VAStocker
Well-known member
My topic is compensatory gain and I think I have possibbly gotten a good grasp on it so here goes. I've bought cattle for years that were good solid cattle clean 4 weight M&L 1 and 2 for the average market price they were going for at the time put a couple hundered pounds on them and turned them over always kinda stayed clear of the calf that looked to be high risk cattle that were skin and bones long hair and so on. But what I think I've figured out is the compensatory gain on those cattle that I was buying had already been absorbed by the cow calf producer or the previous owner whitch ever it would be so the calf with the compensatory gain for the stocker cattle producer was the calf that I was avoiding the ugly calf the one that weighed 330 pounds but had the frame of a 400lb calf did not have a lot of exotic in him all he needed was some good pasture, grain and TLC and I would reap the benifits of that compensatory gain that I was missing out on the graded cattle. So am I right in my theroy or am I way off base. I thought of this as the Stock market the higher the risk the greater the return.