Ownership of a Teak Plantation
Hardwoods Unlimited is a Panamanian company that specializes in the teak industry. Established in 1999 with its first planting of 100 acres, the company has nurtured the growth of over 43,000 teak trees. Growth rates are in the middle of the bell curve for teak aged 15-years old and projected volumes are on track for harvest estimates. With over two decades of expertise in planting, growing, and maintaining a plantation, Hardwoods is an experienced partner for the Panama Residency Visa Program.
In this day and age, a healthy skepticism is critical for success and protection. Hardwoods Unlimited encourages you to do your homework. Hardwoods Unlimited was founded by a group of business people already substantially involved in the region. It is important for the investor to understand the people who stand behind the company. Hardwoods Unlimited invites you to visit our plantation in Panama to see for yourself the realities of a Teak plantation. Contact us for upcoming Field Trips.
Value of Teak
Value, or worth is certainly one of the most important aspects of an investment into teak. Unfortunately, it is difficult to pin down exactly “the price” of teak, as prices vary widely due to many factors, including the age of the teak, quality of the soil it was grown in, country of origin, and dimensions of the logs sold. In the Teak Resources and Market Assessment 2010 Report, issued by the Food and Agriculture Organization of the United Nations, it is stated that “Available teak prices correspond to a mix of heterogeneous material from different countries that represent wood harvested from plantations with different silvicultural treatments and timber quality.” Despite the difficulty in pinning down the exact price for specific teak sales, industry average and trend data show teak prices to be incredibly strong and growing.
As seen in the chart on the left, timberland investors have made 325.52% since 1987, beating the S&P 500’s 223.11% return by nearly 50%— without the S&P’s frightening volatility. Historically, teak prices have exhibited very strong growth. From 1975‑2005 teak prices increased by 8.3% per annum compounded. The reason for this strong and steady increase is a growing demand coupled with a dwindling supply.
A Hedge Against Inflation
Teak is an excellent hedge against inflation. As the chart shows, the value of teak logs and other teak products has consistently increased well above the rate of inflation, meaning that an investment in teak will not only hold its value as time goes on, but actually increase in value.
Timber is a favorite investment opportunity for many other ultra‑wealthy individuals. John Malone, former CEO of Tele‑Communications Inc. and one of America’s wealthiest individuals, owns 2.2 million acres of timber. Ted Turner, another extremely prominent and wealthy American media‑mogul, owns over 2 million acres of timber. Additionally, the Harvard Endowment Fund, which is worth $30 billion, holds 10% of its assets in timber investments. Simply put, teak and related timber products have for years been a key component of many wealthy individuals and family office investment portfolio.
Now, the time has finally arrived for those without 7‑digit bank accounts to invest in this incredible opportunity as well.