Profits for Wealth and the Environment


One reason I like investing in timber is one can profit and help the environment at the same time.

Before we look at the money and the environmental elements let me hasten to warn you… I am prejudiced about trees.  I love them too much.

Douglas Fir

Limbs on a Douglas fir (click on photo to enlarge).

Sometimes the oddest things shape us… our lives… the way we feel about certain things.  Perhaps it was the experience of low hanging branches and the close limbs in the old stand Douglas fir forest behind my childhood home.   Those limbs made for easy climbing and I was always in those trees, climbing… building tree forts, watching the views from 100 feet up.   The trees were my friends!

This month’s issue of National Geographic has a must read article about a 3,200 year old Sequoia giant called, The President.

Nat Geo President Image

This picture is from that National Geographic article and this tree is just overwhelming to me. That little orange spot at the base is a man.  I have linked the article below because the photo is so outstanding that this small reproduction does not do it justice.  Be sure to read that article!

We have some huge old stand Hemlocks at our North Carolina farm as well.

merrily farms hemlcok

I am the green spot at the base and call these hemlocks, the Grandfathers.  They are no match in size for the old Douglas firs. They pale in comparison to the Sequoia… but I love them as well.  The hemlock has been attacked by the Wooly Adelgid blight on the US eat coast and we have spent thousands of dollars protecting these few old trees.

It’s good to be cautious when you read what I write about investing in trees.  I probably let my heart overly influence my pocketbook.

However investing in timber can be highly profitable and since there is a demand for wood… let’s cut stuff we grow specifically for lumber rather than cutting down the grand old stuff or any others!  What I like is to plant trees as a crop in areas that are bare and then harvest, sell, and replant.

Steve Rosberg is a good friend.  He was my banker in Ecuador for some years… more than a decade ago and then he returned to his homeland of Argentina and started two agricultural businesses… one in timber… one in vineyards. Here are Steve’s insights on investing in timber in Argentina… Uruguay and Ecuador… plus there are valuable tips about investing in timber anywhere.

The Economics of Timberland Investment – Ushay’s Outlook

By Steve Rosberg

timber

Argentine Timber.

“Timberland is an alternative asset class with a proven record of dependable returns.  It possesses unique qualities that offer an inflation hedge for portfolios making it especially attractive in today’s volatile economy.


Timber stumpage is a commodity whose price has historically tracked population growth and GDP.  Timberland offers owners the ability to hedge down markets by storing inventory on the stump, all while it grows.  Purchased conservatively, timberland offers great opportunities to add diversified revenue streams to your portfolio.” The University of Georgia – Center for Forest Business.

The Global Perspective

Forests have been providing essential services to mankind – to all inhabitants of the biosphere – since the beginning of time.

In our age, this ranges from the tangible uses such as firewood, construction material, pulp for industry, chemicals – and so, on and on – and less immediately visible outputs such as soil erosion protection, water and air cycle services, three-dimensional habitat allowing the development of great biodiversity, and a host of others. We want forests, we need forests for our survival.

Nature provided the planet with a great stock of forests, which mankind has been using forever. Total forested surface is decreasing – based on the last FAO statistic that I saw – at about 1% a year.

Use of forest products grows together with population growth and GDP growth.

We see the writing on the wall of rising population and rising GDP.

The responses to these trends follow two lines of action:

−    Attempts to protect natural forests from further reductions. This is important, as natural forests are very rich habitats and clearing them destroys their diversity irrevocably. Recreation of natural forests takes incredibly long time, and is always a different outcome than what was there before.

−    Substitute timber sources (and other forestry services) with plantation forests as much as possible, thus relieving the natural forests from the pressure.

Plantation forests are still only a small portion of total forested surfaces, but are already taking a lot of the pressure off some of natural forests’ more prized trees and massive industrial uses of their timber. Plantation latifoliate species are replacing the hardwoods with timber of similar characteristics at a fraction of the price. And they are doing so sustainably.

Plantation forests are generally monocultures – one or two species over great tracts of land – and tend to get environmentalists complaining of the loss of diversity. They are not wrong, in the same way that farming wheat, corn,  sunflower, soy, or any agricultural venture is a monoculture of similar characteristics. The real discussion is not about “good-bad” but about complex cost-benefit conditions in different situations. Except for the case in which a natural forest is clear-cut to make way for a plantation forest (yes, it happens …) the economic and the environmental balance tips in favor of plantations.

As you can see, when we talk of timberland investment, we need to define our terms. It can refer to buying an asset that will contain natural forest for preservation, for clearing and regrowth, for gradual selective use on a presumably sustainable basis, or to an asset containing a plantation forest. These are all “timberland” – but all essentially different assets, and completely different businesses.

Timber prices vary enormously, as timber tends to have a very low price per volume and transportation costs take on a very high incidence in the price a tree is worth on the stump.

Generally speaking, prices for timber on the stump will be those that the mills (sawmills, pulp or chipboard) are willing to pay, minus freight, handling, and cutting costs. Of these, other than the actual mill price, freight is the largest factor.

A corollary of this is that timber too far from industry may not be economically viable to harvest, so merely having thousands of acres of timberland is not an adequate measure of economic value.

Aside from stumpage price, the factors determining the profitability of a plantation are related to production cost, the dominant factors being land price and tree-growth speed.

Forestry is conceptually very much like a zero-coupon bond: you buy it today, and hold it to maturity, with no cash flow in between.

What you pay in up-front is the land value (there are other alternatives, but this works to get our ideas on the same page), planting costs, care and management until harvest. You may have some  income along the way from thinning and revenue from cattle grazing.

Comercially viable trees grow at different speeds in different places. For pines, in Canada and northern Europe it will take around 60 to 65 years. In southern US, where they get more light, it’s faster, around 30 years. In Corrientes, Argentina, around 15 years.

Obviously, for similarly priced land, and similarly priced trees, the fastest growing is the more profitable.

Whatever the particular equation, I think the following graph – drawn up by the University of Georgia – highlights  forestry’s central attraction: most of its growth in value comes from biology.

timber

Clearly, this graph will be different for each region of the planet, but I think the central driver will be equally predominant.

In short, from a global perspective, we have diminishing forest stocks, growing numbers of people demanding forest products, growing uses for forest products (with no substitute product on the horizon) and the ability to gradually balance the trends with plantation forests. The renewed use of forest-sourced biomass for energy will promote the growth of plantation forests and make them significantly more profitable, as will be discussed below.

What Type Timber Investment Vehicles?

From now on, all we will consider are plantation forests of a commercial nature (i.e. planted with profit in mind). For readers with acute environmental sensitivity, we stand by our statement that this is generally an environmentally positive investment from a preservation of natural forests perspective, and also an extremely efficient means of carbon sequestration.

All other forest-type investments fall into categories that are not profit-driven, so making comparisons becomes subjective .

There are also a number of different ways to hold timberland investments:

– You own the land, and the forest.

This is the cleanest situation, which forces you to appraise the property’s characteristics, determine its potential, budget and forecast, plant, care and harvest. There are TIMOs – timber investment management organizations – who will help you run this investment. Some will do pooled investment projects, so that you don’t need to be a zillionaire to have an economically viable plantation.

This type of investment is generally illiquid – you don’t go and sell a plot of land, or a participation in one – in the blink of an eye, it takes about as long as any other real-estate transaction. But, if you have the carrying capacity and foresight to separate your long term investments from your liquidity requirements, you benefit from:

– the intimate knowledge of the property (maximizes potential) and funding structure (minimizes surprises)

– buying the land at face value

– planting and caring for the trees at cost

– paying for the management at cost.

By now, you have probably realized that if you could hold a number of these investments, with tree-harvests scaled every year, or two years, in the same way that you can step your time-deposit maturities, you could be getting annuities with timber’s high returns, putting a little aside for replanting, and going on for another cycle, and so on indefinitely.

– You can also buy a REIT, or a listed company owning timberland

This form of investment has the great advantage over direct ownership that the asset is listed, and you have instant liquidity.

Now, to the flip side of the coin:

– They tend to have other assets bunched in there, like industry, for example. Which is fine if you want that, but it distorts the nature of “timberland” as an asset class.

– More importantly, in my opinion, is the fact that they tend to have hefty liabilities. To take an example, Plum Creek’s year-end debt was 47% of its assets in 2011. Now, aside from your timberland asset, you have interest rate management exposure, and credit renewal risk thrown in there. This is leverage, it can be wonderful. Or not. It is leverage, not timberland.

– The market prices for these assets is based on their cash flow expectation, which means, by discounting expected future revenues. The interest rate becomes your determining factor for pricing these assets. If it is low, you will buy timberland with low yields as the price will be high. Of course, you could argue that this will allow you to buy cheap timberland in high interest times, and have capital gains when the rates fall, and it’s true. But why not then trade interest rate options?

– Sometimes, the companies’ revenues are derived from purchases and sales of land. Which is also fine, but not “timberland investment”, which was the asset class we were looking at.

In short, REITs and timber companies may be wonderful investments, or not, but do not necessarily represent the asset class you are considering, and – most probably – the market will have taken a lot of the upside out of the underlying asset by the time you get to it.

The Need for a More Local Focus

The tremendous dispersion in timber growth speeds, and end-market conditions for timber, requires that in evaluating a timberland investment we take a more local focus. We need to scratch the surface and understand the rationale for holding any single property, or sets of properties. We are dealing with communities of living beings, that grow, mature and die, and if we are to make the most of such an investment, need to take this into account during their life-span.

As you saw above, the dispersion in timber growth rates is enormous, as is also the distance to industry in each case, both factors affecting profitability.

A key consideration is how will the investment be funded due to the very long growth cycles, with no significant cash flow. We mentioned earlier that if timberland will be funded with credit, unless the tenor of the credit matches the tree-growth period, there is a serious roll-over risk. Or should we say “inability to roll over” risk. Actually, it is two risks: the risk that there is nobody willing to roll over at maturity time – something which was inconceivable in first world economies until 2008, but which has been common in developing world. And the risk that the interest rate prevailing at renewal time is very high. In fact, it could be higher than the biological growth rate of the trees.

How Ushay has Structured its Business

We develop timberland investment projects in Corrientes Province, in Northeastern Argentina. We do so in such a way that each property is held in an individual trust, and investors buy participations in the trusts. This gives them collectively title to the land, the trees, and every business that is done on the property.

Each property is analyzed in depth to determine it’s best potential, and the investment project is designed around that.

Investors fund the project, and there is no financial debt associated with it, thus eliminating the risk of an asset being erased from the face of the earth due to leverage, which we have all become too familiar with in recent times.

Minumum investment size is USD 50,000 (earlier projects had a USD 100,000 minimum).  This allows investors to gradually build a portfolio of properties maturing over the years, as we expand into new projects.

Growth rates for pine and eucalyptus in Corrientes is as high as it gets – anywhere in the world – as is shown in Jaako Poyri’s graph below:

timber

All of our properties are in a radius of 6 miles, allowing for cost-efficient operation. All are on paved roads. All are within 25 miles of the nearest city. Our projected acquisitions for the coming years all fit these categories, although land prices will not wait for us.

Industrial investment – third parties’ and arranged by us – is coming in the area, driven in part by Brazil, only 60 miles away, with a very avid demand for timber products. The new industry will eventually allow us to at least double our projected stumpage prices, which means that all our projects’ projected yields will be much higher than the initial estimates.

Another plus is the fiscal treatment of timberland in Argentina, as it is virtually income-tax free (the growth of the timber as appraised year by year is exempt) and there are land tax and asset tax exemptions. In this, it is unique, and for investors not taxed on global revenue, this is an exceptional plus.

Pricing and Comparisons    

The chart below shows US timberland prices in USD per acre as reported by Brookfield Asset Management.

timber

Our El Carrizal Forestry Trust is currently selling for USD 1,500 per acre. Unlike the graph at right, the Carrizal price has projected management and upkeep for the duration of the forest included in the initial investment.

To Summarize:

The investor in an Ushay timberland project should expect to take away between 5 and 6 times his initial investment in a 15 year period adjusted for inflation, and still be left with the initial investment ready for another cycle.

New industry in the area will improve this equation even more.

Low entry levels per project allow the investor to “ladder” investments over time so as to create a portfolio of timberland properties with harvests in successive years. As the land goes right back into production for another cycle, this can be structured to be a perpetual source of family wealth.

And, if an investor owns a SUV, he can tell his conscience and neighbors to forget about his carbon footprint.

Timber investments can be profitable and more. They are to me… the ultimate dimensional investment.

Here is our North Carolina summer home (upper right).

merrily farms

We have a wonderful cool place to live and for me to play surrounded by a green inventory that grows in value.  Plus it serves as a great seminar center allowing delegates to enjoy the forests.  With our sustainable forestry, we can continually improve the forest and if due to low prices or because we love the trees too much, and we do not harvest then the value just keeps rising.

The first property we ever purchased in Ecuador (and one we do not plan to sell) is our hacienda Rosaspamba… almost 1,000 acres of forest… a lot of it virgin timber.  We let locals farm it on a growing reserve of potential, rich farmland, timber… and fresh air and a bold trout river.  The place where we can really get away in the Land of the Sun.

rosaspamba

These are what Merri and I consider great multi dimensional values.  We invite you to learn more about farming and timber in South America and the USA.

Gary

Learn Spanish as you learn about South American farming and timber.  Meet Steve Rosberg in Argentina or Uruguay.  Steve will provide a presentation about timber and agricultural investments during the Super Thinking + Spanish courses in Montevideo this February.  Join Our Super Spanish teacher, Spiro Michas, and Steve Rosberg as you learn to speak Spanish in three days and find out more about timber and agricultural investments in Argentina and Uruguay.

2017 Schedule

Enjoy the Good New Days

Many people yearn for a return to the good old days.  This is a mistake.  Those days are gone and will never return.  Honestly they really were not that good.  We would be sorry if they were here now.  The future is better and for a special few the days, months and years ahead will be much better than the past.   We plan to be among them and invite you to join us in an easier, freer, richer, safer world.

Soon you will be reading… again, about how instability in the US dollar threatens our lifestyles.  The dollar, once the world’s reserve currency is burdened with debt and deficits that threaten economic and social order almost everywhere.  This is nothing new.  In fact, deterioration in the greenback is one reason for a seven decade downward spiral in your and my freedom.  When we work hard and save carefully, but get less and less in return, we become boxed in.  It’s a never ending rat race.  This is a trap, a downwards spiral where the more dollars we get the less we can buy.

Learn how to have more freedom and time, less stress, better health care, extra income, greater safety and profit in your savings despite America’s deficits, debt and currency risk.

downwards spiral

A downward spiral of the US dollar began the downward spiral of our freedom.

Fortunately there are secrets that will allow a few to live much better, free of debt and worry despite the decline in the dollar’s purchasing power.   My wife Merri and I have traveled, lived, worked and invested around the world for nearly 50 years to gain this information.  Let me share the basics of this data and how it can help you.

The first fact behind this secret is that things are really good in the western world.  Despite the many problems, we are surrounded by more abundance and greater opportunity than almost anyone has ever enjoyed, anywhere, ever.   To enjoy a fair share of this wealth, all we have to do is understand human nature and learn how to invest in the new economy, as it changes and becomes new, again and again.  Merri and I have made seven huge transitions in the 50 years.  Each has allowed us to always stay ahead of losses that the majority of Americans suffer.  We are in another transition right now and want to share why and what to do so you can stay ahead and live a richer, independent life too.

The concept of democracy, as we learned it, has weakened, but we still have free will and do not have to let poor government, wars, economic and social injustice blur our well-being.  We can still be free and responsible for our health, our income and our wealth.  The majority of people blame on government and big business for economic failure.  They want them to fix the problems, step back from the change and rebuild from what they perceive as ruin.

The few who succeed see change as a gift instead.   No change is a guarantee that nothing gets better.  Evolution brings destructive innovation but such change is not ruin. It is opportunity.

The change in the purchasing power of the US dollar is one of the greatest risks we have to our independence, safety, health, and wealth, but is also a chance for huge profit as i explain below.   Though the greenback has been strong for a number of years, its strength is in serious jeopardy.  The growing federal deficits increase the national debt and this with rising interest rates propels a growing debt service.

When the Dow Jones Industrial Average recently passed 20,000, another milestone of “20” took place that has a much darker meaning to your and my spending power.  The U.S. national debt passed the $20 trillion mark.

The problem is that the Dow will come back down.  National debt will not fall.

In the past decade US debt nearly doubled and the Congressional Budget Office estimates that the rate of  debt will continue to rise for at least ten more years.  That debt is all the debt issued by the US  Department of the Treasury since 1790.  In other words in the ten years from 2006 to 2016 the US government added as much debt as it had accumulated in the previous 216 years!

That number does not include state and local debt.  That number doesn’t include so-called “agency debt ( debt issued by federal agencies and government-sponsored enterprises) which is “guesstimated” to be another $8.6 trillion or so.  That  dreadful number does not include the so-called unfunded liabilities of entitlement programs like Social Security and Medicare.

Do you feel burdened by personal debt?  Well, add the Federal National Debt because per person it is over $60,000.  If one adds in all the other debt each and every American owes over $100,000!   For each family of four, our friendly Congress has added an extra $400,000 debt.

How can America pay this back?

The answer is they cannot.  However there is good news.  Payback actually does not matter.  No one expects the US or any country to ever pay back all its debt.  Isn’t that nice? We all owe $100,000 but don’t have to pay it back?  Right?

Here is the bad news.  Everyone does expect every country to pay its national debt service.   This is why we know there will be a downward dollar spiral.  You see when debt service gets too high, governments always let the purchasing power of the currency fall.  It’s a dirty trick.  Someone owes you a bunch of dollars every month and they pay it.  The problem is those dollars buy less clothing, less food, less housing and energy and less everything.

Wait a minute isn’t that good for us?  If we each owe a $100,000 but get to pay it back in devalued dollars, don’t we reduce our debt?   Yes, but those are the same dollars we are paid with.  Those are the same dollars that pay for our food, our clothing and our shelter. Those are the same dollars in our savings account so the reduced purchasing power lowers our standards of living too!

Go to the store.  Buy some bread or, heaven forbid, some fresh vegetables like peppers or fruit.   Look at the cost of your prescription or hospital bills.   Do something simple like have your car serviced at an auto dealer.  Look at the dollars you spend and you’ll see what I mean.

A huge dollar conundrum looms from the rising national debt service as well.  During most of the last decade when the national debt was skyrocketing, interest rates were plunging and remained really low.  Now rates are starting to rise as will the US national debt service.  This chart from the Congressional Budget Office (CBO) shows that debt service is expected to more than triple in the next ten years.

dollar charts

Largely due to the Federal Reserve’s aggressive efforts to keep interest rates low, the U.S. government is paying historically low rates on its debt.

The CBO projects, unless the law changes, US national interest costs will more than double over the next 10 years, rising from $270 billion in 2017 to $712 billion in 2026 and totaling $4.8 trillion over the period.  Interest costs are expected to continue climbing beyond the next 10 years and are projected to be the third largest category in the federal budget by 2028 (after just Social Security and Medicare), the second largest category in 2046, and the single largest category in 2050.

These interest costs add up to trillions of dollars that won’t be spent on roads, on the military, on health care or the environment or schools.  That rising debt service creates a vicious cycle that can only lead to a devaluation of the US dollar so the debt can be paid, but in phony terms.

The loss of the dollar’s purchasing power erodes our independence, our freedom and our savings and wealth as well. 

At the same time, low interest rates by big banks and higher health care costs soak up the ever diminishing income and savings we have left.  According to a Gallup poll, the most unpopular three institutions in America are big corporations & Wall Street banks, HMOs and Congress.  Yet there is little we can do because these institutions are in control.

Over the last 50 years the average income for 90 percent of the American population fell.  Our health system is restricted by a Kafka-esque maze of legislation and insurance regulations that delay, frustrate, and thwart attempts by patients and doctors from proper medical care.  Big banks and corporations restrict our freedom of choice.  The business customer relationships are no longer transactions between free equals.

Banks can trap us in indebtedness at every age from student loans to mortgages to health care costs.  They pay almost nothing on our savings.  They hide unexpected fees and payments in complex and unreadable documents.  Banks and big corporations routinely conceal vital information in small print and then cheat.  Weak regulations and lax enforcement leave consumers with few ways to fight back.  Many of these businesses ranging from cable TV to phone and internet service to health insurance have virtual monopolies that along with deceptive marketing destroys any form of free market.

These same companies control the credit-scoring agencies so if  we don’t pay unfair fees, our credit scores will plunge and we could lose the ability to borrow money, rent an apartment, even to get a job.  Many consumers are forced to accept “arbitration clauses” in lieu of  legal rights.  The alternative is to lose banking, power, and communication services.

Big business has also usurped our privacy.  Internet companies sell our personal data.  Personal information is pulled from WiFi and iPhones track and store our movements.  The government can access this information, sometimes without subpoenas.  There’s a lot that we don’t know, often withheld under the guise of “National Security.”

The glow on Western democratic capitalism has dimmed… or so it seems.  The US, leading the way, is still a superpower with economic, innovation and military might, but the institutions that should serve the people have become flawed or broken.

America’s infrastructure is in shambles.  The nation’s bridges are crumbling, many water systems are filled with toxins, yet instead of spending more to fix this, we build more prisons.  The 2.2 million people currently in  jail is a 500 percent increase over the past thirty years.  60% of the inmates belong to ethnic groups.  Not just non-white ethnic groups are suffering.  Annual death rates are falling for every group except for middle-aged white Americans.  Death rates are rising among this group driven by an epidemic of suicides and afflictions stemming from substance abuse, alcoholic liver disease and overdoses of heroin and prescription opioids.

America’s middle class is shrinking.  Nearly  half of America’s income goes to upper-income households now.  In 1970 only 29 percent went to this group.  How can we regain our freedom, our happiness and our well being in such a world?  What can we do?

The answer to a better, freer life is to combine better health, higher income and greater savings for a happier, more resilient lifestyle. 

Merri and I are in our 48th year of living, working, investing and researching to find and share ideas on how to have simpler, low stress, healthier, more affluent lifestyles.  Our courses, reports and email messages look at ways to gain:

#1:  Low cost natural health.

#2:  Global micro business income.

#3:  Safer, more profitable, easy to make value investments.

Many readers use our services for just one of these three benefits.  They focus only on health or on earning more or on investing better.

27 years ago Merri and I created the International Club as a way for readers to join us and be immersed in all three of these benefits.   The International Club is a year long learning program aimed at helping members earn worry free income, have better affordable good health and gain extra safety and profits with value investments.

The three disciplines, health, earning and investing, work best when coordinated together.  Regretfully the attacks on our freedom are realities of life.  There is little we can do to change this big picture.  However we can change how we care for our health, how we earn and how we save so that we are among the few who live better despite the dollar’s fall.

We start with better lower cost health care.

Club membership begins by sharing ways to be free of the “Secret Hospital Charge Master”.   Just as governments hide truth behind “National Security”, big health care businesses hide medical truths behind “Charge masters”.  Most hospital charge masters are secret because big business does not want us to know how much hospital costs have risen.  Motivations beyond our good health, like corporate greed, want to keep us in the dark about health care cost.

Despite rising health care costs, a report from the Centers for Disease Control & Prevention shows that hospitals are the last place we want to be for good health.  One report shows that hospital-acquired infections alone kills 57% more Americans every year than all car accidents and falls put together.

Often, what patients catch in the hospital can be worse than what sent them there.  Governments and health care agencies agree  – antibiotic resistance is a “nightmare.”  An antibiotic-resistant bacteria may be spreading in more hospitals than patients know.  About one in every 25 hospitalized patients gets an infection and a 2013 report from the Journal of Patient Safety showed that medical errors are the third-leading cause of death in the country.

Along with the risk of hospital acquired illness and medical errors, the second huge threat to our well being… is health care costs, especially at hospitals.  This is why charge masters are so often secret.  There are few risks to our wealth that are greater than a hospital stay.

I have created three shamanic health reports are about:

#1: Nutrition

#2: Purification

#3: Exercise

Each report is available for $19.95.  However club members receive these three reports worth $59.85 free.

Club members also receive seven workshops and courses on how earn everywhere with at home micro businesses.  We call this our “Live Well and Free Anywhere Program”.   The program contains a series of courses and reports that show ways to earn and be free. These courses and reports are:

  • “International Business Made EZ”
  • “Self Fulfilled – How to Write to Sell”
  • Video Workshop by our webmaster David Cross,
  • The entire weekend “Writer’s Camp” in MP3
  • The report “How to Raise Money Abroad”
  • Report and MP3 Workshop “How to Gain Added Success With Relaxed Concentration”
  • The course “Event-Full – How to Earn Conducting Seminars and Tours”

This program is offered at $299, but is available to club members free. They save $299 more.

Next, club members participate in an intensive program called the Purposeful investing Course (Pi).  The purpose of Pi is finding value investments that increase safety and profit.  Learn Slow, Worry Free, Good Value Investing.

Stress, worry and fear are three of an investor’s worst enemies.  These destroyers of wealth can create a Behavior Gap, that causes investors to underperform in any market good or bad.  The behavior gap is created by natural human responses to fear.  Pi helps create profitable strategies that avoid losses from this gap.

Lessons from Pi are based on the creation and management of a Primary Pi Model Portfolio, called the Pifolio.  There are no secrets about this portfolio except that it ignores the stories from economic news (often created by someone with vested interests) and is based mainly on good math that reveals the truth through financial news.

The Pifolio is a theoretical portfolio of MSCI Country Benchmark Index ETFs that cover all the good value markets using my 50 years of global experience and my study of the analysis of four mathematical investing geniuses (and friends).

There are seven layers of tactics in the Pi strategy.

Pi Tactic #1: Determine purpose and good value.

Pi Tactic #2: Diversify 70% to 80% of portfolio equally in good value developed markets.

Pi Tactic #3: Invest 20% to 30% equally in good value emerging markets.

Pi Tactic  #4:  Use trending algorithms to buy sell or hold these markets.

Pi Tactic  #5:  Add spice speculating with ideal conditions.

Pi Tactic  #6: Add spice speculating with leverage.

Pi Tactic  #7:  Add spice speculating with forex potential.

The Pifolio analysis begins with a continual research of international major stock markets that compares their value based on:

#1:  Current book to price

#2:  Cash flow to price

#3:  Earnings to price

#4:  Average dividend yield

#5:  Return on equity

#6:  Cash flow return

#7:  Market history

We combine the research of several brilliant mathematicians and money managers with my years of investing experience.

This is a complete and continual study of what to do about the movement of international major and emerging stock markets.  I want to share this study throughout the next year with you.

This analysis forms the basis of a Good Value Stock Market Strategy.  The analysis is rational, mathematical and does not worry about short term ups and downs.  This strategy is easy for anyone to follow and use.  Pi reveals the best value markets and provides contacts to managers and analysts and Country Index ETFs so almost anyone can create and follow their own strategy.

The costs are low and this type of ETF is one of the hardest for institutions to cheat.  Expense ratios for most ETFs are lower than those of the average mutual fund.  Little knowledge, time, management or guesswork are required.  The investment is simply a diversified portfolio of good value indices.  Investments in an index are like investments in all the shares of a good value market.

Pi opens insights to numerous long term cycles that most investors miss because they have not been investing long enough to see them.

The Pi subscription is normally $299 per annum but club member receive Pi at no charge and save an additional $299.

Profit from the US dollar’s fall.

In the 1980s, a remarkable set of two economic circumstances helped anyone who spotted them become remarkably rich.  Some of my readers made enough to retire.  Others picked up 50% currency gains.  Then the cycle ended.  Warren Buffett explained the importance of this ending in a 1999 Fortune magazine interview.  He said:  Let me summarize what I’ve been saying about the stock market: I think it’s very hard to come up with a persuasive case that equities will over the next 17 years perform anything like—anything like—they’ve performed in the past 17!

Club members receive a report about opportunity in the  current strength of the US dollar is a second remarkable similarity to 30 years ago.   The dollar rose along with Wall Street.  Profits came quickly over three years.  Then the dollar dropped like a stone, by 51%  in just two years.  A repeat of this pattern is growing and could create up to 50% extra profit if we start using strong dollars to accumulate good value stock market ETFs in other currencies.

This is the most exciting opportunity I have seen since we started sending our reports on international investing ideas more than three decades ago.  The trends are so clear that I created a short, but powerful report “Three Currency Patterns for 50% Profits or More.”   This report shows how to earn an extra 50% from currency shifts with even small investments.  I kept the report short and simple, but included links to 153 pages of  Good Value Stock Market research and Asset Allocation Analysis.

The report shows 20 good value investments and a really powerful tactic that shows the most effective and least expensive way to accumulate these bargains in large or even very small amounts (less than $5,000).  There is extra profit potential of at least 50% so the report is worth a lot.

This report sells for $29.95 but when you become a club member you receive the report, “Three Currency Patterns For 50% Profits or More” FREE.

Plus get the $39.99 report, “The Silver Dip 2017” free.

With investors watching global stock markets bounce up and down, many missed two really important profit generating events.  The price of silver dipped below $14 an ounce as did shares of the iShares Silver ETF (SLV).   The second event is that the silver gold ratio hit 80 and has remained near this level, compared to a range of the 230s only two years ago.

These two events are a strong sign to invest in precious metals.

I prepared a special report “Silver Dip 2015” and updated this in 2017.   The report explains the exact conditions you need to make leveraged silver & gold speculations that can increase the returns in a safe portfolio by as much as eight times.  The purpose of the report is to share long term lessons about speculating in precious metals gained through 30 years of speculating and investing in gold and silver.

The low price of silver offers special value now so I want to send you this report because the “Silver Dip 2017” offers enormous profit potential in 2017.

The report “Silver Dip 2017” sells for $39.95 but club members receive it free as well.

The $39.95 new “Live Anywhere – Earn Everywhere Report” is also free.

There is an incredible new economy that’s opening for those who know what to do.  There are great new opportunities and many of them offer enormous income potential but also work well in disaster scenarios.

There are are specific places where you can reduce your living expenses and easily increase your income.  Scientific research has shown that being in such places actually make you smarter and healthier.  Top this off with the fact that they provide tax benefits as well and you have to ask, “Where are these places?”.

Learn about these specific places.  More important learn what makes them special.  Discover seven freedom producing steps that you can use to find other similar places of opportunity.

The report includes a tax and career plan broken into four age groups, before you finish school, from age 25 to 50 – age 50-to 65 and what to do when you reach the age where tradition wants you to re-tire.  (Another clue-you do not need to retire and probably should not!)

The report is very specific because it describes what Merri and I, our children and even my sister and thousands of our readers have done and are doing, right now.

Live Anywhere – Earn Everywhere focuses on a system that takes advantage of living in Smalltown USA, but earning locally and globally.

This report is available online for $39.99 but International Club members receive it free.

Save $418.78… “plus more” when you become a club member.

Join the International Club and receive:

#1: The $299 Personal investing Course (Pi).   Free.

#2: The $299 “Live Well and Free Anywhere Program”. Free.

#3: The $29.95 report “Three Currency Patterns For 50% Profits or More”. Free.

#4: The $39.99 report “Silver Dip 2017”. Free

#5: The three $19.99 reports “Shamanic Natural Health”.  All three free.

#6: The $39.99 “Live Anywhere – Earn Everywhere” report. Free.

#7: Plus more.

These reports, courses and programs would cost 767.78 so membership saves $418.78, “plus more”.

What’s the “plus more”?

Join the International Club for $349 and receive all the above online now, plus any online reports, online course updates or online programs we create throughout 2017 all at no additional fee. The club membership entitled you to everything.

The International Club membership is $499, but we want to encourage our first 100 members to join quickly so we are currently accepting discounted membership  at $349. 

Join the International Club for $349 and receive all the above online now, plus all reports, course updates and Pi lessons throughout 2017 at no additional fee.

Click here to become a member at the discounted rate of $349

Gary 

Read National Geographic article Snow Tree

 


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