Invest in cattle and 'earn between 13% and 15%'. Got R500? No farming required
If the current coronavirus crisis has taught us anything it is to make sure our investments are diversified.Maya Fisher-French, Personal Finance Journalist - Maya on Money
In other words, never have all your eggs in one basket.
“Diversification” usually refers to investing in funds that hold South African and offshore shares, property, bonds, cash or gold.
To achieve proper diversification, many investors may choose to also invest in “non-financial assets” or actual, physical assets.
Popular examples include things such as beehives, blueberries and solar energy through Fedgroup Impact Farming (some people may remember its TV ads featuring a comically self-aware David Hasselhoff).
Another example is investing in cattle through Livestock Wealth or others like it (they also farm macadamia nuts).
One more example is SV Capital which allows South Africans to invest in cattle for as little as R500 a month.
The fund has delivered a return of 15.58% per annum - net of fees - since its start in 2017.
Refilwe Moloto interviewed Fisher-French.
If you’ve ever tried to grow your own vegetable patch, you’ll know it’s probably cheaper to buy your vegetables from Woolworths!Maya Fisher-French, Personal Finance Journalist - Maya on Money
A genius idea… crowdsourcing funds for farming. You don’t have to farm! You just invest… they raise the cattle for you. It’s giving returns of between 13% and 15% per annum! … You actually buy a physical cow… You can buy a pregnant cow… You can start with even just R500 per month…Maya Fisher-French, Personal Finance Journalist - Maya on Money
I love this! They diversify completely and utterly away from the market. It [returns] is not driven by sentiment. It is driven by a real commodity: beef… Prices have come off a bit, but nowhere near other commodities… it dropped by about 2%...Maya Fisher-French, Personal Finance Journalist - Maya on Money
For more detail, listen to the interview in the audio below.
The Money Show’s Bruce Whitfield interviews Basil Sgourdos, CFO at Naspers.Read More
The Money Show’s Bruce Whitfield interviews Leon Lourens, CEO at Pepkor Holdings.Read More
The Money Show’s Bruce Whitfield interviews Dr Richard Friedland, CEO at Netcare.Read More
A listener asks petrolhead Ciro de Siena which small car (e.g. VW Up, Suzuki Celerio, Toyota Aygo) gets his stamp of approval.Read More
Personal finance advisor Warren Ingram on ensuring you don’t run out of money before you run out of life.Read More
Banks are hungry for 1st-time buyers right now and interest rates have never been this low, says property entrepreneur Grant Smee.Read More
The deadline to submit is approaching fast. "Over 70% of taxpayers have already filed their returns," says Marcia Ujobolo of Sars.Read More
In the market for a new car? There are deals galore, says motoring journalist Ciro de Siena.Read More
A R1 million home loan costs about R7800 per month right now. What is your rent? What are the pros and cons of buying?Read More
Even banks and insurers are in on the consumerist orgy, says Certified Financial Planner (CFP) Gerald Mwandiambira.Read More