Music, insects & Co .: Whiskey, music and insect farms: Bloomberg names alternative investments far removed from the stock market and the stock market | message
• Investment opportunities outside of the stock exchange and stock market are also possible
• Bloomberg mentions alternative investments
A mix of different types of investment not only makes sense, but should be a must for every investor. Ideally, fluctuations in the portfolio are balanced out in this way without having an overly negative impact on performance. Bloomberg has listed a number of investment opportunities – far from the stock market – that not only meet the above criteria, but are also fun.
Whiskey – not in bottles, but right in the barrel
Bloomberg mentions whiskey as the first alternative investment opportunity. Investing in the spirit can turn out to be worthwhile. After all, in the past, auctions were sold in the millions – for a bottle of limited drops. Investors can also go all-in and buy whiskey by the barrel instead of the bottle, advises Bloomberg. Because compared to wine, whiskey gets better when it gets older – and if it comes from the barrel into the bottle, it does not mature any further. In order to secure barrels that are nearing their bottling dates, investors nowadays often take the help of so-called whiskey brokers.
The investment situation in the whiskey market has proven to be excellent in recent years, according to the Knight Franks Wealth Report 2020, the value of rare whiskey has increased by 564 percent in the last ten years – more than any other luxury goods. But investors would also take risks when investing in barrel whiskey – the barrels could leak, which affects the quality.
A barrel costs between 11,000 and 700,000 US dollars – depending on the product – so the pleasure of investing in a whiskey barrel is not cheap.
Just invest in music
For decades, owning music rights was primarily reserved for record companies and the artists themselves. But the advance of social media has opened up a new field of business for musicians and investors can also benefit from it. Because song rights are always required when a video is to be accompanied by music or, for example, streaming companies provide musical accompaniment to their own content.
While most of the music rights still go to record labels, companies, funds and billionaires, there are opportunities for private investors to profit in this area too. An investment in the listed Hipgnosis Songs Fund Ltd could be worthwhile, here investors have returned 17 percent in the past twelve months. One could also consider Royalty Exchange, a Denver-based company that operates a marketplace where artists sell royalties to fund their work, experts at Bloomberg advise.
Of course, systems in the music business are not entirely risk-free either. After all, the music market is volatile, and anyone who invests in license fees for newcomers has a hard time assessing whether the music will find fans and whether the investment will ultimately pay off.
Environment: investing with confidence
Investing in climate protection is already very popular with many investors. Bloomberg has opened up a new investment opportunity in this segment that few investors have seen so far: it is called “Restored Wilderness”. The goal of organizations and investors is to restore nature in a certain area to its condition from a long time ago.
While Anders Povlsen, a Danish retail billionaire among others, has dedicated himself to this goal, less wealthy investors can also invest money in this segment. But if you want to actively help here, you have a lot of work to do. Because in addition to the acquisition of land, research must also be carried out in order to determine the original state of botany and animal world and ultimately restore it. Anyone who invests their money here must expect a very long investment horizon, because corresponding restoration programs can drag on for decades and even longer. Investors have to be patient for a long time until the wilderness condition is actually restored on the property.
Even if you don’t have to be a billionaire to consider such investments, the acquisition of a suitable piece of land can still be expensive, and investors should not ignore the follow-up costs.
Insects – tomorrow’s food
Another alternative investment is in the food segment, according to Bloomberg. But instead of investing in listed manufacturers of bulk foods, the portal mentions another option: insect farms.
For some time now, insect farms have been seen as a possible solution to fighting hunger and malnutrition. Even if this type of food supply has not yet found a large following in Europe, there are now numerous investors who are investing money in this segment. That includes Astanor Ventures, a Brussels-based company that raised $ 325 million last year to invest in sustainable agribusiness startups. Astanor’s portfolio also includes Ynsect, a startup that breeds mealworm beetles for animal feed, fertilizer and fish meal.
Insect farms as a food source of the future for humans as well could receive more attention in the future, because the climatic advantage that insect breeding brings with it compared to, say, cattle breeding is undeniable. However, it remains to be seen whether insect food will actually find enough fans to make an investment in this segment worthwhile.
In addition, an investment in Astanor, for example, is reserved for well-heeled investors – the minimum investment according to Bloomberg is 250,000 euros.
Beautify your own garden
Another surprising addition to Bloomberg’s list of alternative investments is investing in your own garden. The portal explains that property owners can create their own oasis of wellbeing and thus (at least on a personal level) can immediately benefit from the investments.
As far as the return on investment is concerned, a different calculation has to be made here. Fundamentally, investments in the property and the property increase the value of the same – provided one is considering a sale. Amanda Pendleton, spokeswoman for US real estate website Zillow, said homes that featured landscaping are worth 2.7 percent more money. Landscaping, new windows and modernizing the bathroom are the best investments before selling a house, Bloomberg quotes the expert.
But if you invest your money in all too extraordinary garden designs, you can also achieve the opposite and reduce the value of the property. In addition, the follow-up costs should not be ignored, because a garden has to be looked after.
A beautification of your own property is relatively inexpensive: Effects can be achieved from 2,000 euros – but the costs for professionally designed landscapes are significantly higher.
Finanzen.net editorial team
Image sources: Africa Studio / Shutterstock.com, maradon 333 / Shutterstock.com