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Should I dump my mutual fund to buy Berkshire-Hathaway? |
This is a follow-up to my previous question. I am not impressed with my Income Stock Mutual Fund (USISX) and want to dump it to buy BRK-B. I've done the research and BRK-B has outperformed USISX for years. It looks like a good buy to me, I just want some other opinions. I'm already invested into an S&P 500 fund. I just am not impressed with my Income Stock. check morningstar.com fund screener (free) ..... you can see which funds have a great track record over time ie EKWAX >20%/yr avg over 10yrs! , up 5% this year already when most are negative, or assuming you'll get in on a dip CGMFX, which has an even better long term performance, but down 12% right now.....I don't see anything wrong with letting the Buffet team manage a piece of your portfoloio, just know BKR-B has 10yr avg of 9.8% and down 4% this year.....whatever you do, you need to get out of USISX which is one of the >80% of funds which underperforms the mkt NEW to Investing in Shares If you have less than $500,000 never buy individual securities. It sounds like you have done the research already. Do what you are comfortable. It really is that simple. |
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You paid in just the right amount. Take your wife to Burger King for dinner. ...investors.. ...The profit is taxed, not the gross proceeds. The problem is that, if you don't report the sale, the IRS assumes the cost was $0.00. I assume that you just received a letter from the IRS. ... Only 2 choices? Which index fund? Which equity income funds? It makes a big difference which you might select rather than the category. Let me give you a couple of examples of what I mean. ... its not compulsory ...The status of those funds is that you can only put your income in them and they are liable for income tax if not a separate irrevocable legal entity. ...No you are not wasting your time because you can deduct the cost basis of your mutual fund investment for tax basis. you will be taxed on the amount above your cost basis. ...Depending on the state you live in there are probably whistleblower statutes on the books. There are also federal whistleblower statutes. Best to consult a local lawyer. ... |
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