Alvin Fan – Forests Are a Treasure. However, Are They Good Investments?

Alvin Fan is the Chief Executive Officer of OP Investment Management, one of Asia’s leading hedge fund platforms focusing on emerging managers.  Part of the Oriental Patron Financial Group running assets of over USD 10 billion primarily in private equity, OPIM separately partners with emerging hedge fund managers with assets collectively more than $750 million across 25 managers.  Having worked in Asia since 2000, Alvin has over 15-years’ experience in Strategy and Investment Management - from Private Equity to Publicly Listed Funds overseeing assets across Asia & Eastern Europe.  Enjoys working with entrepreneurs and growing fund managers across Asia.  He is forever a student of business strategy, innovations, and the pursuit of greatness.   In today’s episode, Alvin Fan shares the story of the teak timberland investment in Costa Rica that he was pursuing. Based on his investment thesis, teak falls to the ‘good investment’ metric- are real assets, nationally appreciate over time, exponential rate or return. But the returns are just one side of the performance coin, on the other side are other risks like country risk, marketability and the tedious work involved in monitoring and management of the plot lands where the teak are planted. Listen from his story and learn about the specific risks involved when considering investing in timberland and know what you need to do to avoid doing same mistakes Alvin did.   “Every mistake is a golden opportunity to learn. And the value of that lesson is immeasurable. It really does pay forward.” - Alvin Fan     What do you want to hear from the My Worst Investment Ever Podcast? Tell us here! Resources:  My Worst Investment Ever Book myworstinvestmentever.com Unconventional Success: A Fundamental Approach to Personal Investment   Topics Covered: 00:54 – Alvin Fan’s professional and investment background 07:57 – Sharing his teak timberland investment in Costa Rica, the projection of its high-yielding return 11:04 – This timberland investment checked off all the ‘good investment’ metrics, are real assets, nationally appreciate over time, exponential rate or return 11:53 – The different risks he and his team had to go through every time that they needed to do their due diligence 13:25 – What’s in their pitch book they present to the Asian investors 15:08 – Thoughts of his two uncles who are known as the grandfathers of the private equity industry in Asia about his timberland investment 16:21 – Importance of due diligence and due diligence follow-ups in this type of private equity direct investments and the accountability that is needed to answer the different questions from the investors 23:28 – Andrew’s takeaways from Alvin’s experience 27:14 – Alvin’s investment advice to listeners: At the end of the day, investing is a serial condition. Just as is being an entrepreneur. It means that you just keep going. And at some point, it will get better. Just make sure that...