Columbia Basin, Ephrata, WA | outdoorswede - 7/25/2016 21:24
I like your posts Ben...so don't take this the wrong way.
A business in town better have a ROI of 15% or better year in year out. So that million better be putting $150,000 in your pocket every year or you would be better off selling it and going to a passive investment (stock market) and working for someone else.
Yeah, I know. Some of us expect returns from all of our investments, both the farm and the ones in town.
Kind of begs the question, why do farmers accept such low returns? Our "active investments" seem to barely make as much as operating loan rates, and the "passive investments" (land) probably only make about 2%, or a negative return for those farmers that refuse to acknowledge the cost of paid for land.
Those last mentioned guys would be better off to go work for someone else and let their passive investment earn a return.
Also FWIW I think today's very low interest rates are putting downward pressure on the returns of town business ventures.
Edited by Big Ben 7/25/2016 23:37
|