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Old 05-18-2019, 03:47 AM   #67 (permalink)
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Originally Posted by JSH View Post
This comes down to the idea in the USA that the people that own businesses are more important than those that do the actual work. The belief extends to high earners as well. If you make $500K as a surgeon on a W2 you will pay 37% in Federal income tax. If you make $500K investing in hospital stocks you will pay 20% Federal capital gains tax.
According to Google, Berkshire Hathaway Inc. Class A gained 4.07% in the past year. To make $500,000 with their stock I would need over $12 million invested.

Amazon gained 49.74%, though. Under Armor gained 54.2%, Netflix gained 62.12%, Chipotle gained 64.42%, Advance Auto Parts gained 70.91%, TripAdvisor gained 93.38%, AMD gained 103.45%, and Abiomed gained 119.98%, so if you invested $227,293.39 with them, it would now be worth $500k.

The Vanguard Total Stock Market ETF did about as well as Berkshire Hathaway and Buffet told his heirs to invest his estate in simple index funds like Vanguard because most people cannot beat them:
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