Real Estate’s Long Term Investment Strategy can be compared to the Chinese Bamboo
This is my favourite article that I share with my investors at the beginning of every year. This is the foundation of Real Estate Wealth and we have to keep reminding ourselves to be patient.
Worth Waiting For…
North American investors who are obsessed with the next quarter’s results, in contrast with their Chinese counterparts, might draw a lesson from the example of the Chinese Bamboo.
“Consider the Chinese Bamboo: the seed is planted. It is watered. It is fertilized. But the first year nothing happens. The second year it is watered and fertilized again, but nothing happens. The same process is repeated during the third and fourth years; still nothing happens.
Yet, during the fifth year, in a period lasting no more than six weeks, the bamboo grows 90 feet.
Did the bamboo grow 90 feet in six weeks, or 90 feet in five years?
The answer is five years, because at any time during that interval, had fertilizing and water not been maintained, the plant would have died.”
As the bamboo, real estate in the long term will pay off. Be patient and take care of your investment, in the end it will take care of you. Buy and hold for the long term.
History has proven over and over, that in the long term, Real Estate is a solid investment. Real Estate is a true hedge against inflation with the potential to bring excess wealth to the Wise Investor.
With the continuing increase in immigration and with limited land available, it just reinforces the old saying that you should “buy land because they do not make it any more”. This has never been so true.