Daily Speculations
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Daily Speculations |
13-may-2006
A Study in Bamboo and Speculating, from Steve Leslie
There is much to be learned about speculating from the growth and characteristics of the bamboo. The similarities between bamboo and growth stocks are remarkable and the investor and speculator alike can dramatically improve their financial returns by studying the bamboo.
The largest of the grasses, there are over 1600 species of bamboo, 64 percent of which are native to Southeast Asia. Thirty-three percent grows in Latin America, and the rest in Africa and Oceania. In North America there are only three native species of bamboo as opposed to the 440 species native to Latin America Bamboo varies in height from dwarf, one foot (30 cm) plants to giant timber bamboos that can grow to over 100 feet (40 m). It grows in a lot of different climates, from jungles to high on mountainsides.
Bamboo is the fastest growing woody plant in the world (some species grow faster than others). Bamboos grow faster than other trees because of the rhizome system in them. The same plant will grow at a different rate and size in different conditions. Poor conditions result in smaller slower growth, but generally the bamboo still looks good. Feeding such bamboos will accelerate growth and size, if required.
The growth of Bamboos varies from species to species. The Bamboo tree devotes most of its energy to develop the rhizome system of roots in the initial years.
As a bamboo grove develops, the new culm (canes) become larger in diameter and the height increases in each NEW cane until the grove reaches maturity. The oldest culms are usually the smallest in size. The new culms, produced during the Spring of each successive year, will emerge larger than the previous year's growth, as a general rule. This is due to the increase in the underground system of rhizome or roots. [Read about Growing Habits of Bamboo]
The larger the plant you begin with, the larger the rhizome system and the faster it will begin to produce larger and numerous shoots (new Spring growth). You CAN NOT short cut the amount of time it takes a species to establish it's rhizome system. It is very important to realize that the bamboo division you begin with is only going to grow underground. The culms (cane) attached to the rhizomes or roots has finished growing and will only support the rhizome system. So do not expect the culm to take off and get larger or taller. Each Spring the culm emerges the diameter it will be and grows to the height it is going to be in a couple of months. You can begin with several bamboo divisions and this will increase the amount of bamboo you have each year. You can however establish a grove of bamboo with just one good division.
It takes bamboo about three full years, in the ground, before the mother plants really take off and start producing multiple shoots. The mother plant ( no matter what size that you begin with) is FINISHED GROWING IN DIAMETER AND HEIGHT, but the rhizome will grow outward underground. Bamboo is a (grass) colony plant and most of the bamboo grove will be underground. Each Spring, the new culms will begin to emerge larger in height and diameter than the previous Spring's growth, until the mature size of that species is reached after several years.