Post #14867 by Mark on the Berkshire Hathaway board

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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)

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With the share price at $485 today, wouldn't it have been better to lighten shares at $530 three months ago and buy them back today for $485? Yes, of course. That's making $45 per share vs $21.

The problem is ...

There's a second problem ... taxes.

If I sold at $530, with my basis at around $30, the capital gain is $500. The capital gains taxes for me would be 23.8%, so I would have to pay 23.8% of $500, or $119 in tax. That leaves me with $411 in cash. If I think $485 is now a good price, I can only buy back less than 85% of the shares I owned previously!

It all depends on how you look at it.

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