if you never sell a share, how do make money I.e realise any...

if you never sell a share, how do make money I.e realise any capital appreciation.?

the same could be said for property no? if someone were to buy a $2m waterfront property in 1995 and today its worth $40m (as an example) that is their store of wealth but they may not be 'making money off it' technically however they are still wealthy. the liquid money is only important if you A) have other plans for it or b) need it live on.

I am not an active trader and am close to the opposite however i would and obviously have sold things if need be but i would try to avoid it at all costs (unless i had a compelling company specific reason).

think of this example you buy 10,000 CSL for $5 a share way back when and one day it becomes $255 as it is today. your sitting on $2.55m. lets say your 60 but dont need the money. (hey you only invested 50k after all and it wasnt your only "retirement plan" . assuming your not a losing investor with CGT losses your staring down the barrel of a $1.25m CGT gain after 50% discount. the bulk of which is taxed at 45% giving over 500k to the tax man. your 2.55m actually becomes $1.8m give or take.

so not only are you now faced with the prospect of potentially finding a home for the $1.8m at what would have to be a more attractive or equal return than you would have got from CSL.. you have just handicapped over 500k off the capital.

in another 5,10,15 20 years that $500k+ could have grown in the market had you not handicapped yourself . this is an extreme example but from that perspective deferring CGT on gains as long as possible can help you to build real wealth faster over time than someone who sells whenever they make a quick profit. (god forbid before the 1 year mark)

secondly and more to the point if you are holding quality stocks for a lifetime would assume in most cases they would be paying you a healthy dividend to live off if needed anyway.