2Wk·

Beginner's question, share sale

Can I also ask a beginner's question (as a safeguard)?

I bought 14 $PEP (+1.99%) all with a buy in of € 144 some time ago. As you know, the share then fell sharply (currently -20.43%), so it should be quite a long time before I am at least back to zero.

My loss pot is still pretty empty (I ended up here in June with a total of + 1.7%), so is there any point in selling everything now at €115 and then buying in again with the low buy in, would I then regularly top up again?

Thanks and best regards

22 Comments

K@TechNav

2Wk

If you liked the share at € 144, you must be even happier today at € 114, aren't you? Because NOTHING has changed in the company itself in this short time.

Consider the reasons why you are buying at a certain price, also for your future purchases.

Timing the market doesn't work. You might as well try your luck at gambling.

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Wolf@Eurosammler

2Wk

@TechNav So buy more, of course I still like the share.

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K@TechNav

2Wk

@Eurosammler yes 👍 if you like the company's figures, buy the share at a discount

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Bullnbear@Bullnbear

2Wk

My advice: keep Pepsi, the consumer goods stocks are always bad when everything rises & when everything falls, it is precisely these stocks that stabilize the portfolio + actually always pay safe dividends.

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Horrax D@Horrax

2Wk

Regarding your question, sell and then buy again.
This is really only useful if you have already realized profits with shares (only shares) this year.

For example, if you have sold shares with a profit of €2000 (approx. €500 capital gains tax), you will receive a tax credit for the entire realized losses when you sell Pepsi (approx. €30 price loss x 14 shares).

Always bear in mind all the fees that are incurred.

My tax assumptions for your case: Germany, saver's lump sum of €1,000 exhausted, no other special tax features

You can optimize loss pots in this way. If you have several share positions, you can save a lot of tax if you sell some or all of your poorly performing positions.

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Wolf@Eurosammler

2Wk

@Horrax Thanks for your example, now it's clear :-). Yes, the allowance has already been exhausted, there are no fees (Scalable Prime+), the spread is of course due. I can also take the loss into the next year if a realized sale does not cover the loss.
I would buy Pepsi again immediately, but would then be out of the red and would (hopefully) have an additional growth yield in the event of a later sale.

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John@Doe

2Wk

Moin @Eurosammler If you sell everything at 115 now and fill your loss pot, the share will rise to 144 again in 6 months or whenever, you will pay tax on the 29 euros again, or it will be deducted from your loss pot. Do you realize what that does? Nothing... unless you want to fill the loss pot for another share you want to sell, but then the tax on the €29 remains when Pepsi is back at €144. Ergo... if you are still convinced of the company and it still fits into your own strategy, keep the share.

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Wolf@Eurosammler

2Wk

Yes, I'm going to part with another share, so the loss pot would come in very handy.
If I buy Pepsi again straight away, I won't have to pay any tax on the "new" Pepsi share, even if it (hopefully) goes up again, right? Of course, I would like to keep Pepsi as a dividend payer for as long as possible.

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John@Doe

2Wk

But later on you will have to pay even more tax. So if you want to keep them in your portfolio, I would leave them in.

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Wolf@Eurosammler

2Wk

@Doe Thanks for your tip, I'll have to take another look at the process, I guess I didn't understand it properly after all.
(Have mercy on a beginner 🫣)

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John@Doe

2Wk

@Eurosammler Everyone starts at some point 😉 keep reading and informing yourself

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Kate🦋@Iwamoto

2Wk

If you plan to sell something at a profit in the same year, it could pay off. However, if you only consider Pepsi, the new tax burden would also start earlier with the new lower cost price.

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Wolf@Eurosammler

2Wk

Yes, I would like to liquidate a $LU1681043599, I still have a $IE00B3YLTY66 and a $IE00B5BMR087 running.
Proceeds will be around €12,000, I'm still waiting for a market value of around €590 (I'm confident 😂).

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Kate🦋@Iwamoto

2Wk

@Eurosammler I'm not sure whether this applies to Germany or Austria, but in one or both countries, gains and losses from ETFs cannot be offset against those from shares.

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Wolf@Eurosammler

2Wk

@Iwamoto That's right, I hadn't thought of it, thank you! (Germany)

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Sebastian@Baisse-Jumper

2Wk

However, the loss pot is not only valid for one year, but remains in place until it has been fully offset. Otherwise correct: losses from shares can only be offset against gains from shares. ETFs and funds have their own pot. At least that's the rule in Germany.

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Wolf@Eurosammler

2Wk

@Baisse-Jumper Thanks for the information, I had read that somewhere before, but I didn't remember it.
So it's better to reserve the loss pot for the shares that you want to get rid of when you're heavily in the red?

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Sebastian@Baisse-Jumper

2Wk

@Eurosammler Let's put it this way: you can of course play around with the loss pot for shares. If you intend to sell a share at a profit and the FSA has already been used up or is not sufficient, for example, it is practical to be able to make use of the offsetting via the loss pot. I myself have deliberately sold shares in the red in order to increase the loss pot for offsetting future share gains.

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Wolf@Eurosammler

2Wk

@Baisse-Jumper In other words, it is an emergency solution if you have a stock corpse in your portfolio that you can no longer raise or you can use the proceeds for a new investment.

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Schweizer_Investor@Alumdria

2Wk

If the company is well positioned and you are still committed to it, I would buy more. Look at it this way, you get more shares in the company for the same money. If Black Friday or something else is on offer, you can also buy. Why not on the stock market?

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Wolf@Eurosammler

2Wk

@Alumdria I will also buy more and take the opportunity now. I would just like to get out of the red immediately via the loss-making pot so that I can achieve a growth return again, as I will definitely be feeding Pepsi for longer, if possible with dips.

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KoenigsRasse@KoenigsRasse

2Wk

No no noooooooo.... It's better to increase your purchase with 6 more, reduce your equity and look forward to dividends and if you're no longer convinced, just get out at plus 🥸 helloooooooooo this is PePsi 😋

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