Selling a stock at a gain may be cause for celebration. But depending on my income level in a certain year and the type of account in which I held the investment, I may owe as little as 0% or as much as 20% of my profit in federal income taxes.
In general, I should focus on finding the best stocks for my portfolio and ignore the tax consequences of buying, selling, and holding investments until its time to file my taxes.
But taxes, like investment fees, can erode my investment growth and detract from my net worth. So I should consider what sorts of taxes apply to my investments (if any) so I can devise and implement a tax-efficient investment strategy.