Don't get caught out by the bamboo investment scam
Bamboo is a useful plant, but investing in a plantation won't make you rich, no matter what the cold-calling scammers say!
As an (unpaid) director of the London Cycling Campaign, a charity which does what it says on the label, I have been fascinated by the bamboo bicycle. I was a little disappointed to learn that only the frame is bamboo – the wheels, chain, gears, brakes and so on are conventional.
Even if the £1,750 price is beyond my piggy bank, the bamboo works because it dampens road shocks compared with steel, alloy or carbon fibre. And it shows this versatile material goes far beyond furniture. It can also be used in textiles, in the vehicle industry, as pulp for paper, for building, and a whole lot more.
There are over 1,500 varieties of bamboo. And there is also a fair number of scam bamboo companies claiming amazing investor returns.
An income of 24% a year!
A few months ago I wrote about so-called timber investments which promised – depending on the time of day – anything from 15% to 20% a year, often “guaranteed”.
Stuart, who cold called to sell bamboo investment, went further. He promised I would get an average annual income of 24%, plus a further capital appreciation of 21% after three years as a bonus.
Now this is all unregulated, so it seems the numbers can be plucked out of the air, but on £10,000 that would equate to an average of £2,400 every year, plus a further £2,100 in 2017. By 2018, I would have more than my stake money returned, so after that it was a free ride. Stuart promised I could have my returns paid anywhere in the world so the taxman would remain in ignorance.
He said I could start with £7,000, although adding that many “super-savvy investors” are putting in £50,000 or more. It sounded like the most wonderful golden goose. My role was limited to collecting the eggs as they fell – there was no effort in this “passive investment”.
Bamboo may be the fastest growing plant in the world, but if something grows fast and furious across many zones how does that make it such an amazing source of profit?
Stuart sidesteps the question, concentrating instead on how I shall own the land and could pass it on to my children.
Demand outstrips supply
Bamboo is a complex subject. Besides the varieties, there are the usual agricultural variables such as climate, soil type, and density of planting.
I never could find out where in the world my bamboo plantation would be. Or how many hectares I would have. There are no reliable figures on purchase costs or wages for labour.
None of that mattered, he implied. For “demand outstrips supply”. That's always the mantra when these cold callers are selling something. Even if true, all it means is that farmers in countries where it is cultivated – mostly Asia and South America, although some varieties grow in more temperate climates – will soon plant more.
The problem with the return promised is that most commercial bamboo is not big enough until after four or five years and it may not be fit to harvest until at least ten years after planting. The waiting period is because bamboo is a natural material which expands when the weather is wet and contracts when it is dry. This is not a good idea whether building a bike or a bungalow. But this can be minimised by leaving the bamboo to mature in the field and then giving it a further period in a drying shed. This is similar to timber – if you made a door out of freshly cut pine, it would warp and expand every time it rained.
Leaving all that aside, what would I get for my money? Stuart remained vague. All he told me was that I would be a fool to give up this wonderful money maker.
And where is the exit strategy from this apparently sure fire cash generator? There's a moment of silence before he tells me that because it is such a wonderful investment that keeps on giving year after year, no one would ever want to sell it.
Bamboo is fast growing. But not fast enough to replace the hole in your fortune if you fall for this one.
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Well, how convenient... your sure about the information you placed out there Sir... Can someone step in and shed a little bit of light on the subject a clear up some of the untruths you wrote about? FIRST OF ALL Bamboo is the plant of our future... there is no doubt! did you know that there are over 1200 species of this plant... However when someone talks about the most desirable species of BAMBOO they are speaking of the GIANT MOSO BAMBOO... First it has the potential to GROW close to a centimeter a DAY which makes it the fastest growing plant ON THIS PLANET!!! And because of this response a full harvest can be obtained within the first 6 years, Again, partial harvest of shoots begin the third year of growth and are worth money on the US market... that is why you hear these 3 yr claims and again depending on how many acres you farm the third year can have a significant impact on say your 10 ACRE LOTS! Second The plant can produce the valuable shoots and trunks the MARKET pays for by weight giving ONE PLANT multiple streams of INCOME potential.... FACT One Acre of MOSO BAMBOO has 500 Plants FACT is... THE PLANT HAS TREE characteristics but is actually in the GRASS family and has the ROOTING SYSTEM of grass which means it can grow in almost every climate and terrain, MOSO BAMBOO GROWS HARDY at temps of 4 below zero to 125 above... At maturity this PLANT can reach 80 FT in height and the trunks are similar in diameter to the PINE TREE averaging around 7 inches thick. FACT In most cases rocky rolling and sloped terrain have erosion issues that cause HUGE problems LIKE TN Tennessee! FACT BAMBOO grows in harmony with rock growing around and between and into the soil once the BAMBOO wraps its tightly forming root structure anywhere from 6-12 inches below soil level it builds a mesh of roots which creates a barrier and assist in RE ESTABLISHING soils hold and therefore STOPPING erosion!! And the other HUGE HYPE is WE EAT and DRINK THIS PLANT!! OUR BELOVED Chinese food is the most popular FOOD that uses the eatable portion of bamboo... until now we have been paying for over ripe product sitting in warehouses OVER IN CHINA!! Oh NO thanks CHINA! We Americans LOVE shoots and incorporate this food with other healthy items as it has 100% ORGANIC PROPERTIES and did you know that one portion of bamboo shoots has a 22% count of PROTEIN!! THIS has been a silent HUGE source of revenue for the Chinese and this business can be duplicated even PIONEERED here in AMERICA! Why be a Bamboo plantation owner? You do the MATH the research and the answer will come... the INDUSTRY WILL flourish here in our AMERICAN SOIL and for the FIRST time in FOREVER we can TAP into the 60 BILLION DOLLAR industry and CAPTURE that 42% increase being forecast from 2017 - 2027 I know a TON of GOOD Forestry care takers and Farmers that need ASSISTANCE and PARTNERS with SOLUTIONS. If you have the vision enough to see the DWINDLING WOOD INDUSTRY giving way to the internet or JUST believe in GIVING THE FOREST A BREAK FOR A WHILE and use BAMBOO in place of WOOD for building materials... The INTERNET KILLED THE PAPER PRODUCTS once a huge part of the FORESTRY and LOGGERS INDUSTRY now we hear about MILLS are CLOSING everywhere PEOPLE NEED an ALTERNATIVE to assist and BAMBOO FARMING can improve our chances and lives!! I mean LOOK IT UP BAMBOO out performs WOOD even STEAL in STRENGTH DURABILITY and FLEXIBILITY! You have a flooring company you already know this! WHATS ARE CURRENT GO TO PRODUCTS you'll be sick to HEAR ITS PETROLEUM we make everything into PLASTICS REALLY WHY NOT BLOG ABOUT THAT TRAVESTY OF AN INDUSTRY?! PLUS CHINA has been the ONLY importer of these ANTI FUNGI ANTI BACTERIAL 100% ORGANIC... WAIT FOR IT NO PESTICIDES NEEDED!!! creates a HUMUS around the plant that self sustains it has stood the test of time over periods of CENTURIES These ORNATE pagoda's STILL STAND from the 8th - 14th Century there's your proof of sustainability and now its in everything bamboo can break down to be used in over 1500 different everyday PRODUCTS external and internal! There's NO SCAM here JUST FEAR of the unknown but I guess if we didn't ever get past our fear we would still being drawing stick figures on cave walls.... Peace
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28 May 2018