Lawn Care Business Forum Lawn Care Business Book Lawn Care Business Blog Lawn Care Software
Home Forum Contract & Flyer Templates Blog Software Videos Podcast Calculators / Estimators Store Mower Review Design It Yourself Lawn Business School

Go Back   GopherHaul Landscaping & Lawn Care Business Marketing Forum > Business > Money, Finances, Stocks, Bonds, & Investments.

Money, Finances, Stocks, Bonds, & Investments. A discussion on Money, Finances, Stocks, Bonds, & Investments.

Buy a good company at a fair price and hold it.


Money, Finances, Stocks, Bonds, & Investments.

A discussion on Money, Finances, Stocks, Bonds, & Investments.
Reply
 
Thread Tools Search this Thread
  #1  
Old 03-12-2011, 06:38 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,038
Rep Power: 10
Steve has disabled reputation
Default Buy a good company at a fair price and hold it.

Investor Warren Buffett is a big proponent of buying a good company at a fair price. In fact he is often quoted as saying that he would rather "buy a good company at a fair price, than a fair company at a good price."

The importance of buying a good company at a fair price and holding it is two fold.

First if you hold onto a stock for at least 5 years, Buffett likes to hold onto them for at least 10, you will benefit from the power of compounding. For every year that good company grows by a certain %, it is increasing all previous increased value of growth by that %. And this happens every year as long as the company is growing at a steady %.

So say for instance your good company brought you a 9% rate of return each year. Your initial investment will double in 8 years!

The longer you leave your money in a good investment, the faster it grows!

Secondly, if you hold onto your investment for at least a year before you cash it in, your tax liability on the profits you make, can drop drastically. Capital gains tax on stocks held less than 1 year are equal to your income tax bracket which can be as high as 35%+. While the same tax liability on profits from a stock held over a year's time maxes out at 15%.

The logic behind this is to encourage you to buy and hold your stocks. If you buy and sell stocks in periods of time less than a year, you can really take a financial hit not only on your brokerage fees, to process these stock purchase, but also you will more than likely pay higher taxes on any of your earnings. Furthermore, you will not benefit from the power of compounding.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote

Stop guess-timating. Learn how to estimate and make money! $$$
Mow Time Estimator Lawn Care Price Estimator Mulch and Topsoil Calculator Snow Plow Estimate Calculator


  #2  
Old 07-31-2014, 08:22 PM
WesleySnips WesleySnips is offline
Senior Member
 
Join Date: May 2014
Posts: 102
Rep Power: 3
WesleySnips is on a distinguished road
Default

Lawn care business tipsLawn Care Business Book
Quote:
Originally Posted by Steve View Post
Investor Warren Buffett is a big proponent of buying a good company at a fair price. In fact he is often quoted as saying that he would rather "buy a good company at a fair price, than a fair company at a good price."

The importance of buying a good company at a fair price and holding it is two fold.

First if you hold onto a stock for at least 5 years, Buffett likes to hold onto them for at least 10, you will benefit from the power of compounding. For every year that good company grows by a certain %, it is increasing all previous increased value of growth by that %. And this happens every year as long as the company is growing at a steady %.

So say for instance your good company brought you a 9% rate of return each year. Your initial investment will double in 8 years!

The longer you leave your money in a good investment, the faster it grows!

Secondly, if you hold onto your investment for at least a year before you cash it in, your tax liability on the profits you make, can drop drastically. Capital gains tax on stocks held less than 1 year are equal to your income tax bracket which can be as high as 35%+. While the same tax liability on profits from a stock held over a year's time maxes out at 15%.

The logic behind this is to encourage you to buy and hold your stocks. If you buy and sell stocks in periods of time less than a year, you can really take a financial hit not only on your brokerage fees, to process these stock purchase, but also you will more than likely pay higher taxes on any of your earnings. Furthermore, you will not benefit from the power of compounding.
When looking into investing in a company, it is often said you should read that company's income statement and balance sheet. Where can you get a hold of this and what are you looking for when you read it?
Reply With Quote
  #3  
Old 08-01-2014, 01:44 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 38,038
Rep Power: 10
Steve has disabled reputation
Default

To find a public company's income statement, check this site out.

http://www.sec.gov/edgar/searchedgar/companysearch.html

Do a search for some companies you know of and see what the documents can show you.
__________________
- Subscribe to my Lawn Care Marketing Blog Feed and get daily tips sent to you. Free!
Download your Free trial of Gopher Lawn Care Software.
Reply With Quote
Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Time is the friend of the good company... Steve Money, Finances, Stocks, Bonds, & Investments. 4 03-10-2011 10:24 PM
Good Idea to Price by Neighborhood? thealexsmith General Business Discussions 6 02-22-2011 03:01 PM
What is a good price on christmas light installing? justin.r.wade General Talk 5 11-25-2008 05:33 PM
What is the fair price for this job? Jimmypop Online Lawn Care Estimator - Help me bid this job 1 06-06-2008 01:55 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Start My Own Business?
mowandblow1980
01-12-2016 07:43 PM
Yesterday 12:55 PM
by Steve
19 2,100
fliers
joshp
08-19-2016 03:23 PM
Yesterday 07:16 AM
by Chilehead
6 218
Looking for new host
Just for Cuts
11-26-2015 06:58 AM
08-24-2016 09:05 PM
by Stephen Alberts
10 1,879
Facebook advertising
Just for Cuts
12-13-2015 07:49 AM
08-24-2016 08:59 PM
by Stephen Alberts
14 13,050
Landscaper taking on odd...
WarriorLandscapingCAN
08-07-2016 06:57 PM
08-24-2016 10:27 AM
by Steve
6 432
Breaking into commercial...
SGL1
08-19-2016 07:02 AM
08-24-2016 10:12 AM
by mowandblow1980
7 235
Snow Plow
acrajchel
08-17-2016 10:21 AM
08-22-2016 11:21 AM
by Steve
5 218
Quarter Acre Woodland...
ew411
08-16-2016 06:50 AM
08-18-2016 12:25 PM
by Steve
4 209
Bidding Bushhogging
acrajchel
08-15-2016 11:52 AM
08-17-2016 05:32 PM
by acrajchel
4 205
Hello From the Florida...
KevinShuman
08-15-2016 08:57 PM
08-16-2016 01:52 PM
by SC93
2 196
I'm making stupid money...
WarriorLandscapingCAN
08-07-2016 07:07 PM
08-16-2016 12:42 AM
by SC93
5 488
A quick Intro
BLE
08-14-2016 05:17 PM
08-15-2016 10:54 AM
by acrajchel
2 197
New Customer - Gettting...
acrajchel
08-05-2016 05:00 PM
08-15-2016 10:52 AM
by acrajchel
4 461
helping out a friend set...
Doug D
08-13-2016 11:33 AM
08-15-2016 09:45 AM
by Steve
1 211
Small bed job
Bradcook21
08-09-2016 09:52 PM
08-10-2016 03:51 PM
by Steve
1 331
Hello from NoVa
jtwlawn
08-03-2016 11:20 AM
08-09-2016 10:45 AM
by jtwlawn
4 460
How much to charge for...
jymie
03-31-2013 05:59 PM
08-08-2016 04:33 PM
by Steve
27 6,615
Needing a website built
burtle
06-17-2015 09:02 AM
08-07-2016 10:21 AM
by Just for Cuts
18 19,765
Review of our lawn care...
Lawnline
07-12-2016 06:40 PM
08-07-2016 08:44 AM
by Lawnline
5 1,769
New Site Hows it look
Infinitelawn
03-16-2015 10:32 AM
08-07-2016 08:37 AM
by Lawnline
8 11,241
Hey guys! Greetings from...
thegardener
08-05-2016 05:45 AM
08-05-2016 03:26 PM
by Steve
1 372
First Time Bidding-Need...
capitallawncrew
08-01-2016 08:30 AM
08-03-2016 09:52 AM
by Steve
3 504
Show us your stripes
Just for Cuts
05-21-2015 03:07 PM
08-01-2016 08:28 PM
by ExclusiveLawns
7 3,765
String trim BEFORE mow...
Mr. Mow
04-12-2015 08:13 AM
07-31-2016 10:36 AM
by joshp
13 5,914
Now Hiring Just South of...
Chilehead
07-27-2016 11:38 AM
07-27-2016 11:38 AM
by Chilehead
0 382
» Popular Tags
apartment become an entrepreneur best mower be your own boss bidding break business business education business help business management complex contractor hacks contracts deck lift dethatcher edging entrepreneur entrepreneur education estimate estimates fuel problems fuel pump half moon blade intro introduction jjandm lawncare l.t.rich landscape landscape design landscaping landscaping design company landscaping richmond va landscping lawn lawncare lawnservice lowering grade marketing mulch planting raising grade residential lawn care richmond va richmond virginia lawn care safety scag snowblower snow plowing snow shovel sprayer start a business start a lawn care business start business start up toro timecutter townhome tree tree service video web design websites what to charge work from home z-max z-spray
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 01:00 AM.


(C) 2011 Riggs Publications - Terms of use & Privacy Policy

All times are GMT -5. The time now is 01:00 AM.

(C) 2011 Riggs Publications - Terms of use & Privacy Policy