Sometimes I am asked is rubber a good business to get into:
Scenario 1 – Bank ( Interest 5%)
7 years investing 150,000 a year at 5% interest ( Total outlay 1,050,000 Baht )
Total Return 1,500,000
Then leave for another 5 years accumulating Interest
Total in 13 Years 1,900,000
Scenario 2 – Bank ( Interest 3%)
7 years investing 150,000 a year at 3% interest ( Total outlay 1,050,000 Baht )
Total Return 1,370,000
Then leave for another 5 years
Total in 13 Years 1,600,000
Trees Scenario 1 ( 50 Rai , 4000 trees Rubber 75 Baht a Kilo – outlay 1,000,000 Baht)
Wait 7 Years – Start Tapping Predicted Revenue a Year – 600,000 a year
After Another 5 years – Total Revenue after inital outlay – 2,000,000
Trees Scenario 2 ( 50 Rai , 4000 trees Rubber 35 Baht a Kilo – outlay 1,000,000 Baht)
Wait 7 Years – Start Tapping Predicted Revenue a Year – 250,000 a year
After Another 5 years – Total Revenue after inital outlay – 250,000
Since current rubber prices are Running below 30 Baht a Kilo , The conclusion would be to leave your money in the Bank . That is unless Rubber prices bounce back but even then it will still take at least 13 years to Break even instead of letting your money accumulate In Investments or a Bank
