I wrote a couple of weeks ago about why some basic tax knowledge will not only help you to maximize your tax refund after the fact, but will also serve as good guidance on how one should plan financial activities beforehand. Case on point: my exit strategy on my investment in Apollo Group, Inc. (APOL).
For those of you who don't know, Apollo Group is the operating of University of Phoenix, Inc. (UPX), an accredited university with predominant online presence, and many other educational institutions. I bought 400 shares of its stock at $35.07 apiece on November 20, 2006, following strong recommendation from Morningstar equity research's recommendation. (In retrospect, I bought the stock almost at its 3-year nadir. What a perfect timing!)
Now the stock APOL is trading at over $75 apiece and I'm happily watching my original investment of $14,000 turned out to be another double-bagger. Apparently the stock is no longer cheap at 22 times forward P/E. In fact, in my latest monthly portfolio review, I have listed my target (sale) price of APOL as $65, but I still haven't sold the stock yet. Why?
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