Family’s 401(k) Is Herd Of Alpacas
October 21st, 2008WARNING: This is not a recommendation to buy sell or hold any financial instrument, or alpacas.
Via: KMBC:
With the volatile stock market and shaky economy, the Swikard family said they are glad their 401(k) comes on four legs.
“They’re just gentle, curious, fun-loving animals. (They’re) safe around children,” said Dave Swickard of Lonesome Dove Farm.
If you spend a little time around Swickard’s herd, you’ll understand why he’s sold on alpacas.
“You can see it’s compounding without any more initial investment,” Swickard said.
Swickard started three years ago with four breeding females. The Swickards now have 18 alpacas and two guard llamas.
“Breeding stock is where the profitability in the business is at,” Swickard told KMBC’s Bev Chapman.
Females sell for between $10,000 and $25,000. Stud-quality males have sold for six figures.
“You feel that density; you feel that fineness,” Swickard said, referring to the quality of the animals’ coats.
Swickard’s goal as a breeder is to produce the thickest, softest fiber possible for a yarn that is lightweight, warm as wool, and non-allergenic. He’d also like to invest his money in something relatively safe.
“For about 3 percent of the value, you can insure the animal against theft, mortality or loss when you cannot insure your stocks portfolio from going down,” Swickard said. [This is not accurate. If you’re long something, you can buy put options. If the asset crashes, your puts shoot up in value. -KF]
When Swickard isn’t out tending to his animals, he has another job.
“Mortgages,” Swickard said.
Alpacas are one of the oldest domesticated animals on the planet. Their history dates back to the Incas of the South American Andes.
While the investment is not without risks, it is on the upswing in the United States.
Research Credit: JL
Great investment!
I saw an article re Woody Tasch in Ode magazine over the weekend. I was amazed to see what a Google Search turned up on him.
His latest book looks interesting: “Inquiries into the Nature of Slow Money.”
http://www.amazon.com/Inquiries-into-Nature-Slow-Money/dp/1603580069/ref=sr_1_1?ie=UTF8&s=books&qid=1224560435&sr=1-1
or http://www.chelseagreen.com/bookstore/item/inquiries_into_the_nature_of_slow_money:hardcover
I learned something new and interesting reading this. Alpacas are basically llamas, but they are covered with a woolly fur like sheep. Maybe I’m easily fascinated, but I think it’s freaking cool that there’s such a creature as a “sheep-camel”. And in the coming days, sustainable sources of material that could help people keep warm in colder climates will be a very good thing. Not to mention they make great pets and you don’t have to kill them to derive the benefit they provide! 😀