What is Stock Capital Gains?

    Let's say you have a $100 million house and one day it sells for $150 million. So 50 million and he gets a profit of 50 million, which we call a capital gain. For example, if he bought Bank BCA stock for 13,300 shares in 2015, it would be the same as if he sold it for 34,000 today.

What is Stock Capital Gains?

    This represents a capital gain of 20,700 per hand, or an increase of approximately 156% over the original purchase price. In the world of stock investment, his two merits are: Dividends As I explained in the previous article, the second is the price difference and capital gains in buying and selling the stocks you own.

    For capital gains, that's the concept, but there are also terms like moving gains and realized gains. There are also contrasting terms such as variable loss and realized loss. Invested in stocks at the age of 11. Warren Buffett is one of the world's most successful investors of all time. If you're not familiar with it, I'll try to talk a little bit about it in this article. In 1941, when Warren Buffett was 11 years old. He bought his first stock at a price of $38, 1 in 6, and 3 shares. He has three for his sister. Her name is Doris Buffett. By the way, the stock she bought. Her name was Cities Service.

    American oil and gas company founded in 1910, but now defunct. Must be over $38 per hand. It could be 40, it could be 45, 50, 60, etc. Unfortunately, the stock actually fell to about 1/3 of the purchase price just weeks after the purchase.

    Her sister Doris was mad because if the stock price fell by 1/3 of her, her assets would be "decreased". Instead of selling the stock, Warren Buffett, despite being constantly scolded, is convinced that this stock is actually good and will one day be more highly valued in the market.

    It turns out that Cities Service's stock price is back up to $40 per share. Warren Buffett immediately sold the stock. That means he's making $2 per share of his stock. At that time, he was very happy because the first one was not defeated and the second one was not scolded either. However, stock prices found him up to $200 a share in the long run. There are a few things we can learn from Warren Buffett's experience. First, when he bought his original WB stock for $38, the price dropped to his $25. This is called a "pending loss", aka loss, but this loss is not actually real, it is still pending and has not yet materialized.

    It was clear at the time that Warren Buffett would lose $13 per share if he did sell, as WB hadn't sold any shares at the time. So he didn't lose. next, right? In fact he rose to $40 when the stock price returned him to $38. This meant that Warren Buffett was once again facing a "floating profit" position as he bought at $38 a share.

    At the time, his stock was $40 a share. That means a potential profit of $2 per share. Warren if it turns out his Buffett sold the stock for $40 and WB actually sold the stock for $40 a share. This he means a gain of $2 or is also called a capital gain.

    Capital gains, realized profits. Another lesson to be learned is that WB starts investing when she's 11 years old, which is very young. Just because you can't do it doesn't mean you have to go back to 2011, you need to start investing as soon as possible. how old are you now The second one is even crazier, right? I'm only 11 years old, but I analyzed stocks before I bought them. This is in stark contrast to the people around me who first ask the group, "Which stock should I buy?" "Eh, Kimia Falma can still go up, right?" and others. Or did someone say, "Well, let's all buy Garuda stock," or "I'm grateful when the stock goes up, and I'm grateful when it goes down," and bought it? Who told you to buy the stock at the original price when you bought the stock? I'm sure you don't want that!! Hard to get that money. You must be responsible for this money. Should it be clear what you want to buy and why? all right? The third thing we learn from this story, remember? Cities Service's stock price is over $200 per share. It surged from $38 to $25, then to $40 and continued above $200. Warren Buffett himself learned a lot from this experience. Time is an important part of your investment. All of a sudden, oh here I found a stock selling for 38,000.

    If you buy after that, the price will actually go from 38,000 to 100,000 in a short period of time and will never go down again. Let me remind you again...it doesn't happen what happened is stocks will definitely go up and down in the short term but in the long run "time" will make your analysis correct I think you can check whether or not there is also vice versa. Enough with the article. I learned about capital gains and other terms. I also know a little bit about Warren Buffett's early investment experience. If you have any questions or requests for materials, please let us know in the comments section! My message is always

    Don't be afraid to learn stocks from scratch!

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