Charlie Munger: If the stock you buy has a compound interest return of 15% per year for 30 years, and you pay 35% tax when you sell it all at once at the end, your annual return would still be 13.3%. Conversely, for the same stock, if you sell once a year and pay taxes each time, your annual return would only be 9.75%. This 3.5% difference magnifies over 30 years and is truly eye-opening.
In this regard, Duan Yongping specifically quantified the "eye-opening" statement made by Munger: thirty years later, the former had a return of 42.35 times, while the latter only had 16.3 times, a difference
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