This is liking watching one of those infomercials at 2am where they want to sell you their program on how to get rich, in your town, flipping houses, with other people's money.
That's what brought down those dumbasses on the TV show Chrisley Knows Best. prison bound.This is liking watching one of those infomercials at 2am where they want to sell you their program on how to get rich, in your town, flipping houses, with other people's money.
Money isn't owned until it's tax free, already taxed. Owned money can be stored in appreciating assets so inflation strategies are the responsibility of the person that owns the money.Wouldn't you have paid tax on that money in the year it was earned? You also "pay" inflation on your money if it's sitting in the bank.
I certainly think there's a time and place for both your money and OPM. The more risk the more i'd want to be using OPM.
Yes! Exactly!I certainly think there's a time and place for both your money and OPM. The more risk the more i'd want to be using OPM.
You are 100% correct. Credit is a tool, and no company has ever reached its potential without it. But nothing is 100% guaranteed to make money. That is why I would never borrow say $100k to buy cattle, or take $100k of my money and buy cattle. But if the potential to make a profit is there, I will allow a company I own to borrow it.Using credit and borrowed money is just a tool. And like any other tool if used incorrectly it will get you into trouble. I would never borrow 100% on cattle. I know people who have done that. And they made good money but eventually it came back to bite them in the rear. If I were borrowing more than I can afford to lose I would darn sure budget in LRP.
That is supposed to say 2 of my companies, not @ of my companies. Damned caps lock on a computer is a diabolical plot by Moslem terrorists, to destroy America. I type with 2 fingers and my eyes on the keys. Nothing in the world worse than getting on a roll, typing something, then look up and see it all in caps These things should be located on back of the computer. This is a new keyboard I just got for this one and just now I took my knife and popped the caps lock button off. If I ever need to type a whole page in all caps. I will just hold down the shift key!You are 100% correct. Credit is a tool, and no company has ever reached its potential without it. But nothing is 100% guaranteed to make money. That is why I would never borrow say $100k to buy cattle, or take $100k of my money and buy cattle. But if the potential to make a profit is there, I will allow a company I own to borrow it.
And it is not like you can form an S corp or LLC today, and that company go get a sigmaure loan or line of credit with no co-signer. @ of my companies are 30 years old, and for years I would have to co-sign for a loan. Ist one I got without having to personally guarantee, was a $50k loan, and I had to put up the title to the company's $50k F350 and $100k LQ trailer. But eventually, the company could borrow money with no co-signer or collateral.
Just be sure they're black. That way you'll "earn" a premium.Well heck ya... if it works for big oil and big tech it's gotta work for cattle.
Where do I get my unsecured loan to buy a billion dollars worth of Brimmers?
I must be missing the point your trying to make. Can you correct the flaws in my thinking? I am on here to discuss and learn. Your post didn't provide any explanation.This makes no sense at all.
Ok, I was misunderstanded the term "owned money". Owned money meaning money that the tax (if applicable) has already been paid.Money isn't owned until it's tax free, already taxed. Owned money can be stored in appreciating assets so inflation strategies are the responsibility of the person that owns the money.
Borrowing money to invest is just piling risk on top of risk. Using your own money all you are risking is the market changes. Borrowed money is always attached to owned assets... which means they are no longer owned.
You are twice as fast as me, I only use one finger.That is supposed to say 2 of my companies, not @ of my companies. Damned caps lock on a computer is a diabolical plot by Moslem terrorists, to destroy America. I type with 2 fingers and my eyes on the keys. Nothing in the world worse than getting on a roll, typing something, then look up and see it all in caps These things should be located on back of the computer. This is a new keyboard I just got for this one and just now I took my knife and popped the caps lock button off. If I ever need to type a whole page in all caps. I will just hold down the shift key!
So correct me if I am wrong. Owned money has already been taxed, that what makes it under your control. Now back to the argument of debt vs owned money. If an operating note is 9% and your tax rate is anywhere from 10-30% depending on how much money you made there is a cost to having both. Big businesses aim for an optimal debt to equity ratio based on the cost of debt, the return on equity they want, and other variables. Should we as cattle owners not find out what our optimal debt to equity ratio is?Money isn't owned until it's tax free, already taxed. Owned money can be stored in appreciating assets so inflation strategies are the responsibility of the person that owns the money.
Borrowing money to invest is just piling risk on top of risk. Using your own money all you are risking is the market changes. Borrowed money is always attached to owned assets... which means they are no longer owned.
Ok, I was misunderstanded the term "owned money". Owned money meaning money that the tax (if applicable) has already been paid.
That's true of course. But there are ways to be sure you can make the payment each time. First off buying right, and not owning 100% of what they may be worth in a down market. Along with tools like LRP insurance. Helps to have a banker that understands the cattle market. One that can give good advice at buying and selling time.The cattle as an investment can very a large amount thru no action on your part. When the mkt is down and the note is due.
Roll high and sleep in the street is what the old-timers said.
That's true of course. But there are ways to be sure you can make the payment each time. First off buying right, and not owning 100% of what they may be worth in a down market. Along with tools like LRP insurance. Helps to have a banker that understands the cattle market. One that can give good advice at buying and selling time.
Well heck ya... if it works for big oil and big tech it's gotta work for cattle.
Where do I get my unsecured loan to buy a billion dollars worth of Brimmers?
I know of a drilling contractor that did that in 1986 when the price of oil suddenly dropped to around $12/bbl and that contractor had borrowed $$ from a Houston bank to operate while taking a percentage of the wells' production as payment. I worked for that company (which had been pokin holes in the ground since before ww2) and we all just about ended up sleepin in the street when the bank called the note.The cattle as an investment can very a large amount thru no action on your part. When the mkt is down and the note is due.
Roll high and sleep in the street is what the old-timers said.