Overdiversification Question

[UK]

6 hours ago, adventurer said:

also due to tax reasons in my country

Curious, how does it help with taxes?

[adventurer]

43 minutes ago, UK said:

Curious, how does it help with taxes?

Once you sell with a gain you are always subject to roughly 28% taxes. This makes it harder to play the overvalued/undervalued game which narrows the selection of companies. It`s why I limit myself to companies that I intend to hold for decades. Should have used "tax considerations" instead. 

[Milu]

2 minutes ago, adventurer said:

Once you sell with a gain you are always subject to roughly 28% taxes. This makes it harder to play the overvalued/undervalued game which narrows the selection of companies. It`s why I limit myself to companies that I intend to hold for decades. Should have used "tax considerations" instead. 

Same for me. I actually think that having a high cap gains rate has made my investment returns better than if I lived in low tax regime. Any buys I make have to be based on 10+ year holding plan, ideally multi decade and it reduces the tendency to trade in and out of positions for short term gain. 

[whatstheofficerproblem]

8 hours ago, adventurer said:

How long have you been investing like this? I set my max. number of positions at 3. Trying to keep it simple and also due to tax reasons in my country. 

 

As of last year. Just found a company & mgmt I had 100% conviction as I followed the story there for a while. So far I haven't been disappointed.