Rates are starting to skyrocket already

Exactly right and people have a tendency to forget about the 2015-16 slump we all endured barely making ends meet. This is an opportunity to rebuild ourselves and we are going to take advantage of it.

 

This is kind of off topic here but the local college here in my town will be closing the CDL part down. Last semester they only had 7 students attend the younger guys and gals just don’t care for driving big trucks anymore.

 

Yes they do. I was there for the whole period and got to experience the joy of dispatching hotshots in 2016. That was the most work I've done for the least money in my 30's.

This is a cyclical business. That means when the going is good you need to push as hard as you possibly can because the down market is always coming sooner or later. Expanding when the market is hot will make it very hard to estimate what your situation will look like in a down market, and you'll pay top dollar for every single thing you buy. This is why it's a good idea to pay off debts or pile up reserve cash during good periods and expand during the bad ones. In bad periods hiring drivers and buying equipment is pretty easy, and if you're breaking even in the down market that equipment will mint money when the rates return.

"It is wise to be fearful when others are greedy and greedy when others are fearful." - Warren Buffett

 

Which is why we should be out there harvesting, forgetting about the term "greedy" because if you make in the first half a year...let's say 75% of what was the revenue in the previous years, then it makes you feel complacent, not to say lazy. The down years are the times to relax and take Cancun vacations, while others are scratching their heads and complaining that the rates are low. LOL.

 

Exactly right, make hay while the sun's shining, you never know when the next rain storm will show up!

 

EXACTLY. Being the kind of person who stocks up when stuff is on sale and sells the heck out of stuff when its expensive sounds like common sense, but you have to be doing the opposite of what the crowd is doing... So how common could it be?

 

If rates take a nice dip before tax season I wonder how many will go bankrupt because they spent everything

 

Not 0 that's for sure.