Tuesday, November 14, 2006

Barf Portfolio

It’s tax loss selling season. Here’s my barf, barf portfolio… You can't do better than this!

Ticker% Return
Biogen Idec (BIIB) -13.81%
Boston Scientific (BSX) -44.36%
Microsoft (MSFT) -25.67%
Pfizer (PFE) -7.48%
Sepracor (SEPR)-15.19%

Biogen (Ticker: BIIB) and Pfizer (Ticker: PFE) are keepers for the time being. I see more upside for Microsoft (Ticker: MSFT) with the upcoming release of Vista and Office Suite. That leaves Boston Scientific (Ticker: BSX) and Sepracor (Ticker: SEPR) on the chopping blocks. I piled up some hefty gains this year and need to dump some losers to minimize the tax bill to Uncle Sam. Sooo which one will it be...???


At November 14, 2006, Anonymous Anonymous said...

what the hell?i wouldn't hold anything past a 6% loss.

At November 15, 2006, Blogger HomeImprovementNinja said...

By the way, the IRS has a rule that if you want to sell to claim a loss, you can't buy it back for 30 days, otherwise it doesn't count as a loss. HOWEVER, there are some tax people who claim (and the IRS has never said yes or no to this issue) that you can sell a position in a personal account, claim the loss, and buy it back immediately in your IRA account and it's still good for a loss. I'm not a tax guy, so don't take my word for it, but it's something to consider.

At November 15, 2006, Blogger Money Turtle said...


I admit I let these losses get away from me. I'm considering using a 10% stop loss.

Home Improvement Ninja,

Thanks for the tip about selling and repurchase in an IRA. Something to consider.


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