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, 07:38 AM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,017
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, 09:22 PM
WesleySnips WesleySnips is offline
Senior Member
 
Join Date: May 2014
Posts: 103
Rep Power: 1
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, 02:44 PM
Steve's Avatar
Steve Steve is online now
Administrator
 
Join Date: May 2003
Posts: 37,017
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 11:24 PM
Good Idea to Price by Neighborhood? thealexsmith General Business Discussions 6 02-22-2011 04:01 PM
What is a good price on christmas light installing? justin.r.wade General Talk 5 11-25-2008 06:33 PM
What is the fair price for this job? Jimmypop Online Lawn Care Estimator - Help me bid this job 1 06-06-2008 02:55 AM

» Recent Threads
  RatingTitle, Username, & Date Last Post Replies Views
Ground Guys
Pattersonllc
03-04-2015 07:49 PM
Today 02:35 AM
by Pattersonllc
5 108
How do you ask tie your...
CurbAppeal1
Today 02:16 AM
Today 02:26 AM
by CurbAppeal1
1 11
Starting a legit...
Hard-Body lawn & garden
03-04-2015 08:19 PM
Today 12:25 AM
by CurbAppeal1
8 140
Front page google...
CurbAppeal1
03-04-2015 06:04 PM
Today 12:20 AM
by CurbAppeal1
6 90
Distant measuring wheel
CurbAppeal1
Yesterday 01:34 PM
Today 12:17 AM
by CurbAppeal1
4 52
Crunch time 2015!
Chilehead
01-29-2015 08:57 PM
Yesterday 07:11 PM
by Chilehead
9 872
Small dovetail truck...
ExtremeLawncareServices
03-04-2015 07:47 PM
Yesterday 07:10 PM
by ExtremeLawncareServices
3 79
Finally!
SGL1
02-22-2015 09:46 PM
Yesterday 07:07 PM
by SGL1
22 625
Opinions on truck wrap
Trupro
02-28-2015 04:21 PM
Yesterday 03:47 PM
by Trupro
20 426
Employee Training...
Trupro
Yesterday 10:46 AM
Yesterday 03:41 PM
by Trupro
2 39
How do YOU charge your...
Hard-Body lawn & garden
03-02-2015 09:28 PM
Yesterday 03:33 PM
by Steve
4 146
Doug With Blades Of...
BladesofSteel
03-03-2015 08:40 PM
Yesterday 02:38 PM
by Steve
3 80
Am I growing too fast?
Mattcrump
08-04-2011 11:54 PM
Yesterday 01:57 PM
by jhinton
12 5,293
Looking for royalty free...
Trupro
Yesterday 10:50 AM
Yesterday 01:48 PM
by Trupro
3 54
New Website
brian'slawncare
03-01-2015 06:35 PM
Yesterday 10:48 AM
by Trupro
9 205
Beginner Mistakes:...
Steve
01-31-2007 12:45 PM
03-04-2015 07:33 PM
by CurbAppeal1
25 7,789
taking first steps...
sizemorelawncare
11-10-2014 08:24 PM
03-04-2015 06:47 PM
by BladesofSteel
14 2,023
hoa bid
Bradcook21
03-04-2015 07:12 AM
03-04-2015 04:49 PM
by Steve
2 98
Incentives for potential...
rmccutchan
02-02-2015 12:09 AM
03-04-2015 04:06 PM
by Steve
13 914
Kawasaki Control Assembly
rsanchez1203
03-03-2015 04:21 PM
03-04-2015 04:04 PM
by Steve
10 183
All NEW BRASS Black Rain...
BlackRain75
03-03-2015 10:07 PM
03-04-2015 02:33 PM
by Sprinkler Buddy
1 65
Moss in grass in the...
tk4454
05-17-2013 12:19 AM
03-04-2015 09:08 AM
by Moki
4 1,618
Jesse with Curb Appeal...
CurbAppeal1
03-03-2015 01:44 PM
03-03-2015 06:48 PM
by CurbAppeal1
12 165
New guy from Columbia, SC
holymoly
03-03-2015 05:27 PM
03-03-2015 06:10 PM
by Steve
1 59
Diesel conversion?
Just for Cuts
03-02-2015 10:59 AM
03-03-2015 06:08 PM
by Just for Cuts
4 129
stubbon people
Bradcook21
02-16-2015 04:25 PM
03-03-2015 05:56 PM
by Steve
45 1,563
What's include in a bid?
ppl
03-02-2015 01:19 PM
03-03-2015 05:53 PM
by Steve
9 232
New Lawn Care Business
S&Z Lawncare
03-02-2015 04:13 PM
03-03-2015 05:39 PM
by Steve
3 138
My Newborn son
avetslawncare
02-27-2015 01:07 PM
03-03-2015 05:23 PM
by joshlawncare
7 188
New parking area
ExtremeLawncareServices
11-07-2014 09:47 PM
03-03-2015 02:50 PM
by ExtremeLawncareServices
14 2,066
rock salt
Bradcook21
02-24-2015 11:17 AM
03-03-2015 01:26 PM
by jrs.landscaping
30 701
tips on creating a...
BLAZIER-1991
01-08-2015 07:22 PM
03-03-2015 10:38 AM
by brian'slawncare
9 836
pros and cons on...
Wolf4dk
03-02-2015 12:26 AM
03-02-2015 10:14 PM
by ExtremeLawncareServices
6 164
price for snow clearing?
Bradcook21
02-25-2015 09:11 PM
03-02-2015 08:32 PM
by Bradcook21
7 315
Ugliest lawn contest
Steve
02-23-2015 04:17 PM
03-02-2015 04:57 PM
by Steve
5 393
Hi from the beautiful...
nwgirl
02-07-2015 06:01 AM
03-02-2015 04:45 PM
by Steve
5 684
Online Estimator
acrajchel
03-01-2015 05:58 PM
03-02-2015 03:50 PM
by Steve
3 151
How to obtain more...
winkie61
02-17-2015 08:31 AM
03-02-2015 11:05 AM
by nwgirl
4 621
I'm Back With The Best...
aduttonater
02-21-2015 01:41 AM
03-02-2015 10:44 AM
by ExtremeLawncareServices
16 709
How to sell annual...
GroPro
02-17-2015 12:31 PM
03-01-2015 01:46 PM
by Chilehead
8 660
Facebook
element009
03-23-2011 09:36 AM
02-27-2015 11:37 AM
by ExtremeLawncareServices
52 11,913
Blade sharpener
Just for Cuts
07-04-2014 01:31 PM
02-26-2015 03:43 PM
by Mr. Mow
15 1,828
viking cyclon.
uppercut
01-29-2015 09:12 PM
02-26-2015 02:54 PM
by Steve
5 571
Start LIKING FACEBOOK...
rlclawncare123
02-26-2015 01:06 AM
02-26-2015 02:41 PM
by Steve
1 175
Another website update
Chilehead
02-26-2015 11:24 AM
02-26-2015 12:46 PM
by Just for Cuts
3 170
New Lawn Care Service...
rlclawncare123
02-26-2015 12:49 AM
02-26-2015 02:24 AM
by ExtremeLawncareServices
1 199
leaf removal.. mulching...
facework84
08-05-2011 03:26 PM
02-25-2015 08:07 PM
by Steve
5 2,859
How many customers?
SC93
02-25-2015 12:40 AM
02-25-2015 04:59 PM
by SC93
5 307
Irrigation...
charlieallen
02-24-2015 01:16 PM
02-25-2015 02:58 PM
by Steve
6 288
use a small business...
BLAZIER-1991
12-25-2014 12:21 AM
02-25-2015 12:46 AM
by SC93
33 2,933
» Popular Tags
4wd apartment complex bark blades blowout bob villa collections commercial demonstration edging employee problems equipment rental facebook ferris first truck flyers free advertising gopherhaul grass growing a lawn care business hardscapes hills hiring husqvarna hydraulic introduction landscape landscape services landscaping training lawn aeration lawn care lawn care business podcast lawn care business seo lawn care business show lawn care business website lawn care business website seo lawn care website marketing more customers business mr dave new business ordinance past due patio install per hour charge podcast profit on employee push versus ride running a business scag v-ride scripts search engine optimization sell the vision seo shreaded small engine repair sq ft square foot sulky tractor auger trailer tree trimmer rack truck new used landscape walk behind web design website winterization won't return wright stander rh
Powered by vBadvanced CMPS v3.1.0

All times are GMT -5. The time now is 03:31 AM.


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

All times are GMT -5. The time now is 03:31 AM.

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