Choosing the right assets to invest in is critical to achieving financial success. If you’ve been considering investing in shipping containers, you’ve likely wondered how they stack up against other common assets, such as stocks and bonds. Here are four of the main ways in which shipping containers can prove to be a better investment than stock shares.
Shipping Containers Are Safer Investments Than Stocks
Because of the consistent demand for shipping containers as global transportation volumes increase, putting your money in shipping containers is actually a safer investment than putting it into stocks. While a stock may generate a return for you, a shipping container, once leased, will reliably produce cash flow on a regular basis and deliver a completely predictable return rate.
Shipping Containers Are In Their Growth Phase
All investments go through cycles of growth and stagnation. At the moment, shipping containers are in a growth phase that is being prolonged by massive increases in global shipping. For now, there is no end in sight to the shipping container investment boom, as demand continues to outstrip supply in the shipping container market. Stocks, on the other hand, are a different story. Most stocks these days represent largely mature companies with limited room to keep growing over the long haul. While the American stock market did experience an intense growth phase after last year’s tax cuts, the major indices have been largely flat for some time. Given that the American economy is due for a downturn sometime in the next few years, there likely won’t be much room for profit in the stock market in the near future. Shipping container, by contrast, continue to offer investors room for growth and greater profits.
You Are More Likely To Make Money With Shipping Containers
At the end of the day, all investors want to put their money into assets that are likely to produce the most favorable returns. In the comparison between stocks and shipping containers, it is more likely that you’ll turn a good profit on shipping containers. The reason for this is that generating a return from a shipping container is largely dependent on being able to lease it, while profiting from the stock market requires that the value of the shares you’re investing in actually go up over time as the companies continue to operate in a favorable market. With fewer variables to control and account for, shipping container investments are much easier to profit from.
Shipping Containers Are Much More Accessible
To make real money in the stock market, you need to start with a very large amount of investment capital up front. Typically, investors who want to see substantial annual income from their stock holdings need at least $250-300,000 to invest. Shipping containers, on the other hand, are much more accessible for retail investors with $50-100,000 worth of investment capital, and some investors have managed to get started with even less. Since there is currently a strong demand for shipping containers, investing in them is also a way in which a very large number of people can potentially make money.
Davenport Laroche is a leading shipping container investment agency based out of Hong Kong.