Long term investing 2022 – The Walnut Fund
In the turbulent fast-paced society that we live in today, many seek sanctuary in the utopian idea of “long-term investments”. Nevertheless, if we can use the past couple of years as precedence for the future, we might conclude that the idea of “long-term investing” is either absolute or needs reforming now and fast.
In this article, we are going to go through some of the most popular go-to long-term investment options of today and at the end tell you about one that is new, innovative eco-friendly, and above all… profitable!
Long term investing in gold:
Gold is often considered a safe haven for investors looking to outrun inflation and earn a little on the side. Nevertheless, this precious commodity doesn’t always play by the books. Historically the price of gold has grown steadily, however, in certain periods it defies logic by depreciating in times of high inflation.
Actually, that’s exactly what gold is doing as of now (second half of 2021). While the world’s largest economies are reporting inflation rates ranging from 5 to 10 percent, the price of gold is staggering and not showing signs of going anywhere.
Long term investing in the stock market:
The way we see it there are 5 disadvantages to investing in stocks.
- Time – buying stocks is easy buying the correct stocks is hard. It takes hard work and a lot of due diligence to dig up the correct information and even then you can never be sure that it is correct.
- Stockholders paid last – In case something goes wrong with the company you invested in, preferred stockholders and bondholders get paid first while stockholders are in last place.
- The whole market is connected – If the overall market is doing poorly, investor fear often sets in and, even if your company is doing well your stock price is not guaranteed.
- Professional competition – Institutional investors, sophisticated trading tools, computer systems and, much more all compete for profit and making it difficult for the average trader.
Long term investing in Crypto:
When investors mention cryptocurrency, we immediately recall a story a US veteran told us that served in the Iraq war. At the time of the war, the Iraq dinar (The national currency) depreciated multifold times.
US soldiers seeing how rich the country was in natural resources i.e. oil and gas were convinced that following the war the currency would appreciate and that it was only a matter of time before they saw a profit.
Soldiers bought the currency by the bagful, and unfortunately many of them still have the same collection of worthless paper today. The point of the story is that currency, especially currency that isn’t backed by a precious commodity is speculative, leading to turbulent and volatile changes in value.
Long term investing in an alternative asset class – Walnut trees
Imagine an asset that values only grew, and paid a yearly dividend of 25-50 percent. Impossible? What if we told you it’s not? The Walnut Fund offers investors the opportunity to invest in walnut trees and enjoy the benefits that this asset class brings, while at the same time not having to do any gardening.
So why walnut trees? First and foremost, the value of your investment grows annually that is, the tree itself appreciates in value every year.
The wood stock, whether it be furniture grade or used for heating at the end of the walnut trees’ economic lifecycle can be worth multiple times more than the initial investment.
Secondly, most importantly, walnut trees produce walnuts! A nut that’s the price has been in demand for decades and not showing signs of stopping. With current market prices of around 2.5$ / kg of in-shell walnuts, a single tree can produce anywhere between 70 and 100$.
Of course, every investment has its disadvantages, and the disadvantage of walnuts is the wait. For the first 3 years, the tree must mature and develop. From year 4 onwards walnuts can be harvested.
Then again, many see this as an advantage. Walnut farming is reserved for those with the funds to not have any income for three years. This provides for a stable market price and has done so for decades.
So, what are you waiting for… join The Walnut Fund team and plant some trees!