The set-up is that he will take care of the cows for us, we as the owners will own the cow and the first calf offspring. Tatang will then own the second offspring of the said cow. As for the third and succeeding offsprings, we have yet to discuss since we haven’t reached that point yet.
With this development, soon there will be UITFs that provide passive income via dividends, without the need for Juan to redeem his investment principal. So Juan can just hold on to his principal, enjoy the capital appreciation, while reaping the unit-payment income on the side.
Juan’s PHP1,000 in 2006 should be PHP1,395 in 2014 just to get by, keep up with inflation and retain the same purchasing power for the same level of expenses. With rising needs and standards of living (hence more expenses) and more mouths to feed, keeping up with inflation is not enough. A 40% return in 8 years is then, not enough. Now do your own math.
I don’t want to dash your hopes and enthusiasm but in the spirit of transparency, I want you to know that we are no longer into hog raising after our first try. The reason is that we found the ROI small, as such we are focusing on other investments which can give us a higher ROI.
Whatever course you are in right now, your skills, marketability and time are all investments. As such make sure to hone your skills and talents while still in college, such that when you graduate, you either become an sought-for asset to a company, or a young competent leader of your businesses.
In case you are wondering what a religious / spiritual mentor has to do with the stock market and financial freedom and being truly rich, I enjoin you to listen to his audio book on Secrets of The Truly Rich to personally find out why.
I have yet to go back to the piggery business after the first try as I am still reconsidering my investment options (i.e. looking to diversify but in better yields). But given the previous results, which, admittedly, were less than spectacular, here are some questions I asked myself, which might help you in probing your situation.
Personally, I’m not yet closing my doors to this piggery venture, as long as I / we can correct the previous projections, and improve on the whole process. There were lots of learnings along the way.
Less than 3 months in the venture and we have already invested PHP7K per pig: PHP3.5K for the piglets and PHP3.5K for the feeds (both Starter and Grower feeds). Based on discussions with the caretakers, we are looking at mid-August to see if the pigs are market-ready.
Caveat emptor. Checkout PinoyInvestor if you feel like you need their stock market expertise.