Investing in Timberland?
In the past two months we have seen high volatility in the market. For our clients who currently own timberland investments and our clients that are looking at possibly investing in timberland, below are a couple things to note:
1. The rate that timberland appreciates in comparison to stocks and bonds
A survey conducted by Brooks Mendell, found that over the past thirty years an investment of timberland in Q1 of 1990 would yield a 36% higher return than the same investment in Q1 1990 in the S&P 500 over the same time period.
Performance of Private Timberlands Relative to Stocks and Bonds
2. Timberland is more than meets the eye
Many timberland investors are in it to diversify their portfolio. What isn’t often known about timberland is that it serves multiple markets. Forisk’s blog article, Timberland in Turbulent Times, points out that these markets are often countercyclical and include hardwood, softwood and pulpwood, along with non-timber markets such as recreation, minerals, billboards and cell towers.
If you have any questions, give us a call and we will be happy to assist you.
*Mendell, Brooks. "Timberland in Turbulent Times." Forisk.com, 13 Apr. 2020, forisk.com/blog/2020/04/13/timberland-in-turbulent-times/. Accessed 26 May 2020.