Taxes

“What the corporate tax actually works out as is a dilution of the stock equities. It is the equivalent of a payment of a stock dividend which goes to the government instead of to the stockholders.”

“Gambling is a tax on ignorance. People often gamble because they think they can win, they’re lucky, they have hunches, that sort of thing, whereas in fact, they’re going to be remorselessly ground down over time.”

“Through reluctance to sell, more than one investor has avoided the capital gains tax but lost the capital gain itself.”

“It appears that capital gains are one of the few remaining ways in which an enterprising American can build or augment a fortune.”

“The more you trade, the harder it is to add value because you’re absorbing a lot of transaction costs, not to mention taxes.”

“Market inefficiencies, like tax selling and window dressing, also create mindless selling, as can the deletion of a stock from an index. These causes of mispricing are deep-rooted in human behavior and market structure, unlikely to be extinguished anytime soon.”

“Investment decisions should be made on the basis of the most probable compounding of after-tax net worth with minimum risk.”

“More investment sins are probably committed by otherwise quite intelligent people because of “tax considerations” than from any other cause.”

“The arithmetic makes it plain that inflation is a far more devastating tax than anything that has been enacted by our legislatures. The inflation tax has a fantastic ability to simply consume capital.”