Rufus,
I can agree with what you're saying, though my strategy is somewhat different. If things go as I plan, I'll hold the stock as long as I believe it's potential of increasing substantially each year is good. If it continues to impress me in that way, I'll hold it the remainder of my, and probably my wife's life and pass it on to my kids who'll get it tax free at what it's worth at that time unless they change the tax laws. I'm about to turn 75, so we're probably not talking about that long, a quarter century at most.
If I'm right about the stock, and I have high 6 or 7 figures in equity, I'd have no qualms about purchasing perhaps a new, ideally self driving car in a few year, and doing it on margin, without selling a share. I'm uncertain if margin interest will remain tax deductible, but regardless I'd use it, or perhaps write covered calls to get the cash sufficient to purchase a car without bothering to finance it. Likewise if I wished to travel, etc.
I'm not saying this will be the case, if their is a point where I no longer believe the company will grow at acceptable rates I'd sell some, or all of it, but with tax considerations I'd have to be convinced it's the right thing to do. I would also have no qualms about using margin to buy into other investments, but again, only if my total margin only represented a tiny portion of my total equity. Right now I'm about 50% in cash, so margin isn't even a consideration.
If you're young this may not be a strategy worth considering, but at my age if this and other companies I'm in continue to look positive, I really don't know why I should set a price now, and be out when I reach that price.
Gary
