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In terms of the Income Tax Act, any share investment which is held for longer than 3 years is taxed only on the basis of capital gains and does not result in the investor being declared a share dealer by SARS. This means that as a private investor you should consider what is going to happen to any share you are interested in over the next 3 years. Buying and selling any investment quickly tends to make your stockbroker rich - not you. We recommend that you always buy high quality blue chip shares when they are cheap with a view to holding them for 3 years or longer.

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