factor. Stocks that had good performance in the last 12 month minus the last two months tend to outperform the overall market.

So it does start with a C but is definitely inside of the US, energy sector is correct too!

3 Likes

Centennial Resource Development, Inc. (CDEV)?

4 Likes

Hopefully not this one, Biden is taking a different road.

If you are referring to the consequences of leasing and development ban on federal land and water that is not going to impact CDEV

Yes I was referring to that and the fact that they want to push renewable energies.
I only saw that they are an oil producer. So I guess the government could implement some policies which would be not beneficial for an oil company. But I have no detail information about that company, so I guess you made your homework:)

I did do my DD. Biden is definitely going to have an impact on price of oil, in that it is going to go up and cost more at the pump for consumers. But this means higher revenue and share price also. Out of 80,000 net acre, CDEV only has 4% of that on federal land and they already have 50 approved federal permits and 75 approved New Mexico state permits so very little impact for them as the ban concerns new leasing requests.

What’s Biden plan that would trigger that? (Which part of the economy would increase oil consumption? Transportation post-covid? Higher tax on oil imports? Would the Gulf states or Russia stop producing?)

I wish Beeapanda good luck but I thinks it’s a very risky bet. I see a lot of people trying to find s shortcut to FI. Everybody who’s trying to copy this strategy should remember that people are way more likely to post their gains than their losses and there is a lot of survivorship bias involved. At least outside of wallstreetbets…

Especially to inexperienced people just lurking in the forum:
Please also consider a more mustachian way of investing for a more predictable outcome.

9 Likes

I could not sleep with that amount of profit coming from a single stock, good luck to you though, it’s gone pretty well thus far :slight_smile:

1 Like

Thanks, and I somewhat agree with you but it’s as risky a bet as your DD. I’ve probably spent hundreds if not over a thousand hours learning about this and am confident that no matter what, the share price will never again go below my average of 0.9759. I’ve been in this since March, it’s no wallstreetbets. I do wish I was more diversified but it’s hard to be certain about 10 stocks with high growth potential, I am certain about CDEV. Prior to March I was invested in SOX, VT, VOO and VGT and I will probably diversify into these once I reach my goal. The idea is to invest benefits to get some passive income coming in, where I can work less at my day job and work more doing what I really love.

1 Like
By reading and partipating to this forum, you confirm you have read and agree with the disclaimer presented on http://www.mustachianpost.com/
En lisant et participant à ce forum, vous confirmez avoir lu et être d'accord avec l'avis de dégagement de responsabilité présenté sur http://www.mustachianpost.com/fr/