Green Investment: Teak Reforestation
While I’m in the television studio next week, I plan to shoot a video on what may be the single most interesting investment concept in sustainability I’ve come across this year: teak reforestation. Consider a few basics:
Hardwoods, especially teak, can only become more valuable as the world’s population of consumers grows, coupled with heightened restrictions on logging. So along comes a company that says, “OK, buy some trees from me. I’ll plant them, tag them with unique GPS coordinates, care for them for their 20-year lives, and guarantee to replace any that die prematurely. At their maturity, I’ll fell them, process them, and sell the wood for you. You make an attractive rate of return, since your asset is literally growing every day.”
I think of this as akin to investing in precious metals that miraculously expand in volume over time. (more…)