The Race Continues: Economic Growth vs. An Economic Tantrum – Week 10

Factors that Make Timberland an Attractive Asset:

5. Timberland is a Fairly Stable Asset:

Timberland does not have the wild “ups and downs” of the stock market. That is why pension funds and insurance companies like timberland investments. Timberland is more like high grade bonds as a long-term investment over ten years or more.

Both timberland and timberland investments have good up-side potential if you catch the markets right. Over the long haul, the return can be quite attractive because the trees keep growing if they are managed properly. In many cases a single property has funded college educations or retirement.

In these uncertain times, it is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.