Taxable investors need to review their holdings on a case-by-case basis. For instance, in 2015, with a cost basis of about $1,000 a share, a market price of $225,000 a share, and a combined federal and state tax rate of, say, 30 percent, I would net about $157,800 per share after a sale of my Berkshire Hathaway Class A stock. An index fund purchased with this smaller amount would have to do about 43 percent better than Berkshire in the future for me to catch up. This seems extremely unlikely.
Buy and hold, baby. Diversify with new funds and sit on your hands with old ones.
