Forum Archive Index - July 2000

[grant krissansen <gkriss@xtra.co.nz>]

        As an investor over the last few years I have watched the value
of my N.Z. portfolio rise and fall but recently not increase to any
great extent. (currently up 6% over 2 years-dividends not taken into
account) There have been occasions (e.g. tel at $9.50 or airvb at $3.00)
when I have considered selling but did not because of the risk of being
classed as a trader and being liable for tax on the capital gain.
Consequently I have only sold 1 or 2 lots of shares.
        I have now started trading under a separate a/c and expect to
pay tax when profits are realized (or visa versa) and I  have kept my
investment shares separate.
        My question is:
                                Would it be better to have all shares
tradable (whether one does or not) i.e. Being able to sell when a good
capital gain is made and prospects for more is limited, pay the tax, and
reinvest in a share with better growth prospects?

            or,
                                Keep the investment shares separate, pay
no tax, watch them rise and fall and trust that eventually that ones
picks will increase in value long-term?

        I would be interested to hear any opinions.

Grant.


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