Core Insights - Nvidia Corporation (NVDA) is positioned more favorably for future growth compared to its competitors, as indicated by its recent fiscal Q2 '26 and Q3 '26 performance [1] Group 1: Business Performance - The article references a long-term investment philosophy emphasizing that a stock's return is closely tied to the underlying business's performance over time [1] - A business that earns 6% on capital over 40 years will yield similar returns for investors, while a business earning 18% over 20-30 years can provide substantial returns even at a higher purchase price [1] Group 2: Tax Implications - The impact of taxes on investment returns is highlighted, showing that a one-time tax at the end of a long investment period can significantly enhance returns compared to annual taxation [1] - An investment compounding at 15% per annum with a 35% tax at the end results in a 13.3% return, while annual taxation reduces the effective return to 9.75% [1]

Core Insights - The long-term returns of a stock are closely tied to the underlying business's performance, with a business earning 6% on capital over 40 years yielding similar returns for investors, regardless of initial purchase price [1] - A business that earns 18% on capital over 20 to 30 years can still provide favorable returns even if purchased at a high price [1] - The impact of taxes on investment returns is significant, with a 35% tax on a 15% annual return reducing the effective return to 9.75% if taxes are paid annually, compared to a 13.3% return if taxes are paid only at the end of the investment period [1] Tax Implications - The difference in effective returns due to tax treatment can be over 3.5%, which has a substantial effect on long-term investment outcomes [1] - Holding investments in great companies for extended periods can provide a significant advantage due to the way income taxes are structured [1]

Core Insights - The long-term return of a stock is closely tied to the underlying business's performance, with a business earning 6% on capital over 40 years yielding similar returns for investors, regardless of initial purchase price [1] - A business that earns 18% on capital over 20 to 30 years can still provide good returns even if purchased at a high price [1] - The impact of taxes on investment returns is significant, with a 35% tax on a 15% annual return reducing the effective return to 9.75% if taxes are paid annually, compared to a 13.3% return if taxes are paid only at the end of the investment period [1] Tax Implications - The difference in tax treatment can lead to a substantial impact on long-term investment returns, highlighting the importance of tax strategies in investment planning [1] - Holding investments in great companies for extended periods can provide a significant advantage due to the way income taxes are structured [1]