Bamboo and Forestry Investments
With the recent plunge in global stock markets, investors are increasingly looking for safer alternative investments that can still provide a healthy rate of return. Timber investments are an increasingly popular asset class and GreenWorld believes the investment case is compelling well beyond the green investment theme.
It is important to note that as with our agricultural investments and farm land investment, our Forestry Investment options focus on direct ownership of forestry plantations rather than individual timber and forest stocks which we believe are still greatly affected by financial instability. GreenWorld offers Bamboo Investments, Forestry Investments in Europe, and two Asian tropical hardwood timber investments in teak and agarwood.
Forestry investments are a proven alternative Investment which has stood the test of time in terms of both returns and diversification. Forestry investments offer many attractive benefits including risk/return payoff and portfolio diversification. Forestry investments and timber investments have a low correlation to other major asset classes, including stocks and bonds, and are negatively correlated to real estate. Many forestry investments – especially our Bamboo Investments – also provide substantial ongoing yearly dividend income.
Furthermore, there is considerable evidence that the value of timber investments have a high correlation to inflation, and can provide an excellent inflation hedge. Given the amount of money printed by Central Banks, it seems increasingly likely that there could be substantial inflation in the future.
Whilst the demand for timber obviously plays an important role in its price, the most important variable affecting the returns from timber investments is the growth of trees. Trees do not care about whether stocks go up or down, which means the returns on forestry investments are uncorrelated to global financial markets. This is because the owners of forestry investments can withhold harvesting their wood. If they find the price of lumber low, they just don’t harvest. There is no cost of storage and the trees continue to grow and increase in value. GreenWorld believes that this makes timber investments and forestry investments an ideal “sleep well at night” solution for those anxious about their financial future.
Furthermore, Timber investmentsand Forestry Investmentsare green investments. Well managed plantations for forestry investments can provide two major “green world” solutions:
- The trees in forestry investments can capture and store huge amounts of carbon dioxide, thereby mitigating the effects of global warming. For example, our bamboo investmentsliterally sucks in huge amounts of carbon dioxide.
- Furthermore, forestry investments – particularly tropical forestry investments that are renewable and sustainable – can go a long way towards preserving our old growth tropical rainforests. For example, our teak investments and agarwood investments are on well managed plantations and replace teak and agarwood that would otherwise be illegally harvested to meet world demand.
GreenWorld currently offers four forestry investments:
So, if you are looking for an excellent green investment whilst still obtaining excellent returns then Timber investmentsand Forestry Investments may be ideal for you.
Please contact us for additional information.