Most people know it’s tough to make money when you purchase things at the top of the market. Cattlemen know this is as true in the cattle business as it is in any other business. Since cattle prices are higher than they have ever been, this is not the time to buy cows.
Please allow me to throw a little reverse thinking at you. All cow-calf producers have a bottom 20 percent in their cowherd. All cow-calf producers have a bottom 30, 40 and 50 percent. All cow-calf producers have cows that should be sold for various reasons.
If you have cows that should be sold and if you choose not to sell those cows, you are in essence buying those subpar cows for ridiculously high prices. Not selling cows at the top of the market is the same as buying cows at the top of the market. Are you guilty of buying cows at the top of the market?
Sell the bottom 20 to 50 percent of your cows – and put that money in the bank. The time will come when you will be able to purchase two cows with the money you received from just one cow. It’s easy to make money on both ends of the cattle cycle if you are paying attention.
WARNING: When you see non-cattlemen like bankers, lawyers and doctors buying cows at the top of the market, it won’t be long before cattle prices crash. At that time, it will be too late to sell your subpar cows for ridiculously high prices.
Quote Worth Re-Quoting
“Be fearful when others are greedy and be greedy when others are fearful.” ~ Warren Buffett