Caution When Investing in South African Cows Via LiveStock Wealth
I invested in a South African cow via livestock wealth, a South African crowdfarming company around January 2019.
Their initial shtick was that a lot of South African’s are coming into money, and they want to invest but don’t trust the usual stocks and bonds type of system.
They wanted to invest their money in something they were familiar with growing up.
The CEO created Live Stock Wealth so South Africans could invest in cows in a crowdfarming platform.
It seemed simple enough.
You buy a calf.
When it reaches slaughter weight, they sell it as meat in South African grocery stores and nearby countries and you make money.
You could also buy a pregnant cow and make money when the calf is born, weaned, and sold.
You link your debit card or bank account, they debit your account, and you became the proud owner of a cow or calf.
The average return was 5% every 6 months.
Meaning you were guaranteed a 10% return every year.
Which seems iffy for such consistent good returns.
I mentioned some things to watch out for in the original article.
Like it could end like being a pyramid scheme where new investors’ money is used to pay back older investors when their cows come due because the business owner promised such nice, almost unrealistic, almost unbelievable returns.
Or what if a disease, plight, drought, famine, kill the cows or thieves steal the cows and they can’t be sold?
What will they do then?
So caution if you’re going to invest in South African cows via Livestock Wealth.
Some Reasons Not to Invest in South African Cows Via LiveStock Wealth Just Yet
Here are some reasons.
Their online infrastructure isn’t the best YET.
It has gotten better in the year since I started but it’s nowhere near like trading online in America just yet.
Buying a cow was simple and easy enough in the beginning.
You link your debit card or checking account and they take money out and invest it in your cow.
But when the cow is sold, how do you get your money?
Their website online doesn’t allow you to withdraw your earnings
I couldn’t find a way to pull my money out so I contacted the company via twitter because their email is almost useless.
They weren’t helpful on twitter either.
So I contacted a South African blogger who turned me on to the investment platform and he said just download the app and pull money out there.
I thought, “That was stupid. Why do you make it so hard to pull money out?”
Their app only allows international wire transfer withdrawals
After downloading the app, I was having trouble pulling the money out because they required some international numbers from my bank that I was having trouble getting.
Which was interesting because they were able to debit my debit card, but were not able to return money to me via the same debit card or bank account.
Again, stupid circuitous way of doing business.
The money should be available to be pulled out either through the online platform or through the app.
So word of caution:
You might be able to put money in, but getting money out might be tough.
Their website online doesn’t allow reinvestment
At this point I didn’t want to reinvest in another cow, I just wanted my initial investment and my earnings so I can invest in my Vanguard mutual fund again.
But after running into some roadblocks, I thought, “Okay, what the heck, why not reinvest in another cow.”
The returns I made allowed me to reinvest in one whole cow again, and the online website doesn’t allow you to reinvest, only the app does.
Anyone surprised at this point?
So I tried to reinvest via the app, and I clicked on using my earnings plus initial investment to reinvest.
I thought it was simple enough until we got to the final page and they wanted me to include my SA bank account to debit money from.
Like “beeyatch, I wanted to use my earnings to reinvest, not money from a South African bank account I don’t even have.”
So that’s the kicker:
Their app doesn’t allow for reinvestment either…
So I’m out my initial $807 USD that I invested in the cow, plus the approximate $40 (5%) returns I can’t get out or reinvest with my principle in another cow or withdraw…
But hey, you guys get to learn from my $807 USD life lesson lol.
Hopefully if I give them another year with my money sitting in the account not earning interest, their online infrastructure should get better and their website should finally work properly.
[Update: 12/19/19] They got back to me on twitter and fixed the problem.
So now my money plus the interest is reinvested in another cow…
Let’s hope in the next 6 months they get more of their act together and actually make it easier to pull money out via on desktop and not just on the app.
You don’t get pictures of your individual cows anymore
You used to be able to know the cow you’re buying, but I guess they have gotten so big so fast that they can’t take pictures of the cows and upload them anymore.
Especially if the logistics of taking pictures, uploading them, and taking them off the system once slaughtered gets too hectic.
So if you can get through all the hurdles and hoops, you are now buying cows.
You still get an ID number for the cow you buy, but it could all be fake and made up without the picture of the cow as proof because potential pyramid scheme.
Verdict: Don’t invest in South African cows via livestock wealth just yet
Put your money into Vanguard S&P500 index mutual fund so you don’t have to worry about the hassles of withdrawing money when you need it.
Give them another year to two to hash out some bugs and glitches, and then potentially invest in cows in South Africa as another income stream 🙂
- Livestock Wealth
- Crowdfarming: Diversify Your Passive Income By Buying A Cow!
- Vanguard S&P500 index mutual fund
Update after 1.5 years investing in cows in south africa
Read my latest article: 3 Things I Learned From Investing in Cows In South Africa + 10.2% returns after 1 year