nfs analyzes VII both before and after taxes

Schroeder's picture

On paper, Valuation Informed Investing (VII) has shown to beat Buy and Hold (B&H). However, in the real world, trading costs and taxes come into play. nfs performed an analysis that shows that after taxes, VII doesn't hold up as well. Here is the analysis.

LINK

Recall that black is B&H and violet is VII. The comparison for the recent 20-year experience between with or without tax treatment is more dramatic. Here's without taxes . . .

And here's with taxes applied . . .