Knowledge Marketplace
My First Million

My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

Back to Beliefs

Tax optimization provides more reliable alpha than investment selection

Evidence

Taxes are guaranteed cost while investment alpha is uncertain. Tax strategies can provide 1-3% annual equivalent returns with certainty.

Implication

Focus optimization efforts on tax reduction rather than trying to beat market returns

Counter Belief

Investment skill can generate alpha that far exceeds tax savings, making tax optimization secondary priority

Example Application

Use direct indexing to harvest tax losses while matching market performance rather than trying to pick winning stocks