{"id":178383,"date":"2017-06-11T15:00:12","date_gmt":"2017-06-11T13:00:12","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=178383"},"modified":"2017-06-09T17:23:53","modified_gmt":"2017-06-09T15:23:53","slug":"buying-the-cow-global-investors-take-interest-in-south-africas-literal-stock-market","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/178383\/buying-the-cow-global-investors-take-interest-in-south-africas-literal-stock-market\/","title":{"rendered":"Buying the cow: Global investors take interest in South Africa&#8217;s literal stock market"},"content":{"rendered":"<p>Global investors have taken note of a peculiar type of investment which is not at all a foreign concept to many South Africans, but has now become accessible to anyone who prefers livestock to corporate stock.<\/p>\n<p>Recently highlighted by <strong><a href=\"http:\/\/edition.cnn.com\/2017\/05\/01\/africa\/livestock-wealth\/index.html\">CNN<\/a><\/strong>, Livestock Wealth is a &#8220;crowd farming&#8221; initiative that launched in 2015, offering a modern take on a tradition trade &#8211; cattle farming.<\/p>\n<p>The group allows you to invest in pregnant cows &#8211; living breathing cows &#8211; and use her offspring as a type of return or dividend as it is sent off to slaughter.<\/p>\n<p>While unit trusts and shares are often intangible, numbers on a screen in a portfolio somewhere, Livestock Wealth says the cows are real &#8211; the investment is real &#8211; and investors can even go so far as visiting their cow on the farms.<\/p>\n<p>According to the group, a\u00a0typical investor can\u00a0invest in individual cattle or in pregnant cows.<\/p>\n<p>Individually, a six to eight-month old calf, which is sourced from preferred farmers, is\u00a0raised at the farm until it reaches a mature age of 30 \u2013 33 months, after which it\u00a0is slaughtered to produce high value free-range, hormone-free, grass-fed beef.<\/p>\n<p>The meat is sold online, or through bulk wholesale and to niche export markets, and the owner &#8211; or investor if you will &#8211;\u00a0makes a return of between and 10% p.a. and 15% p.a. from the sale of the meat.<\/p>\n<p>With pregnant cattle, the farm takes care of the calf (where it is expected the cow will deliver one calf a year, on average), and once suckled, is sold off to an abattoir. The returns from the sale are given to the investor.<\/p>\n<p>The health and wellbeing of the stock can be tracked via a mobile app.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/0PxRLszNR58\" width=\"640\" height=\"360\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p>&#8220;It&#8217;s a stock exchange environment where the farm is the company, the cows are the stock and the babies are the dividends,&#8221; Nututhuko Shezi, founder and chief executive of Livestock Wealth, told CNN.<\/p>\n<p>At current trading value, an investor can get into the livestock business <strong><a href=\"http:\/\/www.livestockwealth.co.za\/\">from R6,280<\/a><\/strong>.<\/p>\n<p>There is a monthly care fee of approximately R300 per month per cow &#8211; which is where Alpha Wealth makes most of its money.<\/p>\n<p>The risks associated with this type of investment have mainly to do with the health of the stock. Death can occur from natural causes or from other factors &#8211; or your cow can be stolen.\u00a0The monthly fee covers this potential risk, but additional insurance can be taken out, the group said.<\/p>\n<p>According to CNN&#8217;s report, to date, 340 investors own 680 cows across three farms in Kokstad, Vryheid and Senekal, and the group is out of stock with a waiting list of investors.<\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a title=\"Permalink to Cow poo can solve SA\u2019s power crisis: researcher\" href=\"https:\/\/businesstech.co.za\/news\/energy\/110209\/cow-poo-can-solve-sas-power-crisis-researcher\/\" rel=\"bookmark\">Cow poo can solve SA\u2019s power crisis: researcher<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global investors have taken note of a peculiar type of investment which is not at all a foreign concept to many South Africans, but has now become accessible to anyone who prefers livestock to corporate stock.<\/p>\n","protected":false},"author":10,"featured_media":148953,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,11951],"class_list":["post-178383","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-livestock-wealth"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/178383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=178383"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/178383\/revisions"}],"predecessor-version":[{"id":178399,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/178383\/revisions\/178399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/148953"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=178383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=178383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=178383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}