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<blockquote data-quote="WalnutCrest" data-source="post: 1102172" data-attributes="member: 21715"><p>As long as its legal to eat beef, there is a floor set by a base-level of demand. There is no such inherent demand for the equity holdings of any company. Anyone want some Enron wallpaper?</p><p></p><p>Cattle prices will never hit $0.00 / lb. A stock price might.</p><p></p><p>Animal dying in your pasture = bankrupt company in your portfolio</p><p></p><p>Unless you're dealing in uber-high end genetics, none of the cattle you (or I) own are going to do what any high-flying stocks do (i.e., go from $10 to $1000 (split adjusted)). </p><p></p><p>Our cattle are more like a bond portfolio than a stock portfolio, IMO. Actually, they're like a convertible bond with variable rate of annual coupon, where the coupon has a cap and a floor, and the conversion ratios of the bond have variable conversion features (e.g., so that each additional $1 rise in stock price translates to less stock upon conversion than the $1 rise before).</p><p></p><p>Besides, as I reminded a conspiracy-theory-loving friend of mine recently, if worse comes to worse, I can eat my portfolio. How, exactly, does a gold coin taste?</p></blockquote><p></p>
[QUOTE="WalnutCrest, post: 1102172, member: 21715"] As long as its legal to eat beef, there is a floor set by a base-level of demand. There is no such inherent demand for the equity holdings of any company. Anyone want some Enron wallpaper? Cattle prices will never hit $0.00 / lb. A stock price might. Animal dying in your pasture = bankrupt company in your portfolio Unless you're dealing in uber-high end genetics, none of the cattle you (or I) own are going to do what any high-flying stocks do (i.e., go from $10 to $1000 (split adjusted)). Our cattle are more like a bond portfolio than a stock portfolio, IMO. Actually, they're like a convertible bond with variable rate of annual coupon, where the coupon has a cap and a floor, and the conversion ratios of the bond have variable conversion features (e.g., so that each additional $1 rise in stock price translates to less stock upon conversion than the $1 rise before). Besides, as I reminded a conspiracy-theory-loving friend of mine recently, if worse comes to worse, I can eat my portfolio. How, exactly, does a gold coin taste? [/QUOTE]
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