Smart investing in Forest
Save and earn in a sustainable way
Investing in trees is a truly unique experience. Not only because it makes our planet greener but also due to the incomparable features like stability and profitability. Three can grow over any financial crisis, so it allows us to save accumulated profit and to earn additional funds. We often advertise our Tokenized Tree as an asset for people who would like to “save and earn in a sustainable way”. Let’s explain this in detail.
Trees are not good which instantly associates with investment possibilities like for example gold or oil, despite its attractive profit and stability. It happened like this because of historic reasons - owning the land and planting it with forests required a lot of funds and profits were expected in a distant future. Also, due to the logistics problems, there was no global market for lumber, timber was sold locally, so its price strongly depended on the demand in a village or town.
Nowadays with new technologies, the investment period has shortened, mainly due to the introduction of new species and better planting conditions. Also, timber became a good which could be shipped to any place of the world. And now, with Smart Forest, the costs of plantation for a singular investor also decreased.
As it was already mentioned the investment in trees has 3 features - it belongs to the hard assets (like real estates), it's very stable, and the investment gain grows with the tree growth.
In the pictures below you can check that forest funds can perform better in a long term perspective (20 years) then top securities.
Timber also can perform better than US Bonds, Global Equities, Equities of Emerging Markets (especially during the crisis time).
Please keep in mind that every tree in every climate conditions performance differently. We are focusing on fast-growing species, planting them in mild climate. Exact information about expected Return on Investment you can find in the description of each tokenized tree.
From our side, we do guarantee that the tree will be planted and that the profit from the harvesting is to be shared, as well as agricultural insurance. We cannot guarantee the exact tree performance (although our partners do the best to receive expected results) and we are not a financial institution. Therefore this is a high-risk investment.
On the first gaze “save and earn” are equal. But the reasons why investors want to save already accumulated capital or make new money are completely different, the same as risks. Timber is a perfect way to diversify the portfolio, as it has a very small potential of loss in value. Many banks and financial institutions keep the forestry assets in their portfolio, to have something which will keep them afloat if any of the other assets (most likely with higher risks) will go down.
In our daily life, we do not see the process called inflation. Inflation means decreasing the purchasing power by the estimated %. It is very difficult to measure inflation but according to the national banks, the global inflation between 2009- 2020 reached 3,45%.
You could see this in the example of apples.
Having trees assets allows preserving the money above the inflation rate, as the price of timber is also growing.
... Sustainable way
Sustainability and finances have something in common, both are tackling our future. But as it is sometimes indecent to talk about the finances, sustainability is fulfilling the first pages of newspapers, billboards, and TV channels all over the world. Many companies hire specialists from CSR, create yearly reports, change packages into environmentally friendly, and even greenwashes in marketing campaigns. Greenwashing is a term when the company pretends to be “greener” than it is. This precedent is occurring quite often, as CSR activities are often associated with throwing money away - as they impact often do not translate directly to sales results.
But this is a fundamental mistake in thinking about sustainability. In Smart Forest, we prove that being sustainable can bring very concrete profits. We already showed you the financial bonuses coming from the trees’ investment, it is time to highlight the other, not less important gains.
Smart Forest supports:
SDG number 8 - Decent Work and Economic Growth.
One of the main aims of Smart Forest is the democratization of forest investment and the popularisation of trees as a very stable investment asset. But to be a truly accessible asset for anyone it has to be also affordable. This is why we decreased the costs of hectares to the singular trees. Even investors with a very small investment wallet, could buy one tree per month and protect their financial future in a long time perspective. Also, trees as an anti speculative asset allow investors to preserve their capital during the turmoil times. Three can grow over the financial or political crises.
We also contribute to the UN SDG number 8 by cooperating mainly with local, family companies. Planting and maintaining trees give them not only a decent payment but also an opportunity to do what they really love.
SDG number 15 - LIFE ON LAND
Smart Forest also contributes to the sustainable development goal number 15 - Life on Land. By increasing the numbers of planted trees we support the ecology in a most natural and neutral way. Trees are cleaning the air and purifying the water. They help with the flood management as well as keep soil from erosion. It is also worth underlying our contribution to preserving biodiversity. 1 ha of Smart Plantations can bring the same amount of wood for the industry as 10 hectares of natural forest. Using timber from the plantation and preserving the natural forest keeps its natural, unique ecosystems containing thousands of species, untouched.
Also, we support using timber as an “environmentally friendly” material, unlike for example plastic. More timber for industry = more biodegradable materials.
SDG number 13 - CLIMATE ACTION
Trees capture carbon dioxide from the atmosphere and store it in leaves, roots, branches, trunks, soil, and woody debris. Planting trees is currently one of the best possible ways to capture the CO2 and neutralize the carbon footprint. The amount of carbon-capturing depends on the tree growing phase - young trees use more carbon as their growth is more rapid. With Smart Forest, you would know how much CO2 your tree neutralized due to individual Carbon Credits Counter made for each tree.