Oxstones Investment Club™The stock market is an avenue for making money but the unfortunate part is that it is erratic in its behavior which makes investing in stocks and bonds a high-risk proposition. Currents in businesses in one part of the world can impact the stock market in another. This volatility is something that can wreck havoc on investments and play truant with an investor’s portfolio. It can lead to loss of peace of mind and the financial losses can be a definite strain.
The current market scenario underscores this thought and makes it all the more crucial that investors consider other avenues of investing capital. Avenues that will be considerably risk-free and those that will reap consistent benefits for them, is the need of the hour. With this in view, Ethical Forestry across the world has become a preferred option and a large number of investors are veering towards it. Investing in timber is now gaining in popularity for various reasons.
The Long-Term Investment
The one thing that investors should be aware of is that Ethical Forestry is a long-term investment and patience is the key to profiting from it. Though some people find timber boring, what it does for their investment portfolio can be very exciting. Historically, it has been proved that investing in forestry can be a viable method of outpacing inflation. This is because every other financial market runs parallel to the forestry business and no matter what the inflation rate in a particular country, the price of timber continues to remain largely unscathed.
One of the main reason why this is the case is that when timber prices drop, companies can stall harvesting plans. Once the prices rise and the timber is harvested, investors can benefit from the higher prices and make larger profits. More mature trees are valued higher and investors only stand to gain from any harvesting delays. Ethical Forestry investments are also environment friendly. They are renewable and prevent soil erosion. It has proved to be the ideal investment tool for large and small investors who are seeking long-term investments.
The Best Anchor
In addition to this, investors should keep in mind that it is best to have timber investments as an anchor and it should not be used as a replacement for an entire investment portfolio. Over the last three decades, forest investments have grown and so have the number of companies offering it. From an investors viewpoint, what this means is that an investor should choose the company very wisely and ensure that it is not a fly-by-night operation.
The investor should ideally carry out a good amount of research online and try to identify other investors who have also engaged their money in forestry investments. This is one way of checking on the reliability of the company that the person is going to invest in. They can start out with the minimum investment and once they have gained some confidence in the entire process, can up their stake in it. That is a good way of building on the portfolio.
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