[Corner of Berkshire and Fairfax] Have you considered to show your appreciation as a CoBF member, of your membership, if you actually personally appreciate your board participation and have the means to do so?

[John Hjorth]

About a month ago, or so, I asked the Lady of the House to remind me not to forget one - for me, important thing, up to the coming Christmas.

 

Yesterday, I got that particular verbal reminder from her, not to forget it. [At this time of the year, if it's been a good year so far, I'm usually stressing a lot about taxes for the year, imagine me with spiky hair [the hair, that's left on top, the rest has wandered south bound, subject to gravitation]. This year I got our tax planning fixed in July, so no sweat.

 

So I got it done today. - Then she said : 'Please do same thing for me, on behalf of me, too!'. *Double bubble*!

 

- - - o 0 o - - -

 

If you percieve your CoBF membership like I do : 'The best investment classroom' out there! <on the Internet>, you should perhaps also consider to do, what I [we] did today, at your own personal discretion.

 

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'The Shop' option on the main CoBF page does not - as far as I've experienced today - work for such activity. [It only works for new memberships.] But sending CAD to cornerofberkshireandfairfax <dot> com via Paypal works like a breeze.

 

I would personally guess that what your personal comment on a funds transfer may end up being in the commentary field matter more to Sanjeev than the money transferred by it self.

 

Personally I've made a note of that if CoBF is not in need of cost coverage, Sanjeev is free to personally allocate the funds how he personally prefer [food bank, Crohn Collitis, a gift to a family member, whatever!]

 

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To all my fellow CoBF board members, and especially Sanjeev [ @Parsad ] : Thank you for being you!

[73 Reds]

6 minutes ago, John Hjorth said:

About a month ago, or so, I asked the Lady of the House to remind me not to forget one - for me, important thing, up to the coming Christmas.

 

Yesterday, I got that particular verbal reminder from her, not to forget it. [At this time of the year, if it's been a good year so far, I'm usually stressing a lot about taxes for the year, imagine me with spiky hair [the hair, that's left on top, the rest has wandered south bound, subject to gravitation]. This year I got our tax planning fixed in July, so no sweat.

 

So I got it done today. - Then she said : 'Please do same thing for me, on behalf of me, too!'. *Double bubble*!

 

- - - o 0 o - - -

 

If you percieve your CoBF membership like I do : 'The best investment classroom' out there! <on the Internet>, you should perhaps also consider to do, what I [we] did today, at your own personal discretion.

 

- - - - o 0 o - - -

 

'The Shop' option on the main CoBF page does not - as far as I've experienced today - work for such activity. [It only works for new memberships.] But sending CAD to cornerofberkshireandfairfax <dot> com via Paypal works like a breeze.

 

I would personally guess that what your personal comment on a funds transfer may end up being in the commentary field matter more to Sanjeev than the money transferred by it self.

 

Personally I've made a note of that if CoBF is not in need of cost coverage, Sanjeev is free to personally allocate the funds how he personally prefer [food bank, Crohn Collitis, a gift to a family member, whatever!]

 

- - - o 0 o - - -

 

To all my fellow CoBF board members, and especially Sanjeev [ @Parsad ] : Thank you for being you!

John, that is a nice thought, though if Sanjeev were in need of funds for COBF he'd surely have no trouble raising money from members.    Got me to thinking about something completely different, an investment club (like the group Dealraker speaks about) consisting of COBF members and contributions.  It would be interesting to measure how well such a "fund", as voted upon by members, would do over time.  

[John Hjorth]

10 hours ago, 73 Reds said:

John, that is a nice thought, though if Sanjeev were in need of funds for COBF he'd surely have no trouble raising money from members.    Got me to thinking about something completely different, an investment club (like the group Dealraker speaks about) consisting of COBF members and contributions.  It would be interesting to measure how well such a "fund", as voted upon by members, would do over time.  

 

You might be right, or you may wrong, here, @73 Reds,

 

I personally think the key to understanding here, is actually not about money, but more about tolerance, towards variant perceptions. Please just present your argumentation, by logic, and it'll get a go.

 

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Then there is 'the element of hardship' related to this. You would have to read Sanjeevs [ @Parsad ]s posts for at least the last decade, actually , more than a decade, here on CoBF.

 

It is about that 'nothing comes from nothing, except pocket wool', when 'plus something' is added to that, the piano starts playing.

 

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The concept of an 'investment club' here in Denmark causes an immediate 'brain crash' for me, as a retired Danish CPA, by profession. An 'investment club', can take several forms, based on the will of the founders.

 

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I personally don't invest the same way as Sanjeev [ @Parsad ][It's about differencies in national tax regimes], but I certainly appreciate the ongoing discussions here on CoBF anyway.

 

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This is all about keeping us all connected.

 

-Thank you.

Edited December 15 by John Hjorth
Spelling

[Gregmal]

11 minutes ago, John Hjorth said:

 

You might be right, or you may wrong, here, @73 Reds,

 

I personally think the key to understanding here, is actually not about money, but more about tolerance, towards variant perceptions. Please just present your argumentation, by logic, and it'll get a go.

 

- - - o 0 o - - -

 

Then there is 'the element of hardship' related to this. You would have to read Sanjeevs [ @Parsad ]s posts for at least the last decade, actually , more than a decade, here on CoBF.

 

It is about that 'nothing comes from nothing, except pocket wool', when 'plus something' is added to that, the piano starts playing.

 

- - - o 0 o - - -

 

The concept of an 'investment club' here in Denmark causes an immediate 'brain crash' for me, as a retired Danish CPA, by profession. An 'investment club', can take several forms, based on the will of the founders.

 

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I personally don't invest the same way as Sanjeev [ @Parsad ][It's about differencies in national tax regimes], but I certainly appreciate the ongoing discussions here on CoBF anaway.

 

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This is all about keeping us all connected.

 

-Thank you.

Yea good point. I kinda think the tax aspect is underrated in terms of a point of discussion. 
 

My style, largely manifested from being a technically unsound schmuck with nothing whom tried to fund his IRA like “you’re supposed to” and after a couple years out of college getting disqualified for income purposes just giving up. I couldn’t put a measly $5500, less than 2% of my income, into an IRA…for, I don’t know why, purposes.
 

So I gave up on that $11k in the IRA and just did everything after tax. And as the balances grew, so did the tax burdens. And at that point I had to make choices. Short term investing is so hard on many levels but also mentally taxing bc it’s not a cruise control thing, you have to consistently keep generating new ideas. I’ve shifted now to focus more on quality of life. And I don’t focus on short term trading bs or fluctuations. Quality of life is higher. Compounding is easier although not better, but I would not trade it for the other side of things. 

[Castanza]

44 minutes ago, Gregmal said:

Yea good point. I kinda think the tax aspect is underrated in terms of a point of discussion. 
 

My style, largely manifested from being a technically unsound schmuck with nothing whom tried to fund his IRA like “you’re supposed to” and after a couple years out of college getting disqualified for income purposes just giving up. I couldn’t put a measly $5500, less than 2% of my income, into an IRA…for, I don’t know why, purposes.
 

So I gave up on that $11k in the IRA and just did everything after tax. And as the balances grew, so did the tax burdens. And at that point I had to make choices. Short term investing is so hard on many levels but also mentally taxing bc it’s not a cruise control thing, you have to consistently keep generating new ideas. I’ve shifted now to focus more on quality of life. And I don’t focus on short term trading bs or fluctuations. Quality of life is higher. Compounding is easier although not better, but I would not trade it for the other side of things. 

 

Curious how you ended up in finance/investments? Did you go to school for it and take the trad route?

[Gregmal]

22 minutes ago, Castanza said:

 

Curious how you ended up in finance/investments? Did you go to school for it and take the trad route?

I started off wanting to do law school. The GFC occurred and I thought finance(being totally wrecked post 2008) was more appealing than another 3-4 years of school and tens of thousands in wasted money. I ran into a friend who was doing a job interview for a stockbroker job while at Webster Hall one night. The rest is history.
 

As they all say, I was just “lucky” on the timing….maybe, but everyone who gets somewhere catches a break and then runs with it.

[Castanza]

1 hour ago, Gregmal said:

I started off wanting to do law school. The GFC occurred and I thought finance(being totally wrecked post 2008) was more appealing than another 3-4 years of school and tens of thousands in wasted money. I ran into a friend who was doing a job interview for a stockbroker job while at Webster Hall one night. The rest is history.
 

As they all say, I was just “lucky” on the timing….maybe, but everyone who gets somewhere catches a break and then runs with it.

Good stuff! Hell of a ballsy move at the time.
 

Exactly, behind every lucky break or opportunity is a choice. A lot of people never take that chance. 

[Grenville]

FWIW...Cobf helped me make the career switch along with opening up doors to experiences and people I had no clue about....Thank you Sanjeev for keeping this thing running across it's many iterations and also cultivating a place that has been able to keep its special sauce special for so long. Kudos!

[Parsad]

I appreciate the thought and gesture John, but rather than send me funds, please donate to any non-political, non-profit of your choice in your area.  The site takes care of itself, and like many of you on here, I have been a long-term benefactor.

 

If you want to help the site, mention it to like-minded people so that we continue to spread the gospel of Buffett and teach people to manage their own money.  I wish you all a Merry Christmas and Happy 2025!

 

Cheers and thanks! 

[Milu]

13 hours ago, Gregmal said:

Yea good point. I kinda think the tax aspect is underrated in terms of a point of discussion. 
 

My style, largely manifested from being a technically unsound schmuck with nothing whom tried to fund his IRA like “you’re supposed to” and after a couple years out of college getting disqualified for income purposes just giving up. I couldn’t put a measly $5500, less than 2% of my income, into an IRA…for, I don’t know why, purposes.
 

So I gave up on that $11k in the IRA and just did everything after tax. And as the balances grew, so did the tax burdens. And at that point I had to make choices. Short term investing is so hard on many levels but also mentally taxing bc it’s not a cruise control thing, you have to consistently keep generating new ideas. I’ve shifted now to focus more on quality of life. And I don’t focus on short term trading bs or fluctuations. Quality of life is higher. Compounding is easier although not better, but I would not trade it for the other side of things. 

The country one lives in and it's cap gains rate has a massive influence on the optimal investment approach. I assume that John lives in Denmark which I believe has a 42% cap gains rate (highest in Europe, possibly the world). Ireland where I live is also in the upper end (33%). With that level of tax any kind of short term buy and sell strategy is doomed. Not having many tax sheltered options here in ireland is counterintuitively a potential big benefit in that it forces me to be super strict about any new position I get into as I likely want to hold it for decades to avoid having to sell and pay such a high tax rate. And also during times where you have doubt in a position, but are sitting on substantial unrealised gains it results in you being super cautious before ever deciding to pull the trigger on a sale. I think if I had the ability to get in and out of positions tax free like in those type of accounts some people have it would potentially shorten my time horizons and may even result in me having worse after tax returns than just doing my buy and hold in Ireland and paying the cap gains whenever I do sell a long term holding.

 

It's quite a fascinating topic.

Edited December 15 by Milu

[73 Reds]

13 hours ago, John Hjorth said:

 

You might be right, or you may wrong, here, @73 Reds,

 

I personally think the key to understanding here, is actually not about money, but more about tolerance, towards variant perceptions. Please just present your argumentation, by logic, and it'll get a go.

 

- - - o 0 o - - -

 

Then there is 'the element of hardship' related to this. You would have to read Sanjeevs [ @Parsad ]s posts for at least the last decade, actually , more than a decade, here on CoBF.

 

It is about that 'nothing comes from nothing, except pocket wool', when 'plus something' is added to that, the piano starts playing.

 

- - - o 0 o - - -

 

The concept of an 'investment club' here in Denmark causes an immediate 'brain crash' for me, as a retired Danish CPA, by profession. An 'investment club', can take several forms, based on the will of the founders.

 

- - - o 0 o - - -

 

I personally don't invest the same way as Sanjeev [ @Parsad ][It's about differencies in national tax regimes], but I certainly appreciate the ongoing discussions here on CoBF anyway.

 

- - - o 0 o - - -

 

This is all about keeping us all connected.

 

-Thank you.

That's just it - if you combine successful methodologies of many different types of investors, how well can you do?  Wouldn't be about the money of course, but more about results.  I know. of a few "clubs" that donate all profits to charities as voted upon by members just the same as the investments.  No biggie, just a thought.  

[John Hjorth]

38 minutes ago, 73 Reds said:

That's just it - if you combine successful methodologies of many different types of investors, how well can you do?  Wouldn't be about the money of course, but more about results.  I know. of a few "clubs" that donate all profits to charities as voted upon by members just the same as the investments.  No biggie, just a thought.  

 

Thank you, @73 Reds,

 

Based on your elaboration, it makes a lot of sense, to me, personally. It's somewhat all related to ones personality. Are you a very social creature [one end of a scale], or a lonely rider [the other end of the same scale], or something in between?

 

[John Hjorth]

7 hours ago, Parsad said:

I appreciate the thought and gesture John, but rather than send me funds, please donate to any non-political, non-profit of your choice in your area.  The site takes care of itself, and like many of you on here, I have been a long-term benefactor.

 

If you want to help the site, mention it to like-minded people so that we continue to spread the gospel of Buffett and teach people to manage their own money.  I wish you all a Merry Christmas and Happy 2025!

 

Cheers and thanks! 

 

Sanjeev [ @Parsad ],

 

Thank you, and respectfully and duly noted, going forward.  In fact, you proposals for mentions to spread the gospel has already triggered some ideas at me

[Cod Liver Oil]

Capital gains tax and taxation in general influences my investing behavior significantly.  Druk and other great money runners who handle OPM evolve to be pre-tax investors and remain so even after they retire into a family office. Buffett is unique in that way. Pretax returns are what attracts capital even when you have 28% tax friction plus whatever egregious fees you can extract. Alpha becomes delta quickly. Taxes unintentionally make us better investors by moving us toward the punch card. 

Edited December 15 by Cod Liver Oil

[John Hjorth]

2 hours ago, Milu said:

The country one lives in and it's cap gains rate has a massive influence on the optimal investment approach. I assume that John lives in Denmark which I believe has a 42% cap gains rate (highest in Europe, possibly the world). Ireland where I live is also in the upper end (33%). With that level of tax any kind of short term buy and sell strategy is doomed. Not having many tax sheltered options here in ireland is counterintuitively a potential big benefit in that it forces me to be super strict about any new position I get into as I likely want to hold it for decades to avoid having to sell and pay such a high tax rate. And also during times where you have doubt in a position, but are sitting on substantial unrealised gains it results in you being super cautious before ever deciding to pull the trigger on a sale. I think if I had the ability to get in and out of positions tax free like in those type of accounts some people have it would potentially shorten my time horizons and may even result in me having worse after tax returns than just doing my buy and hold in Ireland and paying the cap gains whenever I do sell a long term holding.

 

It's quite a fascinating topic.

 

58 minutes ago, Cod Liver Oil said:

Capital gains tax and taxation in general influences my investing behavior significantly.  Druk and other great money runners who handle OPM evolve to be pre-tax investors and remain so even after they retire into a family office. Buffett is unique in that way. Pretax returns are what attracts capital even when you have 28% tax friction plus whatever egregious fees you can extract. Alpha becomes delta quickly. 

 

@Milu & @Cod Liver Oil,

 

It's true, and it complicates things related to investing here in Denmark, more or less, a lot 

 

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All realized stock capital gains here in Denmark are taxed at 42 percent, except the first DKK 61 K taxed at 27 percent in a given year.

 

Furthermore, all tax deferred acounts here are subject to a MtM taxation of 15.3 percent on dividends, realized and unrealized gains, with credit for withheld foreign dividend taxes.

 

- - - o 0 o - - -

 

In short, it has become 'just' a life condition, to which our household contribute willingly and gladly. With my personal health issues, without the Danish health care system in place, I would likely personally already have been dead, broke, or both.

 

Thank you.

 

- - - o 0 o - - -

 

Here is a photo of my recent ride, made available to me, for free, by the municipality / City:

 

 

 

 

[73 Reds]

2 hours ago, John Hjorth said:

 

Thank you, @73 Reds,

 

Based on your elaboration, it makes a lot of sense, to me, personally. It's somewhat all related to ones personality. Are you a very social creature [one end of a scale], or a lonely rider [the other end of the same scale], or something in between?

 

John, personality is a funny thing.  More of a control person when it comes to investing, which is why most of my personal holdings are private equity, real estate and debt.  Any public stocks must meet some very strict criteria and like you, only buy for long term results and don't care what happens regarding price next month or next year if the investment thesis holds.

[SharperDingaan]

Every aspiring CPA has to become proficient in their local tax code, and the expectation is 'The CPA Way'; hence the top 1-2 in a tax course is almost always offered an internship in tax at a prominent accounting firm. The other approach is to treat tax as theft, the year-end tax filing as your opportunity to redress the balance, winner takes all, and may the better thief win! Sadly, while this 2nd approach will ALSO get you into the top 1-2 of a tax course, there is no way you're going to offered an internship  

 

'The CPA Way' sells tax as just another cost of doing business; tax avoidance perfectly acceptable, tax evasion ... not so much. However, an enterprising lad quickly recognises ..... that when your tax rate is > 50%; the taxman is now your majority partner!, and the higher the tax rate the better  Take the premium to take stupid risk, spend the money enjoying yourself as much as possible, and when the losses occur - pass the vast bulk of them onto your majority partner 

 

Long a favourite of 'Smiling Jack', who has sadly now passed.

 https://www.cbc.ca/news/canada/oil-pioneer-gallagher-dies-1.165394

 

SD

Edited December 15 by SharperDingaan