The stock market often steals the spotlight in the bustling world of investing. However, another competitor has been quietly passing shares for the past three decades. It is not gold, real estate or bonds. It is agricultural land. This asset class has not only averaged a return of 11% per year, beating stocks, but has also done so without a calendar year down.
The power of investments in agricultural land
Agricultural land is a unique asset class that fulfills the first basic human need: food. As the world's population continues to grow, the demand for food is escalating, and consequently, so is the demand for agricultural land. Conversely, the supply of agricultural land is decreasing due to urbanization and climate change. This supply-demand imbalance creates a favorable environment for investment in agricultural land.
Interestingly, farmland has outperformed stocks over the past 30 years with zero down calendar years. This means that investments in agricultural land have consistently given positive returns year after year, regardless of the economic climate. This level of stability is a rarity in the investment world, making farmland a valuable addition to any investment portfolio.
Appeal to high profile investors
The investment potential in agricultural land has not slipped away from high-profile investors. For example, Bill Gates, one of the richest individuals in the world, has purchased a significant amount of agricultural land. His investment strategy highlights the potential of agricultural land as a sustainable and profitable investment.
The role of financial advisors
Given the investment potential in farmland, it is surprising that many financial advisors have not recommended this asset class to their clients. If your financial advisor hasn't suggested farmland, it's worth asking why.
Perhaps they are not aware of the investment potential of agricultural land or may not have access to suitable investment opportunities. Regardless of the reason, it's important to have a conversation with your financial advisor about this overlooked asset class.
The new breed of financial advisors
In the modern investment landscape, having a financial advisor who is educated, sophisticated and acts as a fiduciary is essential. These advisors understand the potential of non-traditional asset classes like farmland and can provide access to suitable investment opportunities.
These advisors are not your typical financial advisors. They are fiduciaries, which means they are legally bound to act in your best interest. They are also educated and sophisticated, which allows them to navigate the complex world of investments and identify promising opportunities.
CONCLUSION
In conclusion, farmland is a unique asset class that has outperformed stocks over the past 30 years without a calendar year. With the world's population continuing to grow and the supply of agricultural land dwindling, demand for this asset class is set to increase.
If your financial advisor hasn't suggested farmland, it's time to ask why. With the right financial advisor, you can tap into the potential of farmland investments and diversify your investment portfolio. After all, in the world of investing, it's not just about stocks and bonds. There is a whole world of possibilities, and farmland is one of them.
Frequently asked questions
Q. What makes farmland a unique asset class?
Farmland fulfills the number one basic human need: food. As the world's population continues to grow, the demand for food is escalating, and so is the demand for agricultural land. Conversely, the supply of agricultural land is decreasing due to urbanization and climate change. This supply-demand imbalance creates a favorable environment for investment in agricultural land.
Q. How has farmland performed compared to stocks?
Farmland has exceeded stocks over 30 years with zero calendar years. This means that investments in agricultural land have consistently given positive returns year after year, regardless of the economic climate.
Q. Why are high-profile investors interested in farmland?
The investment potential in agricultural land has not slipped away from high-profile investors. For example, Bill Gates, one of the richest individuals in the world, has purchased considerable agricultural land. His investment strategy highlights the potential of agricultural land as a sustainable and profitable investment.
Q. Why might a financial advisor not recommend investing in farmland?
Perhaps they are not aware of the investment potential of agricultural land or may not have access to suitable investment opportunities. Regardless of the reason, it's essential to talk to your financial advisor about this overlooked asset class.
Q. What qualities should a modern financial advisor possess?
In the modern investment landscape, having a financial advisor who is educated, sophisticated and acts as a fiduciary is essential. These advisors understand the potential of non-traditional asset classes like farmland and can provide access to suitable investment opportunities.
Q. Why should I consider farmland as part of my investment portfolio?
With the world's population continuing to grow and the supply of agricultural land dwindling, demand for this asset class is set to increase. If your financial advisor hasn't suggested farmland, it's time to ask why. With the right financial advisor, you can tap into the potential of farmland investments and diversify your investment portfolio.
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