Forest investments: “Investing in forests is like playing the lottery” – Economy

Of

Kathrin Werner and Paulina Würminghausen

These are not good times for the forest. At least not in Brandenburg, Saxony or many parts of southern Europe, where due to the extreme drought, one spark is currently enough to ignite fires that eat up entire forests. Almost everywhere: drought. bark beetle. But in the world of finance, of all things, the forest is taking on a whole new meaning. Because you can not only go for a walk in it and pick mushrooms – you can also invest your money in forests. The Gabler Wirtschaftslexikon defines this type of investment as a “financial product based on the planting, growth and/or management of forests”. Translated, this means: Interested parties conclude a contract in which it is stated that the forest should generate income and give part of their assets for it. If the trees grow as planned, investors get their capital back, plus a return. At least that is the hope of many people.

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