Cash or Stock?

Cash or Stock is the real money question. And it needs to be thought about carefully. I would rather take stock than pure cash. Why? Simple, you need to invest the money and during the time you are looking for an investment to invest in you will have two big enemies: Taxes and inflation. Take the stock and you will gain a lot.

But, be carefull with taking stock as payment. If the company has bad financials or the company is utterly corrupt with it's financial reports then you will be in a world of shit.

Before accepting stock, do your financial due diligence of the company with the help of your CPA: If everthing shows green lights, then take the stock by all means. Especially if you can gain more by taking the stock than taking the cash. And most of the time you do make more from a stock payment than from a cash payment. Not just because you don't need to pay taxes right now or that you don't need to worry to much about inflation (because hopefully the company will make enough money to cover the loss in purchasing power), but because you will be able to sell your share of the stock payment for at least 5-10 times earnings.

And don't tell me that this is not possible. The right view on it would be that you are a lousy dealmaker. But hopefully you will join my subscribers list and learn the tricks of the trade to get at least 5-10 times earnings in the stock you have accepted.