Friday, October 26, 2012

Careful where you invest you hard earned money!

I have recently come across a lot of weird investments that promise ridiculously high returns and offer to make people millionaires overnight. My advise to everyone is to be extremely careful where you invest your hard earned money.

The other day I noticed a web advertisement on forestry investment. I will not reveal the website as I do not want to hurt anyone's feelings, but here is the main idea behind forestry investment.

In a few words, you invest some money on a tree. The tree grows in size thus more timber can be sold once the tree is cut and more money is returned on your investment. Even though the investment promises an 8%-14% return per year, the so called entrepreneurs seem to ignore demand for timber. If demand is low, price of timber and trees will be low no matter whether a tree is growing in size or not. Return is not only based on supply but on demand as well.

Have a green night. 


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