Thursday, October 23, 2008
More Stock Purchases
As the market has continued it's slide down to reasonable PE levels or lower price levels to account for diminished earnings expectations, I've been picking up more stocks. The portfolio I have put together would have cost me 4x what it is now about 2 months ago. One thing I am running into is purchasing stoxks right before the quarterly dividend is declared. This is a "bad thing" to some people. It's because it creates unnecessary tax payments. Here's my response: it's tax payments on money I did not have 2 weeks ago. I do not like doing it, but hey, it's the nature of buying now while the crash is going on compared to waiting. I love that rationale "you're paying a tax". Like paying a tax on money I did not have previously is a harm. What's my dividend going to be anyway $30, and I'll owe like $4.5 in taxes. Oh shit, better start worrying about that lost trip to Wendy's.