Shenhao starts from system downtime

Chapter 1275 Assets that travel through time

In the form of contracting, the development of the same area of ​​sandy land may cost Lin's Charity Foundation three to five times that of Ant Forest, and the key cost that causes such a gap is manpower.

If Lin Qian chose the contracting method, he would have to hire workers to take care of and cultivate the forest land.

In the past, human resources in China were extremely cheap, so Western countries opened factories to China to obtain cheap labor. However, with the development of the times, although the Chinese labor force is still not comparable to that of Western countries, but At least get rid of the word cheap.

Today, with increasing labor costs, labor costs have gradually become a burden for many companies. Therefore, many domestic companies can do work by one person. Used as a beast.

That's why the contract system chosen by Lin Qian was several times higher than the cooperative system chosen by Ant Forest for sand prevention and afforestation, because most of the extra costs came from labor costs.

After all, the management of sandy land and the cultivation of woodland cannot be completed overnight, and the time required is basically ten years.

of course……

No matter what, there are pros and cons.

Although the initial investment in the contracting system is high, as long as the early planning and development of the sandy land are completed, from now on, as long as the land contract period has not expired, the owner of this forest land will always be named Lin, and in the future Here, Lin Qian has the right to make any decision on how to deal with this forest land. Even if he ordered to cut down all the trees in the forest land, others have no right to interfere with Lin Qian, because all the products on that land belong to Lin Qian. private property.

Forest trees are an asset in itself, and it is also an asset with a very high threshold.

In foreign countries, those really top big families often choose to allocate a part of the underlying assets based on forests when they allocate their family assets. They usually purchase tens of thousands of hectares of forest land at one time.

There is only one reason, and that is value-added.

As we all know, trees will continue to grow over time. Normally, a healthy tree will double its volume and weight every ten years, and the value of trees often increases with the growth of trees. The volume and weight increase in a positive way, and a piece of ecologically sound forest land will increase in value by about 5%-7% every year.

These were not imagined by Lin Qian, but what Anatoly told Lin Qian when Lin Qian talked with Anatole at the beginning, because his family's asset allocation allocated a large number of trees, so Lin Qian The sources of these data are quite authentic and reliable.

Some people may say that the annual increase to 5%-7% is already a very good rate, but for those top families with huge wealth, how can they be satisfied with this.

Their real way of playing is usually to increase leverage.

Assuming that this family wants to purchase 10 billion US dollars of forest trees, before purchasing, they often use their own resources to obtain quadruple leverage at an interest rate of about 3%. After the enlargement, their original 10 US dollars will become 50 billion dollars.

Next, they will use all the 50 billion US dollars to buy forests. As I just said above, a piece of ecologically sound natural forest land will increase in value by about 5%-7% every year. To calculate, the original cost of 6 billion US dollars, after leverage expansion, the value-added rate of 10 billion US dollars will reach a terrifying 10%.

On this basis, the family will cut down one-fiftieth of the trees from these forests for sale every year, and then use the money from the sale to offset the interest rate of the bank. Finally, they will take out about 5% of the value-added profits to buy insurance , to protect the safety of its assets.

To sum up, after repeated operations, the value-added rate of trees based on 10 billion US dollars will reach more than 20% every year.

Back then, when Anatoly told Lin Qian about this operation, Lin Qian was quite shocked. He never thought that the usually inconspicuous trees could get such a generous reward for their master.

The most important thing is that this asset will not lose its existing value over time, because no matter how society develops, wood will always be a human necessity, and just because it is a human necessity, it will always be is valuable.

For a world-class big family like Anatoly, only assets like trees that can travel through time are real high-quality assets, so when Lin Qian was thinking about it just now, this was what he was thinking about.

The national conditions at home and abroad are different. Once the land in some foreign countries is sold, it will be private land from then on. As long as the family does not die, the land can be passed on from generation to generation. However, although domestic land can be contracted by individuals, But the ownership is always owned by the state, and even the longest contract period is only 70 years.

It is precisely because of this condition that few people care about forestry assets in China. Even those rich people who really want to allocate forestry assets mostly go abroad. Children and grandchildren will benefit endlessly, so why spend more money?

Lin Qian chose the contracting system, first of all, to complete the 6000-hectare afforestation plan stipulated by the system within the specified time limit. If he chooses the Ant Forest's method of cooperation with the local government, it will be full of various uncertainties. And choose the contract system, this land belongs to Lin Qian, Lin Qian can do whatever he wants, he can completely control it.

The second is that he wants to add a channel for the Lin Charitable Foundation to obtain a stable income. Although the land is not permanent, 70 years is already a long time. Even if it starts from saplings, it can take five years as fast as it can be slowed down. In 60 years, the cost can be recovered. As for the remaining [-] years, it will be profitable.

Choosing the contracting system is definitely a hassle, but it also has a lot of benefits.

After comprehensive consideration, Lin Qian chose the contract system without hesitation.

Thoughts were spinning in Lin Qian's mind, but in reality it was only for a moment.

Facing the astonishment in the eyes of Liu Wenyi and others, Lin Qian remained calm on the surface, but responded in his mouth: "Mr. Ma was able to make Ant Forest bigger and stronger because there are hundreds of millions of Alipay users behind it, and Our Lin’s Charity Foundation does not have such advantages as Chairman Ma, so I think the development method of Mr. Ma’s Ant Forest is not suitable for our Lin’s Charity Foundation, so I chose the contracting system.”

(End of this chapter)