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re: What percent hold past massive gains

Posted on 2/11/25 at 7:02 am to
Posted by slackster
Houston
Member since Mar 2009
91386 posts
Posted on 2/11/25 at 7:02 am to
I have a client who turned a 4 figure original investment into a low 7 figure position in Apple. He never sold, but also never bought more. He just built up positions around it. It’s still rough 20% of his net worth, but that’s not absurdly far off of the size of Apple in the S&P500 (approximately 8%?).

It’s all very impressive IMO.
Posted by DaBeerz
Member since Sep 2004
18305 posts
Posted on 2/11/25 at 8:20 am to
I’ve done 4 to 6 figures in Netflix and never sold yet
Posted by Upperdecker
St. George, LA
Member since Nov 2014
32806 posts
Posted on 2/11/25 at 8:26 am to
Take back your original investment at some point and let the profits run
Posted by spaceranger
Member since Jan 2017
1627 posts
Posted on 2/11/25 at 9:40 am to
Looked into it a little further and turns out Long Term Capital Gains tax is 0% if your taxable income is less than $47k if you file taxes as single and $94k if you file as married and joint.

Seems like if you retire/dont work/have work defer your salary, you can sell those stocks with profit up to those limits and pay $0 in taxes. Would have to be mindful of dividends/interest and any other taxable income you have, but that seems like a viable workaround.
Posted by Lakeboy7
New Orleans
Member since Jul 2011
28324 posts
Posted on 2/11/25 at 11:40 am to
quote:

It takes a certain mindset to hold ridiculous gains. Not gonna lie it really fricks with you and you kind of have to become dead inside to it to really do it right. Especially when you round trip those gains .


I like looking at them.

To the OP if you are making "life changing gains" in the stock market you dont have a good job.
Posted by bayoubengals88
LA
Member since Sep 2007
23521 posts
Posted on 2/11/25 at 12:23 pm to
quote:

To the OP if you are making "life changing gains" in the stock market you dont have a good job.

This is sadly true
Posted by makersmark1
earth
Member since Oct 2011
20508 posts
Posted on 2/11/25 at 1:44 pm to
quote:

single and $94k if you file as married and joint. Seems like if you retire/dont work/have work defer your salary, you can sell those stocks with profit up to those limits and pay $0 in taxes. Would have to be mindful of dividends/interest and any other taxable income you have, but that seems like a viable workaround.



I guess my mom might could do this, but 47k is pretty low. She might not qualify for zero depending on what counts as income.

I assume pensions, social security, dividends, interest, and RMDs count.

Hard to stay under 47k cap.
Posted by Kingpenm3
Xanadu
Member since Aug 2011
9797 posts
Posted on 2/11/25 at 1:58 pm to
quote:

Talking with a doc at work the other day about what a $5k investment in AAPL in the 1980’s would be worth now. Someone asked yeah but who wouldve had the resolve to hold once they had 50k or a 100k profit, a million, 5 milliion. I wonder what percent of shareholders who get in early can afford the gamble to stay in forever as opposed to capturing life changing profits after a few years.



This makes me think about that NVDA story about how most everyone that works there is a paper millionaire because of the shares they own in the company. I would think that many stories of people holding on to shares for the long run would include employees of the company.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
79512 posts
Posted on 2/11/25 at 8:43 pm to
It's always a guess.

I got COTY dirt cheap during the pandemic. I held when it went up. Now it's on the way back down.

Flip side, I cashed in half of my FCX when it went up to $15. This time I should have held.

I held RCL and it's still going up.

Best approach is to sell at a point where you cash in some shares and make the other shares free, if it's a low yield, and if you're going to reinvest the profits. Or if you don't think it's going to perform well long term.
Posted by beaverfever
Arkansas
Member since Jan 2008
35471 posts
Posted on 2/11/25 at 10:03 pm to
quote:

I held RCL and it's still going up.
I got preposterously cheap shares of RCL during Covid. I eventually sold but I always liked the stock. I had it for several years pre-Covid as well.

It was such an obvious play. There was no real default risk. Were their financing partners going to repo billion dollar cruise ships? It was being priced as if that were a real possibility.
This post was edited on 2/11/25 at 10:10 pm
Posted by Woolfpack
Member since Jun 2021
1512 posts
Posted on 2/12/25 at 7:24 am to
As far as bitcoin, we hear of early adapters from early days when BTC was less than $10. It’s easy to do a bit of math and think for $500 bucks you could be a billionaire.

Would have been hard to not sell in those long periods where you were able to cash out and buy a $500,000 house.
Posted by Bestbank Tiger
Premium Member
Member since Jan 2005
79512 posts
Posted on 2/12/25 at 12:33 pm to
quote:

I got preposterously cheap shares of RCL during Covid. I eventually sold but I always liked the stock. I had it for several years pre-Covid as well.

It was such an obvious play. There was no real default risk. Were their financing partners going to repo billion dollar cruise ships? It was being priced as if that were a real possibility.


I got in at $37. Easy call.

People who go on cruises are hardcore fans who would definitely come back after the lockdowns. They had a low enough debt ratio to survive the pandemic. And their expenses were going to drop off bigly. No food, no fuel, no port fees, no labor costs.
Posted by Zilla
Member since Jul 2005
10644 posts
Posted on 2/13/25 at 9:41 am to
quote:


Looked into it a little further and turns out Long Term Capital Gains tax is 0% if your taxable income is less than $47k if you file taxes as single and $94k if you file as married and joint.


Wait, what ? Really ? I've never heard this ?
Posted by Zilla
Member since Jul 2005
10644 posts
Posted on 2/13/25 at 9:43 am to
So I think about this topic a lot when dreaming about my home run investments lol.. I saw a post once that described any early BTC holders, you pretty much have to be a diagnosable SOCIOPATH to still be holding... It's this reason I often think about how I wish there was brokerages/investment vehicles that LOCK UP the investment, meaning you are not allowed to take it out until a date you specify...I would use that....
Posted by Jake88
Member since Apr 2005
78373 posts
Posted on 2/13/25 at 11:50 am to
I grabbed nvda a few years ago. I'm still holding.

Bought RCL at $21. Still holding.
This post was edited on 2/13/25 at 11:54 am
Posted by spaceranger
Member since Jan 2017
1627 posts
Posted on 2/13/25 at 2:12 pm to
quote:

Wait, what ? Really ? I've never heard this ?


yep!
irs.gov- Capital gains and losses

Posted by KWL85
Member since Mar 2023
3258 posts
Posted on 2/15/25 at 8:53 am to
I don't dream about homerun stock picks. Staying invested over many years is more important than homeruns. I made a lot of money in the russell1000 and the s&p.
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