Of course the money he invested was already taxed, when he sells those shares at a profit his original investment isn't taxed again, only the gains less expenses are.
And monies held in holding companies are taxed at corporate rates that is true, the stock/retained earnings~ profits can be trickled out tax free via the use of dividends prior to the sale. A sole shareholder could collect approx. $40,000 a year in dividends out of his company tax free.[assuming only income], he could also have his wife and 5 kids all as shareholders and take $40K a year each and they would pay zero income tax. They call that income sprinkling and when the liberals floated the idea about taxing that there was a real uproar.