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COGS isn't being calculated because so much of the business equation is being given to your friend. You couldn't accurately calculate returns without appropriately assigning costs. If you leave out cost your mythical return is invalid
You know on the internet there will always be naysayers, and people who simply like to split hairs and arm chair quarterback yet while these individuals are busy nay-saying there are actually people out there doing what is claimed to be impossible or at least coming close.
FWIW have you ever invested $10,000.00 Dollars into anything, that in 5 years was producing you $100,000.00 automatically each year? If so then why not share with all of us what it is you're doing instead of trying to bash others who are at least sharing and helping to inform others on ideas or things they are actually doing.
Regarding your argument of him not doubling his money each year, well he runs about a 70% rate of birthing twins with his particular livestock so since you're the math expert tell us what that return is each year.
So I would say he did double his money each year when he was growing. Either way each year he has over $100,000.00 dollars a year thats automatically produced which I would guess is more than you have thats automatically producing in value.
In the case of cost to feed the animals his situation is different as I mentioned his family already own land and infrastructure (in this case 2,000 acres) and they produce enough crops for feed and sell the rest.
Either way my point posting in this thread was simply to say I knew someone who was getting almost a double return on their investment when there were some who said it was not even possible. Point is anything is possible and those who say it can't be done need to get out of the way of those who are doing it.
That poster failed to account for the cost of the land because it was treated as a "sunk" cost. Hence the true ROI is lower. Same with all the expenses of caring for the animals and feeding them.
You know on the internet there will always be naysayers, and people who simply like to split hairs and arm chair quarterback yet while these individuals are busy nay-saying there are actually people out there doing what is claimed to be impossible or at least coming close.
FWIW have you ever invested $10,000.00 Dollars into anything, that in 5 years was producing you $100,000.00 automatically each year? If so then why not share with all of us what it is you're doing instead of trying to bash others who are at least sharing and helping to inform others on ideas or things they are actually doing.
Regarding your argument of him not doubling his money each year, well he runs about a 70% rate of birthing twins with his particular livestock so since you're the math expert tell us what that return is each year.
So I would say he did double his money each year when he was growing. Either way each year he has over $100,000.00 dollars a year thats automatically produced which I would guess is more than you have thats automatically producing in value.
In the case of cost to feed the animals his situation is different as I mentioned his family already own land and infrastructure (in this case 2,000 acres) and they produce enough crops for feed and sell the rest.
Either way my point posting in this thread was simply to say I knew someone who was getting almost a double return on their investment when there were some who said it was not even possible. Point is anything is possible and those who say it can't be done need to get out of the way of those who are doing it.
Sorry, if this friend is not paying rent to the owners then it is STILL subsidized.
Sorry, if this friend is not paying rent to the owners then it is STILL subsidized.
Using his logic, I have a friend who's family owns about 7 car dealerships, when they turn 21 they each get a part ownership in the "Group", so I guess they effectively have infinite returns as all it takes is being born into that family.
i havent read all the details because i think his story is ridiculous from the very first post but who stops at $100k annual return if you can get a 100% annual return?
i havent read all the details because i think his story is ridiculous from the very first post but who stops at $100k annual return if you can get a 100% annual return?
According to Anonymous Lurker, this is the reason why...
"Actually I do but they stop after several years simply because their operation outpaces their infrastructure."
This thread is just ridiculous though... I can't believe somebody thinks that a 100% return is possible within a year, year over year.
According to Anonymous Lurker, this is the reason why...
"Actually I do but they stop after several years simply because their operation outpaces their infrastructure."
This thread is just ridiculous though... I can't believe somebody thinks that a 100% return is possible within a year, year over year.
is the guy so lazy that he cant invest in more infrastructure? (not that i expect you to know the answer to this but this guy should know better than to quote his friend's silly story without realizing that he doesnt know all the details).
is the guy so lazy that he cant invest in more infrastructure? (not that i expect you to know the answer to this but this guy should know better than to quote his friend's silly story without realizing that he doesnt know all the details).
I know, right?! If I could double my money every year (well, make a 60% annualized return per the numbers he gave us earlier, just accepting them at face value and ignoring all the other issues), I'd be borrowing every penny I could from any lender willing to give it to me...heck, I'd be getting cash advances off of credit cards at 20% interest rates if I needed to, and toss all that into an enterprise yielding me 60% returns.
Unless, of course, once you factor in all those other "infrastructure" costs that his friend doesn't have to deal with because the parents are paying them, the effective IRR is maybe a tad bit less than 60%. But yes, this one belongs in a Monty Pythonesque "Ministry of Silly Threads".
is the guy so lazy that he cant invest in more infrastructure? (not that i expect you to know the answer to this but this guy should know better than to quote his friend's silly story without realizing that he doesnt know all the details).
Exactly!
Quote:
Originally Posted by synchronicity
I know, right?! If I could double my money every year (well, make a 60% annualized return per the numbers he gave us earlier, just accepting them at face value and ignoring all the other issues), I'd be borrowing every penny I could from any lender willing to give it to me...heck, I'd be getting cash advances off of credit cards at 20% interest rates if I needed to, and toss all that into an enterprise yielding me 60% returns.
Unless, of course, once you factor in all those other "infrastructure" costs that his friend doesn't have to deal with because the parents are paying them, the effective IRR is maybe a tad bit less than 60%. But yes, this one belongs in a Monty Pythonesque "Ministry of Silly Threads".
I am also willing to bet that if you did double your money every year, you wouldn't need to go find investors. They would be lining up at your doorstep!
Wow here I try to post an informative thread sharing information and even attempt to break things down and answer questions and I still get a shiit storm.
Quote:
Originally Posted by ncole1
That poster failed to account for the cost of the land because it was treated as a "sunk" cost. Hence the true ROI is lower. Same with all the expenses of caring for the animals and feeding them.
7-8 months out of the year the animals are pastured so there are no feed costs per say, Also after harvest time many of the farming fields are open to the animals for pasturing to eat anything left over. The animals help fertilize those fields so using those other peoples land doesn't cost anything either. Even if you had animals you could use these lands too if you simply ask the land owners.
Quote:
Originally Posted by ncole1
Sorry, if this friend is not paying rent to the owners then it is STILL subsidized.
It's not subsidized if the use of the land is free to anyone with animals who gets permission, it would be considered an agreement that was beneficial to both parties but not a subsidy.
Quote:
Originally Posted by CaptainNJ
i havent read all the details because i think his story is ridiculous from the very first post but who stops at $100k annual return if you can get a 100% annual return?
Unless you've owned large herds of animals you probably don't understand there comes a point when each individual finds their own limit and is comfortable with the money they make. That and the fact that with so many animals you do need larger acreage and that too comes into play.
Quote:
Originally Posted by ChiGuy2.5
This thread is just ridiculous though... I can't believe somebody thinks that a 100% return is possible within a year, year over year.
Funny because I cannot believe somebody doesn't think its possible to do just that
Quote:
Originally Posted by CaptainNJ
is the guy so lazy that he cant invest in more infrastructure? (not that i expect you to know the answer to this but this guy should know better than to quote his friend's silly story without realizing that he doesnt know all the details).
As I already mentioned included the amount of land needed to pasture the animals and if you go to invest in more land then you do cut into your profits right?
Quote:
Originally Posted by synchronicity
I know, right?! If I could double my money every year (well, make a 60% annualized return per the numbers he gave us earlier, just accepting them at face value and ignoring all the other issues), I'd be borrowing every penny I could from any lender willing to give it to me...heck, I'd be getting cash advances off of credit cards at 20% interest rates if I needed to, and toss all that into an enterprise yielding me 60% returns.
Well instead of spending your time here doubting and criticizing me and claiming "what you would do" if it were even possible to get a 60% return why don't you approach it differently, ask more questions and learn more details. Then you might just learn something and maybe be in a position to invest in your area with other people on a similar venture. Let me guess, you'd prefer to be a naysayer and fall in the category of one of those pessimistic types. There's an old saying that holds a great deal of truth,
"People who say something cannot be done should get out of the way of those who are doing it"
Quote:
Originally Posted by synchronicity
This one belongs in a Monty Pythonesque "Ministry of Silly Threads".
Yea due to all the people here who are given an opportunity to learn and grow but instead would rather attack, vilify, or dismiss rather than ask, learn, and find out more.
FWIT Today I was there at the ranch and I stand corrected because he currently has 1,600 animals with a value of roughly $240,000.00.. The kicker is that in a years time all these animals will all have offspring and his herd will then be worth $480,000.00 Even if he sells off half the animals he is still owns around $240,000.00 worth of animals
As much as I'd like to post more information, pictures, and detailed break down and share with you all just how he is doing it I think after all the deep seeded negativity and naysayers here I'd better just cut my losses and move on.
Thanks anyway and wish us continued success in our ventures while you guys sit around here telling each other just how unfeasible it really is to accomplish such things.
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