The Race Continues: Economic Growth vs. An Economic Tantrum – Week 7

Factors that Make Timberland an Attractive Asset:

2. “Under all is the land”:

Land is a separate asset apart from the timber that might be growing on it. The “highest and best use” of a tract of land may change over time and has a separate value from the timber. The type and amount of timber does have influence on the land value.

But a timberland investment offers its owner the opportunity to enjoy an asset that increases in volume yearly, can be harvested periodically, and properly located a tract of land that can enjoy a significant increase in value if the use is changed in the future.

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.