Last week I read an article in The Economist that caught my attention. Given the known issue with inflation in Zimbabwe, a businessman there has created a company that allows investing in cows in order to get a pension in the future.
I found it relevant because, if in anything Zimbabwe is among the top, is in inflation. So they must know a little bit about this current environment that we are living.
The most relevant characteristic of this initiative is that at the time of getting the investment back, investors can choose whether to get their assigned amount in cash or in cows. In the end, investing in cows is not different than investing in other real assets. In western markets, we can similarly buy stocks of public companies which raise livestock and it wouldn’t be so different. But being able to cash them in cows makes this investment independent of short-term fluctuations in the market (in this case in the cows’ prices).
In any case, what really reaffirms to me is that the best way to hedge our savings against inflation is to invest in real assets. Assets that produce some benefit and are revaluated on time, especially if inflation is high.