Blood supply shortage in the US, page-55

" Just to play devil's advocate though, wouldn't this...
"But where he is right is that it is hard to envisage how an investment made in CSL today delivers good investment returns going forward given the starting valuation multiples of the stock." ...be a good reason to sell the stock? Why would you not do that then? Tax considerations?"

Yes, spot on.

Tax considerations presents a significant disincentive for me to sell my CSL shares, given they were first acquired a long time ago.

Of course, if one is a CSL shareholder from a long time back and is able to now find other investments that are sufficiently attractive - so that the assessed investment returns on offer from those other investments would more than compensate for the capital leakage to tax - then one should sell CSL and purchase make those other investments.

For the preceding 12 to 18 months, there have been very few sufficiently undervalued investment opportunities that would justify selling CSL and, in the process, crystalising the tax liability.

But, self-evidently, that has all changed in the past few weeks following the market's spectacular fall, so I am now using CSL as one of my funding sources, selling the stock on the back foot to invest elsewhere, especially in some of the capital raisings that are occurring by even some high-quality companies, and which I expect will continue in coming months.

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