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Is the money ever really lost?
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<blockquote data-quote="WalnutCrest" data-source="post: 1381897" data-attributes="member: 21715"><p>Agreed, Steve. </p><p></p><p>The ability to keep going is more important than making a profit in any particular period. </p><p></p><p>As it regards my example above, I wasn't necessarily advocating for that particular approach to accounting for farm profits, merely attempting to explain how some people (including the previously mentioned Dr Hazard) might look at things.</p><p></p><p>...he started with a 90,000 initial investment into 100 lighter weight steers...and three years later, he still had 100 lighter weight steers, but also had 60,000 in his pocket (after expenses). Sorta like owning a stock that pays a variable dividend -- because he still owns 100 lighter weight steers (as a result of buying smaller animals at the same time as selling the lather ones), his investment in cattle behaves similarly. </p><p></p><p>He's realizing a cash-on-cash return of 20% / year (on average) and still has his original investment (100 steers) ... which should appreciate over a lifetime in cattle along with a general rate of inflation.</p></blockquote><p></p>
[QUOTE="WalnutCrest, post: 1381897, member: 21715"] Agreed, Steve. The ability to keep going is more important than making a profit in any particular period. As it regards my example above, I wasn't necessarily advocating for that particular approach to accounting for farm profits, merely attempting to explain how some people (including the previously mentioned Dr Hazard) might look at things. ...he started with a 90,000 initial investment into 100 lighter weight steers...and three years later, he still had 100 lighter weight steers, but also had 60,000 in his pocket (after expenses). Sorta like owning a stock that pays a variable dividend -- because he still owns 100 lighter weight steers (as a result of buying smaller animals at the same time as selling the lather ones), his investment in cattle behaves similarly. He's realizing a cash-on-cash return of 20% / year (on average) and still has his original investment (100 steers) ... which should appreciate over a lifetime in cattle along with a general rate of inflation. [/QUOTE]
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