alt Hacker NewsMaybe someone can enlighten me, but what's the point of "never selling"? Stocks are not a collectible that you can just look at for fun. Their whole point is to sell for profit, at some time. Maybe it's just me but if you "never cash out", that seems a waste of capital. Or perhaps this is a marketing stunt wealthy people sometimes to? Akin to "I live in a small house".
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wealth needs to be kept somewhere. you can either keep it in cash where it inflates away. or in bonds that also inflates away but slower or stocks that is a hedge against inflation.
so the point is protecting your wealth against inflation and continuing the compounding over long stretches of time.
you can liquidate as required or even borrow against it like the very rich do.
If it pays a dividend there is income. Buy and hold is a very common approach to investing. Overtime the cost basis of a good stock will decrease. Some could be sold to invest in other things.
Buy and hold is a hedge against inflation as good if goods increases the the stock reflects the relative expansion of the money supply.
Technically you can borrow money against your share, if you think your share gains will be higher than the interest rate you essentially have free money (although, obviously, not risk free). So that is a use for never selling shares.
Also some shares pay dividends.
Because if you don't sell you don't pay taxes. You can instead borrow against the asset and get a credit for the interest you pay. The joys of being filthy rich.
this is such a funny comment, we are so tech-pilled that we forgot companies traditionally pay dividends and that’s the reason to invest, to share in the profits, not to speculate