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Tax factor on the cap gain not worth just services to amplify the gain or loss I will eventually attain from the stock, so in a way it increases my risk. If I sold MSFT to diversify,

this would be bad if MSFT increases

this would be bad if MSFT decreases.

It's like buying more on margin, or buying stock options on Microsoft. If I truly believe it has long term likelihood of increase, then why not buy more on margin or options onMS? Because it increases my risk, I say. But so does not selling to to taxes now. I'M JUST QUESTIONING HOW CERTAIN I AM THAT MSFT WILL INCREASE L.T. IF THERE COMES A TIME WHEN I FEEL LIKE MICROSOFT IS NO SURER BET THAN ANYTHING ELSE, THEN I WOULD SELL IT OF COURSE AND DIVERSIFY.

MY POINT IS THAT THE TAX ISSUE IS JUST AN ISSUE OF RISK. IF MS STARTS TO LOOK 40% RISKIER THAN SOMETHING ELSE, IT WOULD MAKE SENSE TO SWITCH INTO THE OTHER, PAYING TAX. BUT MS IS RISKY BUSINESS COMPARATIVELY. WHY AM I SURE ENOUGH THAT I DON'T SELL (AND PAY TAXES), BUT NOT SURE ENOUGH THAT DON'T BUY ON LEVERAGE OR OPTIONS? How do I know that MS is not overpriced now? Because of the crash? But there are lots of other bargains out there too now. MS is widely followed, hence fairly priced, just like other stocks.