CLB 0.00% $1.10 candy club holdings limited

Not sure what your tax situation is, but 50% becomes 25%...

  1. 161 Posts.
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    Not sure what your tax situation is, but 50% becomes 25% after-tax if you are in the top bracket and hold less than a year, with the CGT discount.

    The way I look at it is you hold a year and you get another 50% return on your profits...
    ie $50k profit becomes $25k after tax, hold for a year and that's $37.5k... i.e 12.5k more.... $12.5k/$25k=50%... these numbers become huge as profits grow. On the 500% as you suggest it becomes bigger than your initial outlay!

    So two benefits of holding compounders... you are compounding 1) the free loan in the form of tax you put off 2) the discount on CGT you receive at the end. This is why they call them compounders

    Don't get me wrong... 50% in a month is a great return... if you are confident that's what your capital will get next month.

    But realistically 500% in two years (realistic here), in a business you know and understand.... with a CGT discount will likely be one of the best investments in my life and probably exceed returns that anyone else on here has made or has in front of them....
 
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