2D·

What to consider when selling a Ten excavator?

Hello community,

I am currently considering selling my $NVDA (-6,14%) shares and finally take some profits here. Now I have to ask a stupid question, as you don't regularly have a Ten Bagger in your portfolio.


Is there a special strategy to somehow minimize the heavy tax burden? Sell in several tranches? But I don't see any added value. Or close your eyes, bleed tax and still be happy? The alternative, of course, would be to continue to hold and hope for continued good performance.

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41 Comentários

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I'm no clairvoyant, but aren't we in the middle of an AI boom right now? And Nvidia makes AI chips?
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@Nofan That's the other thought I have. But at +1200% you can get a little jittery for a short time. That's why I mentioned both possibilities in the opening post.
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@Nofan That's exactly how I see it, I won't give up a single piece. Even if there should be a setback. Nvidia is Basic.
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@ElDuderino71 Yes, of course, I can understand you. In the end, it's your decision. Mine would be: Do I need this money? If not, I'll leave it alone, knowing that it could end up being a waste of money. But there is ALWAYS a risk!
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@Nofan nvidia manufactures GPUs first and foremost. And everyone has a payday at some point. That's what it's all about.
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why don't you just take your stake out and let the rest continue to run? or do you urgently need the money?
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@1Chrischi1 No, I don't need the money, so I'm reasonably open as to what I do with the share.
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@ElDuderino71 set stop loss and continue to run.
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@ElDuderino71 How about a new carpet? 😊 Congratulations!
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@ElDuderino71 Take your stake out and let it run for now. You could hedge your profits with a trailing stop loss. You would just have to adjust the stops manually. That's what I've done now.
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I would not and will not sell them under any circumstances. I don't understand why anyone would want to sell Nvidia at the moment! But everyone has to decide for themselves. Good luck.
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Before selling, I would ask myself what you want to do with the profit. Diversify or do you have a specific new investment in mind? I don't think you have many options for minimizing taxes apart from offsetting losses
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Maybe you have a few bodies you can throw out for the loss pot?
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@jkb92 I had already thought about it, but Paypal $PYPL and Mercedes Benz $MBG are not really corpses, although I'm well in the red with both. So - rather no.
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@ElDuderino71 You can still throw them out, fill the loss pot and then collect them again at a low level.
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@ElDuderino71 mercedes would be a corpse for me haha. Whoever is still clamoring about a combustion engine in 2025, even though they have already invested in e-mobility and in a few years no one will want to drive a combustion engine for everyday purposes anyway....
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@jkb92 Mercedes has a pretty good dividend yield, so it's a long way from corpse status 😉, and I believe in the share again in the long term.
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@ElDuderino71 Sell/rebuy invoice content (spread) Transaction costsb against the ~28% tax on the NVIDIA profit.

Nobody knows how deep in the red you are. Say it in absolute numbers. 1000& profit minus 2% spread with corpse sale with minus 1,000€ and repurchase (i.e. -assuming 20€) or 700€ profit + corpse in the custody account. 🙃
I would only sell the profit at most...
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The following should not be sold
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If you are still convinced by the company, then continue to hold it. My largest single position in shares is NVIDIA and I will continue to hold it. In my opinion, there is still room for upside.
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If you have stocks in your portfolio that have made losses, sell them first. Either you will at least be reimbursed for the loss from the loss pool or it will be offset when you sell nvidia. This will dramatically reduce the burden. Otherwise: It is what it is and if you can sleep more peacefully with taking money out of nvidia, then do it.
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Weint in Österreicher..... We in Austria only ever have the loss pot per calendar year. So double fisted here.
@RundesBalli1 is not the only disadvantage of Austria hahaha
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@RundesBalli1 but no FIFO, which in my opinion is a big advantage over Germany.
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@BamBamInvest but? LIFO?
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@BamBamInvest Do you know if Trade Republic knows that? 🤭
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@Joris you always sell at the average value, regardless of when you sell or which part of the tranches you bought first. This is a great way to do DCA and you know immediately what you will get when the tranche progresses, so you can easily reduce positions again. This also leads to display errors in the positions here with Getquin, because Getqin does it according to FIFO.
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@Iwamoto that's why I currently only use flatex, everything works there and there are never any problems 😁 . Trade Republic should have immense problems here and with tax payment.
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@BamBamInvest I also have Flatex and a few Neo brokers. But so far that's never been a disadvantage if the tax thing doesn't work too well 🤪
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@Iwamoto The fees are manageable and I'm happy to pay a little more if it works. Still less than through conventional banks. And I don't usually buy in hamster tranches anyway, so it's manageable 😊
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I think a staggered sales strategy makes the most sense,
depending on how quickly you want to get rid of them.
Personally, however, I would always keep a certain amount just like that :)
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@Simon_325 @ElDuderino71 That's exactly how I see it. Especially now, with this circular economy (Oracle, xAI, AMD, Nvidia), who knows if that won't be the last straw. For example, if you realize 1/3, you have the profits safe (no one has ever become poor from profit-taking) and cash in case a bounce comes, or even the crash predicted by some.
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I'm in the same boat but with an even bigger stucco and I've also considered selling several times. I sold at 1000% back then. Of course I didn't make it before it went to 1236% a short time later and then went down to, I think, just under 800% and now, also after what felt like a very short time, it's back up to almost 1500%.

The bottom line is that NVIDIA is the hottest shit, and not just in one industry but in many.

For my part, I will ride the wave and will certainly do so for another year - at least.
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I once considered transferring such shares to my children and selling them there... and to put the "credit balance" for the current savings plans and part of it into an overnight money ETF for large purchases in the future.with your sums you would already have your driver's license together instead of capital gains tax.
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@Manlerntnieaus You should not do this under any circumstances, as a sale will be counted as a transfer to another tax number. Then you will have paid tax on everything once.
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You can't avoid the tax. It doesn't matter whether you sell in tranches or all at once. As soon as you sell, no matter how much, you pay 25 percent on the profits (plus church tax if applicable). The tax-free amount of 1,000 euros will make little difference. If you sell everything, you will - roughly speaking - pay 10K in taxes.

However, the legitimate question is:

Why sell right now? If you can stay relaxed even in rough waters (see February - April this year), then I would leave it.

Yes, many people are talking about the AI bubble, but most of them are already proving that they have no idea what they are talking about by comparing it to dot.com. I think it will remain jerky, no question, but I don't see a major slump among the big AI players at all. NVIDIA's growth in particular is repeatedly underpinned as solid by exorbitantly great profit figures.

My current plan is: unless there is a fundamental shift, I will remain invested in NVIDIA until 2030. Of course, I'll keep an eye on whether anything needs to be adjusted. But that's the plan for now.
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Selling now? During an AI boom? Not a good idea!
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In 10 years you'll be so sick of it, I'd leave it lying around - or do you really need it now?
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@Depot_7777 No, I don't really need it, so I'm almost inclined to leave it behind. I'm just a little worried about how highly nvidia is now valued, despite all the AI hype. But I still think that holding is probably the better alternative.
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The more important question is:
Do you know what you want to do with the money? Certainly not just leave it lying around, right?

If the answer justifies 10k€ in taxes, then go for it.
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