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Originally Posted by Sweepsplayer
CCF, I hear what you're saying, but my response to that would be that it still comes down to the numbers -- the question is which numbers.
In your Buffet example, Buffet is considering what the company will be worth in the future considering the quality of management (or other factors). So based on those numbers, he's making an informed financial decision.
Here's another example that I think speaks to your point. Let's say KellyJef's daughter has a mortgage for 6% and a truck loan for 1%. Simply based on those figures, the best financial decision would be to put the windfall towards the mortgage. BUT what if there's another factor at play -- what if when KellyJef's daughter's truck is paid off, she gets so excited about paying off the debt that she puts more toward the mortgage than she would otherwise. Then, yes, that turned out to be a good financial decision. But the numbers changed.
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Good way of rephasing my example!!! I think that MAY be why you see so many of us on this board go with paying off something of that costs us less in interest. We know that it is a snowball effect of paying off debt.
I definitely see your point and it is a good one!!