As the world entered a new year, Congress danced on the side of the fiscal cliff as US lawmakers finally voted on tax rate decisions at the eleventh hour. NYU Stern Professor Aswath Damodaran was quoted in the Business Insider for his analysis of how the fiscal cliff will affect capital gains taxes. Damodaran’s blog, Musings on Markets offers three propositions about taxes:
- The objective in investing is not to minimize taxes paid but to maximize after-tax returns.
- Look for value first, think about taxes afterwards.
- Having a long time horizon is the best protection against taxes
Read more of Professor Damodaran’s thoughts here.