Timber: The One Asset Crushing Stocks

By The Sovereign Investor

When you’re hot on Wall Street, you are treated like a rock star. At a hedge fund investor conference in San Francisco, I was mobbed by people who wanted to speak to me. I was put up at the Fairmont Hotel, where suites go for $3,000 a night. At the fanciest restaurants in the capitals of the world — Geneva, Paris, Frankfurt — big-money investors would hang on my every word. Investors sent me $1,000 bottles of champagne, Tiffany vases, gold cufflinks and cases of wine as gifts.

Our hedge fund was up 20% for five years straight. Every big-money investor craves this kind of high-level, consistent performance. However, it’s rare. And when investors find it, they flood you with money.

Billions and billions of dollars. Our hedge fund grew from $1.5 billion in 2006 to over $5 billion by 2008. Our asset management company, which had about $5 billion under management in 2006, grew to over $25 billion in assets by 2008.

In our hedge fund, we took 20% of the profits we generated with investors’ money. On top of that, we charged investors for all expenses, as well as an annual fee of between 1% and 2%.

Yes, it’s obscene!

Now, the thing is, you really don’t have to have big money or pay these outrageous fees to get high-level, consistent performance. Sometimes you just need an expert like me to point you to how to get this on the cheap.

There is one investment in particular that generates high-level, consistent performance that big-money investors love. And it’s available to everyone. Unlike our hedge fund, you don’t have to give up 20% of your profits.

It’s an investment that I bet you’ve never heard about. Big-money investors like the ones that used to invest in my hedge fund know about it. And they put their money into it because it gives high-level performance consistently. So, what is this investment?

One of the best-performing assets over the last 27 years is timber, outperforming stocks, bonds and other commodities. Timber, based on returns between 1987 and 2014, generated 12.66% in returns per year compared to 10.42% for stocks, 6.69% for bonds and 4.82% for commodities.

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Disclosure: None.

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