Buy and hold certainly paid off. Now, what if you were an indecisive investor? What if you flip-flopped between stocks every year, selling stock A to buy stock B, and vice versa? Because you cashed in your gains each year to buy a different stock, you’ll pay capital-gains every single year. All that taxation adds up so that by the end of 40 years, you’d only have $283,543 post-tax. That’s no small sum, but it’s not the $351,230 you’d have if you weren’t so indecisive.
Frankenstorms, Black Swans, and Other Investing Risks
That’s just one example of the public absorbing a huge portion of the tab and too many corporations shirking costly responsibility. First movers Some companies are already voluntarily making moves in the right direction. Last month, CDP (formerly known as The Carbon Disclosure Project) released a report showing the business strengths and profitable climate change initiatives from incorporation action into businesses. Many investors aren’t yet convinced that eco-friendly attributes are business positives to track, but financial good sense along with good corporate citizenship are increasingly proving out as strong business building. More companies are directing capital expenditures into reducing emissions — $50 billion has been invested on an annual basis. That hasn’t been a mistake. The CDP’s S&P 500 companies that responded reported $4 billion in monetary savings: $1.2 billion in product innovations, $991 million in energy efficiency, and $708 million in retooling transportation fleets and usage. According to this rundown, 20 companies account for 85% ($3.5 billion) in savings reported, as well as 90% of carbon emissions reductions. Not surprisingly, these are major companies: Wal-Mart (NYSE: WMT ) , Ameren (NYSE: AEE ) , Waste Management (NYSE: WM ) , and Exelon (NYSE: EXC ) are on that top 20 list.
Sent! A link has been sent to your friend’s email address. Join the Nation’s Conversation Mike Dillard Elevation Group To find out more about Facebook commenting please read the Conversation Guidelines and FAQs Art, antiques investing is for the long haul Jeff Brown, Special to CNBC.com 11:22 a.m. EDT November 2, 2013 You don’t have to be rich to collect, but you have to have patience and do your research. Money Quick Tips: Why designer goods might just be worth it (Photo: Thinkstock) “There’s a painting for every purse,” says Michael Moses, art collecting expert Moses is co-creator of indexes for collecting modeled after well-known home price indexes Someone with $500,000 portfolio should have less than 20% in art and antiques SHARE 3 CONNECT 12 TWEET COMMENTEMAILMORE Most investments these days exist only as the ones and zeroes of computer code. You can’t get a bond or old-fashioned stock certificate in paper form even if you want one. But art and antiquesnow there are two tangible, physical investments that also can grace your home. And if you have a good eye and a long enough holding period, you might actually make some real money.