Monday, 23 April 2018
Some Forgotten Investments
I have written quite a bit about investing, saving and frugality. So here's the thing, there are some investments that have fabulous returns and are largely forgotten about by investors - and I'm talking significant returns on investment too. Try these for size.
1. A seed. Most seeds will give a 100 and even a 1000 fold return. One tiny zucchini seed will produce an abundance of food that you'll be giving away to all and sundry. One tiny wheat seed will produce 50 more seeds - that's 500% return on investment. One small tomato seed will produce about 25 tomatoes - that's 250% return on investment. This is pretty normal for many food bearing seeds.
2. A sheep (or cow, or goat). A sheep will produce enough wool to knit about two jumpers every year for about 10 years. A sheep will bear a lamb every year and sometimes twins. A sheep will also produce meat, lanolin and milk if required. Even if we only count the lamb it bears yearly that is a 100% return on investment every year, plus wool and meat if the offspring are butchered (not sure how to do that math, but it sounds like a diversified asset to me!)
3. A hen. A hen will lay an egg pretty much daily, hatch anything up to 6-10 chicks yearly, produce very potent fertiliser daily and can be butchered too - a very diversified asset indeed. Eggs are one of the purest and cheapest sources of protein too. Well, the math for the chickens could be 600% return per year, plus the return on fertiliser, eggs and meat - again not sure how to fully calculate this profit.
4 Our employment - Often overlooked as an investment, but it is our most productive and lucrative one. At an average wage of $50K per year, that equates to $2 million in earnings over a lifetime. That is a significant investment! (Yes, I know right. Where did it all go?!)
Anyway, I just thought I would even up the balances and bring to mind that some of the most amazing fiscal investments that return insanely high returns are directly from mother nature and our own hard work. These two genres of investment can easily blow real estate and share investing returns right out of the water if intelligently applied.
Something to ponder.
Take care folks and stay nice.
Mr HM (Phil)