There is write up in SRF thread and I came across this statement. Can anyone ellobrate? If you want to reinvest, it will be always after paying tax correct?
Did a write up on SRF
“Over the long term, it’s hard for a stock to earn a much better return than the business which underlies it earns. If the business earns six percent on capital over forty years and you hold it for that forty years, you’re not going to make much different than a six percent return—even if you originally buy it at a huge discount. Conversely, if a business earns eighteen percent on capital over twenty or thirty years, even if you pay an expensive looking price, you’ll end u…
