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$100,000.00 cow
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<blockquote data-quote="lawman" data-source="post: 312065" data-attributes="member: 5425"><p>Why people pay $100,000 or more for cattle.</p><p></p><p>1. If they are buying a bull, they are either looking at a high risk investment opportunity based on possible future semen sales; or they have a large herd (and an established large sale) that lets them make a much safer investment which combines future semen sales possibilities with the opportunity to sell several thousand calves at even a slight premium out of that special bull calf, assuming he fulfills his promise once the numbers from his progeny start coming in. </p><p></p><p>2. Some people buy big money cows because they have an established operation with a successful sale, and therefore they have the strong likelihood of selling their customers enough future calves, pregnancies, flushes, or embyros out of that highly promoted cow to not only get back their investment over time, but also to perhaps even make a profit, as scary as that sounds. </p><p></p><p>3. If you are talking Angus cattle, sometimes the simplest explanation has nothing to do with any real money making plan at all. Sometimes the buyers are part of the 20 or so high end operations in the Angus business who are funded by people who got very rich from other businesses or inheritances, and who basically spend huge money at each other's sales "just because they can". Many times those deals are nothing more than rich folk showing off while they play with their "toy" cattle farm. More often than not, the high dollar buyer is in "the club" so he knows that over the next year or two the seller will return the favor by spending roughly the same amount of money at his sale. These guys don't live in the same world as the rest of us, as they don't seem to have any problem with the huge losses that eventually get realized after a few years of just trading big money at these sales, nor do they seem to care if a few "newbies" get caught up in their game and end up getting hurt pretty badly when they don't end up qualifying to be in "the club" However, I do understand that the sale managers who handle the sales these people put on for each other do pretty well.</p></blockquote><p></p>
[QUOTE="lawman, post: 312065, member: 5425"] Why people pay $100,000 or more for cattle. 1. If they are buying a bull, they are either looking at a high risk investment opportunity based on possible future semen sales; or they have a large herd (and an established large sale) that lets them make a much safer investment which combines future semen sales possibilities with the opportunity to sell several thousand calves at even a slight premium out of that special bull calf, assuming he fulfills his promise once the numbers from his progeny start coming in. 2. Some people buy big money cows because they have an established operation with a successful sale, and therefore they have the strong likelihood of selling their customers enough future calves, pregnancies, flushes, or embyros out of that highly promoted cow to not only get back their investment over time, but also to perhaps even make a profit, as scary as that sounds. 3. If you are talking Angus cattle, sometimes the simplest explanation has nothing to do with any real money making plan at all. Sometimes the buyers are part of the 20 or so high end operations in the Angus business who are funded by people who got very rich from other businesses or inheritances, and who basically spend huge money at each other's sales "just because they can". Many times those deals are nothing more than rich folk showing off while they play with their "toy" cattle farm. More often than not, the high dollar buyer is in "the club" so he knows that over the next year or two the seller will return the favor by spending roughly the same amount of money at his sale. These guys don't live in the same world as the rest of us, as they don't seem to have any problem with the huge losses that eventually get realized after a few years of just trading big money at these sales, nor do they seem to care if a few "newbies" get caught up in their game and end up getting hurt pretty badly when they don't end up qualifying to be in "the club" However, I do understand that the sale managers who handle the sales these people put on for each other do pretty well. [/QUOTE]
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