Trees, sometimes we take them for granted. These amazing plants that turn into massive, beautiful, timber-producing assets, can help you to build your portfolio, ensuring your financial future.
There are many different benefits of putting part your personal wealth in timber. Trees grow bigger every single day. They don’t care about a market crash, they just continue to grow, getting bigger, getting more useful, and increasing in value. Ownership of timberland used to be an asset reserved only for the rich, unavailable to the average investor…But times have changed, and a new window of possibility has opened. This is an opportunity that you don’t want to miss.
A Legacy for the Future
More People Invest in Timber as a Valuable Asset for Future Generations
There is an old Chinese proverb that says: The best time to plant a tree was 20 years ago. The second-best time is now. This Chinese proverb reminds us that what we do now has a massive influence on our future. You can choose to take charge of your current situation, whether you do or do not, it will show in your future results. So, why not plant some trees.
Where do you start? Well, that depends on your main objective. For the purpose of this article, I will assume that you want to create the most value possible for you and your family. This means that you want a tree that produces very valuable timber. You want a timber species that has been favored throughout history and is still interlinked with wealth in many places around the world, like India and China. Both booming countries economically and population-wise, these two countries also happen to be great importers of this wonderful natural resource.
Why Teak Timber Has a Great Impact in the Market
The wonderful natural resource I am referring to is Teak. Teak is widely used to produce furniture, decks, and structural elements. Teak receives its appreciation because of its many desirable properties, especially its durability and sustainability.
Young Teak Trees Already Acquiring Value
So where does Teak grow? Teak grows in the tropics and is native to Southeast Asia. Unfortunately, many of the native forests have been cleared, the trees have been taken, and the forests destroyed. Without sustainable management, the value has been detracted from the land. For several years the governments of India, Myanmar, Laos and Thailand have been trying to stop this destruction by implementing deferent kinds of legislation.
Both the destruction and the legislation have had a massive impact on the supply of Teak in the international markets, making this natural resource even scarcer. Luckily, teak as a species has made its way around the world. The Germans first introduced it in Africa at the end of the nineteenth century, before finding its way to the Americas.¹ Today, teak has been planted in multiple different countries in Latin America including Nicaragua, Belize, Panama and more.
ECI Development’s Teak Farm in Panama
Over the last 20 years, ECI Development has planted and professionally managed teak farms in Nicaragua and Panama. ECI Development created an opportunity for investors who don’t necessarily have a 7-figure bank account to invest in timberland. ECI Development owns multiple teak plantations that are divided into smaller plots for private ownership. This is the window of opportunity, the possibility to let your money work for you by owning precious trees that provide you with a valuable timber species. Giving you a comfortable idea of having your net-worth literally grow for you and your future generations.
- In Africa, the first teak introduced in trial gardens can be attributed to the German colonial administration at the end of the nineteenth century, and the extension of these species trials appears to have occurred at the beginning of the twentieth century. — Daniel Verhaegen, 2019
Daniel Verhaegen, J. F. (2019, Augustus 1). Opgehaald van http://hal.cirad.fr/cirad-00846130/file/TGG6_5_.pdf