Playbook #014: Timberland
When the price of lumber skyrocketed after the economic shutdown of 2020, timberland investors did very well. Even though the market has cooled since then, there are still long and short-term opportunities to participate in this industry both directly and indirectly.
🖼️ The Big Picture
Over the last 20 years, returns from timberland have been almost equal to the S&P 500, with less than half the volatility. Plus, it’s an excellent hedge against inflation, as we’ve seen in the aftermath of the pandemic’s economic stimulus, with rising timber prices up as high as 288%.
What exactly does timberland look like? The two main assets are tree farms and managed natural forests.
You can buy it yourself, have a TIMO (Timber Investment Management Organization) help you with the purchase and management, or invest through a REIT or Timber ETFs for more liquidity and no “hands on” energy required.
