Similar to countries around the world, Australia has faced drought and these days it seems we have more than less. We have all heard about the cycles of life (Lion King) but is there things which could be done to lessen the drought? Recently an You Tube video popped up and it was good that it came. The previous post was about dirt, if you do not have water no crops will grow. The Mulloon Institute story of two men and a creek or river in Australia. They own land on the creek but it was eroding, the creek was prone to flash floods when it did rain and then long dry spells, similar to many farmers they were looking for a way to lessen the droughts.
One of the gentlemen, saw the land differently, he believed the earth held the water like a sponge and it slowly trickled back to the surface. With the creek, he believed if you could slow down the water, plant reeds and willows then the water would be retained and soak into the earth, allowing the fields to stay green or be planted and grow. His partner had the resources to try and it worked! The lands by the creek stayed green through the drought while the lands on adjoining properties went brown. Over the past few years, the Mulloon Institute has gone further down the creek or river and more farmers are reaping the benefits. If it can happen there, it can happen anywhere.
Recently read a book called Silent Spring by Rachel Carson published by the Houghton Mifflin Company, Boston, 1962. She writes about the ill effects of chemicals in our environment and in the US for a number of years there was a single determined effort to treat a pest or what is perceived to be a pest by chemicals without consideration of how nature would do it. In nature elements are interconnected, for example in both Australia and the US, Willow trees were sprayed to be killed. Willow trees have long roots systems which hold water in the soil, eliminate that and what do you put in? if nothing the streams will erode the banks faster. Now you have more problems than you started with. Working with nature helps solve problems with less money.
Linking to dividend paying stocks, it took a couple of visionaries – one that had a vision and one that could make the vision into reality. We all tend to think some form of change is better, but often looking at how the systems developed originally or how elements are connected will give a solution. In many ways, one solution to investing is investing in profitable stocks, that pay a dividend. If the profit is sustainable, then you will reap a dividend for a long time to come and be wealthier for your actions.
There are more questions than answers, till the next time – to raising questions.