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Re: Time to Buy?

Posted: Sat Dec 24, 2016 5:07 pm
by gcreekrch
We have always made more money on second string cattle and junk than better cattle. The trick is to buy them right and feed them well. Flesh and fat cover a lot of defects.
At any time and at any given sale, there are bargain cattle.

Re: Time to Buy?

Posted: Tue Dec 27, 2016 9:57 pm
by PPRM
mytfarms wrote:Very good to hear a few different viewpoints, as always! I am certainly the cow lover of the two of us, but they do come second to our more important endeavor of staying hitched.

I am waiting to see if we take another little dip during the late winter/early spring. I need to trade out a few old cows with younger, and continue the slow progression I've been making.


There are cows I love... They breed in the first 25 days of the season, have great udders, birth unassisted and start getting junior up almost before he is out all the way, clean him immediately and have him nursing right away and bring him back that fall at about 600 pounds on decent forage... Those are the only cows i love and they Love me back with profit.

Re: Time to Buy?

Posted: Thu Dec 29, 2016 9:27 pm
by mytfarms
I like the idea of cash for everything. To this point in our lives, either through shrewd dealings or grace from generous folks, we have not accrued any debt outside of a dab of educational debt that should easily be paid off next year. That's a whole lot better position to be in than some young people we are acquainted with.

I reckon we will keep cleaning up the financial bottom line and oust the cows that aren't paying their way. Although I have a really nice set of Angus registered cows and bulls, I may open up some "trash trading" on the side to boost the cash flow. Always some sort of unfair advantage a guy could use to help his margin it seems like.

Which brings me to another point. When you have no land and about that much capital, how do you get the ball rolling in the first place? Keep kicking tires and see what opens up to work with you?

Re: Time to Buy?

Posted: Thu Dec 29, 2016 10:41 pm
by Big Muddy rancher
I don't think debt is all bad. If it is working capital and not taken on for toys like boats, ATV's ect that don't work for you. Not saying a good ATV can't be a tool.Sometimes debt provides opportunities.

Re: Time to Buy?

Posted: Fri Dec 30, 2016 12:53 am
by littlejoe
I will rent tools to make money.
I seldom rent toys.
Money is a tool.
Money rent is currently pretty cheap.
I don't like to rent so much that I have trouble paying it back.

Re: Time to Buy?

Posted: Fri Dec 30, 2016 9:40 pm
by Faster horses
If it weren't for debt, we would still be working for wages. It's what DEBT is used for and how it is managed, is the key.

Re: Time to Buy?

Posted: Tue Jan 03, 2017 10:30 am
by Triangle Bar
Faster horses wrote:If it weren't for debt, we would still be working for wages. It's what DEBT is used for and how it is managed, is the key.


Well said.

Re: Time to Buy?

Posted: Tue Jan 03, 2017 2:33 pm
by per
MYT, don't let the fear of debt stifle a dream. Make sure it is a sound dream with a plan and get on with it. I wish I were less conservative in my younger years and a bit more aggressive. Things really started to roll for me when I got on with it and used debt as a tool to get the plan on track. While I am at it, don't wait to have kids until you can afford them. Have them while you are young enough to care for them. We never think we are ready for them and we really aren't so just go ahead and make that happen too. It will also make your Mom happy too. Cheers.

Re: Time to Buy?

Posted: Thu Jul 20, 2017 9:46 pm
by MikeBo
George wrote:I guess I'm the odd duck out - - - other than for a mortgage I don't borrow money - - - I guess that is why every piece of equipment and every vehicle was used except for the 1978 chevy 4X4 I bought new ( still paid cash when I sold a load of hogs ). It served me well to over 500,000 miles but as any tool it passed its us-full life.

Many times I could probably have done good by borrowing but when I was young my father ( he was killed when I was 9 ) drilled into me to pay as you go.

I have many big boy toys but most of them were bought from a junk yard and rebuilt by me. The last decade I am still buying used but buying better than I have in the past.

Is my way the right way? I don't know but I have seen many who have borrowed and looked like the smart guy out there and a few years later they were losing everything.

I have bought my cattle a few at a time - - - took time to build up but no debt. Also I have mostly tillable ground and the cattle are as much a loved hobby as anything so that would make a difference. If I look back over the decades it is amassing to me that I have had the success I enjoy when so many others much smarter than me have failed.


Well you were extremely smart, you kept your debt to asset ratio in line... that was the most important thing in any business...well done