WneverLOSE

Hi, I'm trying to learn a bit about REITs and i'm trying to understand a little about how the taxation works. I got the part about the dividends but not about the "capital gains" from selling the units. Let's say I bought my units at 100$ and during the years got some dividends some were taxed at my marginal tax rate while some were qualified dividends that were taxed at the regular capital gains level and some were non-taxable return of capital. So assume my cost basis dropped to say 70$. When I sell those units at 70$ after those 2 years what tax level will I be charged for the sell of those units ? (assuming they are trading above 70$, otherwise it is capital loss and no taxes should be paid I assume)

I clicked into the post, read a few words and dismissed it as oh another case of smart guys over complicating themselves. Went back to the forum main page and entered another post, thought to myself, maybe I should give it a read and see what that's about and I'm so happy I did it. Absolutely fascinating, thanks for posting.

All I see is excuses. 1) 10 years is a long time to clear out noise and crying about seeing only one poker hand out of many possibilities is such BS. The chance of being with the "winning hand" and still losing after 10 rounds is so remote he should go take a probability course in the nearest high school he can find. 2) Warren bet wasn't strictly about high fees. It was about active management and the implications of it such as extreme diversification, high turnaround and so on. There is a reason why Warren chose the s&p 500, not because it's cool or because that's the only index he knows, because it is the index that represents the american businesses according to their size in the economy. Going on and on about the fact that he would lose by a smaller margin if you compared the funds performance to other business that don't represent the essence of Buffett thinking just shows how bad he didn't understand Buffett reasoning.

Where can I find the episode to watch again ?

EDIT: not relevant any more

Thanks, got it. Are there any reasons you can think off beside those 2 ? I would love to hear if there are any other ones

Hi ben, Thanks for trying to explain to me, I guess I still don't quite understand When i am saying "free" I mean it in the sense that I don't have to pay for it. Cash has no cost to the company, while debt does have ( Let's say that a company ABC takes 100m in a 10% loan and just lets the money sit there for 10 years, the money is gone, total loss. while cash can sit on the balance sheet and 10 years from now it still will be worth 100m 2026 dollars). Now my question is why companies that have 1B in cash on the balance sheet still carry debt of 1B ? Think about it this way : Why would Adam take 100K loan from the bank at 10% interest in order to buy stocks that he think will earn him 12% while he has 200K on his checking account ? With a loan he will only make 2% on his investment while using his own "free" funds he will earn the full 12%.

This may sound kind of dumb, and it is probably is, but I am trying to understand why some companies like Berkshire, Moody's, General Electric and Procter & Gamble borrow money ? they have been in business for decades if not more and they produce huge amounts of cash flows. why do they need to borrow money at X% if they can pay it down and use their own money (which is free) ? I am asking since when trying to discount all future cash flows to equity owners I assume that the company will hold its debt level forever, which seems to be the case in real life, but why is it ?

I would love to buy it but they only ship inside the US...

Hi, I think that since accounting is the language of business, we all can benefit from having a place we can ask questions about it. I hope that most of you will use this thread to ask questions and answer them. In order to keep it organized and searchable, if you ask a new question please start it by writing its number at the beginning, and if you answer, please write the question number at the beginning of your answer. Let me start by asking my first question. #1 When company XYZ balance sheet says it has 100m in long term debt, does that amount takes into consideration the amount that will be paid in interest or is it only the principal that should be paid ?

Hi, are there any advances ? did the interview already took place? and when should we expect the interview to be published ?

As value investors we like to think that markets are inefficient, but occasionally we get proven wrong (such as investments in Overstock and SandRidge Energy), acknowledging our mistake is easy in the rear-view mirror but extremely difficult in real time. What is your process of thinking when an investment quoted price goes against you ? does it affect your confidence in your investment ? and if an investment you made is performing poorly after a significant time frame (5+ years) but you still believe in the original thesis, what would you do ?

Found this great interview with Warren that I have never seen before, I highly encourage you to take a look. One question I have for you, at 41:20 I can't understand buffett's answer to the question if berkshire hathaway stock is cheap, can someone help me ? (Probably because english isn't my native language I can't understand)

Hello, I am looking for companies which the majority ownership is held by the founding family or a business which is still being run by the original founder. I am kind of wary of backtest studies, but nonetheless numerous studies have found that family owned or owner-operator business outperform other business. I try not to think about such complex things but I do like the idea that if something goes wrong, you are not the biggest loser, the owner of the company (family or individual) will lose a lot more than you do, so if they/he didn't sold their share yet, they probably believe it's underpriced or have enough growth ahead to still be worth more in the future. couple of companies I currently invest in which fall under the above classification include : IBKR and MSM. I would greatly appreciate posts including publicly traded companies which fall under the above definition.