Truffle producing trees provide a unique investment opportunity. We don’t know of another investment with the same array of benefits, anywhere. Truffle producing trees are a true alternative investment and a great way to diversify your portfolio.
But are truffle producing trees right for you? Not everyone wants the same thing in an investment.
To help our readers find out , we’ve made a balanced list of the pro’s and con’s of investing in truffle producing trees. Read on, to find out if truffle trees are right for you.
Pros
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A More Diversified Portfolio
Stocks and real estate might seem like a diversified portfolio but they’re both tied to the success of the U.S. economy. If the economy hits hard times, stocks and real estate are going to lose value.
Like other forestry investments, the success of truffle producing trees is not linked to the economy. Our truffles, like the trees they grow on, will continue to thrive year after year regardless of market conditions.
Forestry has always been regarded as the safest place to put money for long-term rewards. Truffles offer this security, but with an added bonus.
Annual Returns
The average forestry investment takes between 20-50 years for investors to receive their profits. Unlike other forestry investments, truffles pay out annually to investors. We constantly preach the rewards of patience, but waiting two decades to get paid seems excessive even to us.
The Périgord Black Truffles we grow are harvested each year between January and March. We take care of the harvest, and selling the trees. As one of the biggest truffle suppliers in Europe we use our market connections to ensure we get the best price.
Faster Payouts Than Forestry
Thanks to the expert care and attention our trees have been receiving, they’re growing better than even we expected. We recently harvested truffles from trees as young as 3 years old. This puts us way ahead of schedule aw we weren’t expecting the first yields for another year or two.
Just as importantly, our early investors are already receiving returns on their investments. Truffle prices are also higher than forecast making 2022 a memorable year for everyone connected with Truffle Farms Europe.
Cheaper Than Forestry
Forestry investments aren’t cheap. In fact, they’re not really feasible for the average investor. Most reputable timber investments start at $100k and can run into the millions of dollars.
Investments in smaller plantations in developing countries is another option, but this comes with a lot of risks. Outside of Europe and the United States, regulations are slack and sometimes plain corrupt.
Our plantations are in Spain and Scotland and our Head Office is in Scotland. We’re able to offer the security of operating within European Regulations, without having the prohibitive cost of entry you find in traditional forestry.
Green Investing Benefits Everyone
Our truffle producing trees are ethical, sustainable and 100% green. We only use native trees, so our plantations grow in harmony with the surrounding eco-system. Europe’s forests were decimated over the past hundred years and we’re playing our small part in bringing them back.
Making a green investment means putting your money to work in a way that benefits you and the wider world. We believe the combination of ethical investing and steady profits really sets truffle producing trees apart from other opportunities.
Tax Breaks
Governments across Europe and North America are doing their part to promote green investments such as truffle producing trees. They’re offering a range of tax incentives encouraging people to make green investments. These can make a big difference when it comes to realizing your final profits.
Capital gains on stocks, for example can reach 15% or even 20% each year. Truffle producing trees are taxed at a fraction of that rate. In some cases they can even be tax free.
Visit Your Trees And Enjoy The Benefits Of Being A Member
When you buy your trees with us, you are welcome to visit the plantation at any time. We do frequent tours of our El Pozuelo plantation with members. This allows them to see how their trees are doing and stay abreast of the latest news and developments on the site.
Meeting up with memberrs and forging long term relationships is one of the perks of this line of work.
Paid Out In A Currency Of Your Choice
Several our investors are Americans who want to spend more time in Europe. They take their truffle profits in Euros and enjoy having a passive income source to keep their European bank account topped up.
But, we’re happy to pay you in the currency of your choice.
Cons
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Long Term Investment
Investments involving trees are always a long-term process. Although we offer faster returns than others in the space, this is not a get rich quick opportunity.
We pay out annually over a period of more than two decades. If you’re looking for a secure income stream that will be providing for you and your loved ones from this decade into the 2040’s we can help. If you’re looking to make a fast buck, then truffle producing trees aren’t for you.
Not As Exciting As Crypto Or Stocks (Most Of The Time)
The high drama of Wall Street or the crypto market can be pure drama. No wonder there have been so many films and documentaries made on both. Hollywood stories aside, most investors enjoy following the ups and downs of the markets on the nightly news. Some even follow in real-time on the live tracker.
By comparison a truffle investment is much more mundane. Black Truffles grow underground, on the roots of their preferred trees. In our case, that tree is the Mediterranean Oak.
Unfortunately, there’s no way of following the progress of truffles as they grow. They’re out of sight and out of mind. For 10 months of the year, truffles are the most boring investment imaginable.
But that all changes during the harvest season.
That’s because before you can harvest truffles, you need to find them. And hunting for truffles is a thrilling experience. Watching the dogs following the scent, then digging up these rare and valuable nuggets is tremendous fun.
Any investors of ours who are in Spain during harvest season are welcome to join us and experience the truffle harvest first-hand. It more than makes up for the lack of excitement the rest of the year.
In Conclusion
We believe the pros outweigh the cons, when it comes to truffle producing trees, but it ultimately depends on what you want from an investment.
At A Glance
Pros
- Diversify your portfolio to a higher degree
- Receive annual payments on your investment
- Truffles are cheaper than forestry
- Truffles pay out to investors considerably faster than forestry
- It’s a green investment that benefits the planet as a whole
- Truffle producing trees come with a range of tax benefits
- You can visit your trees anytime and enjoy hunting for truffles during the harvest
- Get paid in a currency of your choice
Cons
- This is a long term investment with no chance of getting rich overnight
- Truffle producing trees are not as exciting as tracking the performance of your stocks or crypto