# Key Post: Third Forestry Investment Plan



## Marion (27 Sep 2001)

I misposted this in the "letting off steam" section so please ignore that one.

Just wondering if anyone knows anything about the forestry investment that is currently being advertised?  Has anyone been involved before, or had any experience.  I was thinking of an investment for a couple of children?  Is it suitable?


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## endowed (27 Sep 2001)

*Re: Third Forestry Investment Plan*

Hi Enquirer

This is what Brendan says in his book "The D.I.Y. Guide to Savings and Investments" (See link on top of this page) about  Forestry Investment in general:

                      FORESTRY

"Forestry is an attractive investment to many people. There are generous grants available to plant trees commercially. The profits from forestry are tax free. The BIG disadvantage is that forestry is a very long term investment and the returns are just so uncertain. The best way to invest is through a forestry fund , such as the Seventh Irish Forestry Fund. This is like a unit linked fund in that you can invest as little as £500 in such a fund. In 30 years time, when the forest matures, you will get your money and profits back. 

The problem is that most of us don't have a 30 year horizon for investing. If you want your money in 10 years time, there is very little you can do about it. The promoters will try to find a buyer for you, but you have no way of knowing whether or not there will be a demand for your shares. 

Just in case you think forestry is a good thing to invest in from an environmental point of view, it is not very clear cut. Most of the commercially planted trees are evergreens and are not native to Ireland. They have often been planted in the wrong places and damaged rural communities and environmentally sensitive areas. They have been accused of acidifying rivers and contributing to the decline in salmon. On the positive side, trees are very important in processing carbon dioxide.

Unfortunately, planting environmentally valuable native trees such as oak or ash or rowan is not economically viable."


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## rozzer (11 Oct 2001)

*Forestry Investment Funds*

I have a few shares in one of the previous forestry funds.While they are a long-term investment, I would like to know how they are doing currently. Has anyone bought or sold shares in these funds, and if you did, what sort of price did you get?
I'd be very grateful for any information.


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## Brendan Burgess (12 Oct 2001)

*Re: Forestry Investment Funds*

Hi rozzer

This is the problem with forestry investment - you don't know how you are doing until the fund matures in 30 years time. 

Apparently, the company organises a grey market in the shares, but I don't think it publishes the price of deals. 

The guy running it is a very honest and respectble guy,(not just because he is a chartered accountant), but it's in his short term interest to get people who want to invest in forestry to buy into his new funds rather than buy out the old investors.

Having said that, I understand that the current fund raising is buying semi mature forests instead of planting from scratch. If that is so, then is one fund buying a semi-mature forest from an earlier fund ? This would free up some cash.

Brendan


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## Rozzer (17 Oct 2001)

*Forestry Investment*

Thanks Brendan,
If anyone else has any information ....
R.


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## CM (17 Oct 2001)

*Third Forestry Investment Plan*

The Farmers Journal has some detailed articles relating to forestry in case that's any use? Use their [broken link removed] to find them. It's a bit difficult to figure out what the results point to though. I believe that they may have had a special report on forestry investments in the last few months but couldn't find it.


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## CM (18 Oct 2001)

*Indo*

Not sure if this Indo is of any interest? On the other hand, whenever I hear the word "infomercial" I reach for my gun!


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## rozzer (19 Oct 2001)

*Forestry*

Thanks CM.


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