Would I be right in assuming due to CGT, it is better to hold a company that lifts 50% over a 12 month+ period than one company that gain 50% over a 6 month period and do the same thing with another company? Someone point me out if the working out is incorrect pls!
First option would be ($10,000 (Initial investment)x 1.5 (50% profit) = $15,000. Leads to 5k profit and 2.5k worth of taxable profit at ~30% so end up with around $14,250 in total after tax.
Second option would be ($10,000 (Initial investment)x 1.5 (50% profit) = $15,000. Leads to 5k profit and 5k worth of taxable profit at ~30% so end up with around $13,500 in total after tax.
This is just a scenario, not something I have done as this is my first 4 months of investing and therefore very minimal what I have bought/sold. Just thought I would ask some more knowledgeable others, cheers!
RCE Price at posting:
$1.68 Sentiment: Hold Disclosure: Held
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