What’s the Go with Kidman & Co?

Hi Barefoot,

We've been looking for a small australian based investment to have a dabble and came across the sale of S. Kidman & Co Ltd. Any advice?

Peter

Hi Peter,

I love the idea of owning a part of one of Australia’s most iconic cattle companies.

As a kid from the country, the Kidman empire -- which spans 100,000 square kilometers -- is the equivalent of the Playboy Mansion for me (okay, just with different heifers).

Would I invest my own money in it?

No.

History shows that investing in agriculture businesses are essentially commodity plays with very little pricing power. And, the commodity in question, beef, is at record highs right now. A very good time to be selling Australia’s biggest capital empire.

My view is that there are better quality investment opportunities to be had owning businesses that are operating higher up the economic food chain.

Scott