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davenbuster

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One tax advantage to approximating an index with individual stock positions is "tax loss harvesting": sell one stock at a loss and buy an equivalent. e.g., sell Coke and buy Pepsi. An advisor told me that you can add ~1% to your after tax returns. You need sufficiently large positions such that rebalancing transaction fees are negligible.

(full disclosure: I'm a Yale EE grad working as a software engineer for the last 17 years in the valley).

The school has had an ambivalent relationship with applied sciences through its history. They considered closing the engineering departments in the early 90's when I was a student. I am glad to see the school investing in this area, even if it less out of intrinsic interest and more out of market demand and perceiving it as a growth area.