Why this is an excellent investment opportunity
“Timber has outperformed every other commodity for the last 100 years.”
- For ninety eight of the last hundred years prices of teak have outperformed the stock market and it has also delivered a better return than property year on year. The average return is 9.7% and is currently 16.4%, (last year the IPD Foresty index returned 32%). Teak prices have risen by 300% over the last 4 years (ITTO).
- Demand for timber will increase per capita as population and emerging economies continue to grow.
- Supply continues to be under pressure from environmental restraints and consumers increasingly
- demanding timber from sustainable resources i.e. China is the biggest market for teak in the world due to demand for building materials.
- Only 1% of the worlds teak comes from FSC-approved forestry plantations.
- A combination of the value of a naturally growing commodity and the underlying land provides investors
- with a low risk asset creating a long term capital appreciation in a sustainable and environmentally beneficial medium.
- Harvard University invested US$500m of their total endowment fund into forestry last year