With the stock market rising to record highs, my fears of a bubble-burst were growing. So, I sold a majority of my stock holdings and invested my profits (not principle) in an alternative investment; shipping containers. Yes, the giant steel boxes you see on ships, trains, and trucks.
My decision to seek an alternative to traditional-type investments came after I considered options like bonds, gold, and real estate. In most instances, those would be my go-to three. Not this time. With interest rates set to rise, the bond market seemed like a risky investment. Gold has been a poor performer and a disappointment for years. And, the real estate market is challenging and subject to political influence; take Brexit for instance. Because of these reasons, none of the usual investments interested me.
Shipping containers, on the other hand, are the workhorse of the global economy. I recently discovered that more than 90% of the world’s trade is moved by the container shipping industry. If countries around the world want to increase their GDP, they’ll need a lot of cargo containers to do it! Consider for a moment the economic potential of China and India alone.
To purchase and lease my three shipping containers I enlisted the help of Davenport Laroche. They are a container leasing company based out of Hong Kong, one of the world’s largest shipping centers. In fact, in 2016 there were nearly 20 million containers moved through the port of Hong Kong. This performance has placed it number five on the list of Top 50 Container Ports in the world.
The kind representative from Davenport Laroche helped me better understand the outlook for the container industry and explained the rising demand for shipping containers, particularly in Asia. She explained to me that with China’s introduction of their One Belt, One Road initiative, container traffic in Asia and Europe is expected to rise significantly, over the next decade. The containers purchased from Davenport Laroche will be participating in, and profiting from, this strong Eurasian growth. Factor in the 12% annual return on investment and a container lifetime of more than 10 years and you have a residual income for more than a decade.
Certainly there are other container leasing companies that offer opportunities similar to Davenport Laroche. However, some investors had a good experience investing with another company, while others questioned whether the whole thing was a scam or not. I decided against the other companies and instead choose Davenport Laroche because of their pristine record and transparency.