You might have heard of the so-called slow food movement.
It’s a strategy that encourages consumers to take the time to cook meals at home.
But the slow food movement has also spurred a new concept.
It’s called the slow money investing strategy.
The premise of the ‘slow money’ strategy is that investors should consider putting some of their assets into local businesses.
The belief behind the strategy is that consumers need to really rethink how they look at the growth of their investments.
Instead of measuring that growth by the flashing numbers on a stock ticker, it should be likened to a slow ripening.
Much of the slow money investing strategy focuses on investing in local farms.
An example is farmer Martin Ping of New York.
He lets customers invest in certain projects, such as a cheese processing plant.
In exchange, customers can expect a return of around 3%.
They also get a source of fresh cheese, not to mention the good feeling that comes from knowing they’re helping a local business.
Despite this idealism, there’s plenty to be wary of when it comes to the slow money investing strategy.
Spending money to buy food at a farmers’ market is one thing, but putting your retirement money into a cheese processing plant is another.
Most investors don’t have the skills, time or interest level necessary to evaluate the soundness of a local business.
As a result, regional funds have been created in many communities to broker the interaction between investors and local businesses.
However, it’s still advisable to be wary of such investments.