10+1 reasons why you should invest in agriculture – with UBM interesting facts
Agriculture is a long-established, traditional sector that is as indispensable in today’s world as it was several hundreds of years ago. The sector has huge potential as it has to meet an ever-increasing demand. The successful agri-businesses are able to combine traditional professional values with innovative approaches and trends that allow for dynamic development. The outstandingly crisis-resilient agricultural stocks certainly deserve attention from investors and can be a useful pillar of a carefully constructed portfolio.
With the help of András Uzsoki, one of the founding owners of UBM Group, we have put together 10+1 reasons why investing in agriculture is worthwhile:
- Agriculture is a key strategic sector, which is essential for food safety and food supply. Sustainable, efficient and quality food industry is an evergreen business. It is always worth getting involved with the right professional and financial backing.
- Agriculture and the food industry as a whole, as an investment linked to primary consumption, can yield favourable results in the long term. “People will always eat,” food will always be needed, and consequently the stability of related stocks is extremely high.
- As a result, the crisis resistance of the commodity exchange products is very good, so in times of economic uncertainty and crisis, any investment related to the food industry product chain can be a favourable choice. From an investor’s point of view, the importance of wheat even surpasses gold as a ‘safe haven’. Agricultural stocks can therefore be an important element of a balanced portfolio.
- The industry is experiencing a steady increase in demand due to the growth of population, so there is increasing demand globally and the market is growing dynamically.
- Hungary is also a major producer of food and feed raw materials at European level, so there is a wealth of opportunities in these areas.
- Hungarian agriculture has always been of major importance for the national economy.
- Livestock farming activities in the European Union are expected to shift increasingly towards the Eastern region over the next 5-10 years, so the importance of the sector in Hungary could increase significantly in the near future.
- The market players in the agricultural sector are typically long-established, stable and well-capitalised companies with secure financing possibilities.
- The criteria by which investments are usually assessed are time horizon, risks, material assets and the amount of money that we would invest. Risks must be taken into account by all means, especially in the current dynamically changing economic and political environment, which is also shaping the movements of commodity and financial markets. The agri-food industry value chain should therefore be expected to appreciate in the short, medium and long term alike.
- If as an investor you want to diversify your risk, it makes sense to choose a sector that is important in all related business lines at the same time, as the likelihood of all businesses experiencing a downturn at the same time is minimal.
- The implication is that by investing in feed industry stocks, one can take advantage of the potential for growing demand in the food industry while balancing out the periodical effects.
Did you know? Some interesting facts about the UBM Group and UBM stocks:
- UBM Group is the only agricultural player listed on the stock exchange in Hungary.
- With 25 years of stable presence and high level of professionalism, the company has a strong market position both in Hungary and in the Central and Eastern European region.
- The UBM Group has been developing dynamically since its beginnings, with a clear and coherent strategy. Its operation is characterised by a future-oriented, innovative approach. Over the past three years, despite the difficulties at global level, it has achieved unprecedented growth.
- It is transparent and has strong banking relations.
- The company is led by a young, skilled management team and the group employs excellent professionals.
- Reliability and contractual discipline are key factors in the success of the UBM Group, both internationally and domestically. The company has a very strong fiduciary capital, which is an important aspect of futures trading.
- UBM is able to respond efficiently, quickly and flexibly to challenges and rapidly changing market demands. This is partly due to decades of experience and partly to a geographically extensive network of partners.
- UBM stocks are now available also to small investors.
- Investors tend to look for stocks that are stable or have strong growth potential. UBM follows the principles of sustainability, is innovative in its operations and has a high professional standard. Its steady growth, based on close to 30 years of experience and a clear strategy, is proof of its resilience to crises and has made it a regionally unrivalled player in the agricultural sector.
- The UBM Group, also in terms of its structure, has always been characterised by a multi-legged approach through synergies between its business lines.
- UBM is a recognised player in the agribusiness sector also in Europe.
If you have any questions, please do not hesitate to contact us at firstname.lastname@example.org.