Here are deeper insights on the value of investing in wood and why some of the top managers are now holding 20% of their wealth in forest investments.
Dear International Friend,
Our recent articles on investing in wood shows that timber has always made sense in troubled times. Such investments can range from holding shares of timber companies to buying land with timber reserves to investing in teak plantations in Ecuador. The upside of timber is that wood is a valuable commodity and as inventory it grows in value regardless of economic conditions. The downside is that timber investment are long term.
Timber is also an excellent inflation fighting investment, so I am inserting this message amidst the numerous reviews of bonds we are making now. Our dilemma as investors is that we falling interest rates a weak stock market. The normal answer would be to invest in bonds, but the war and terrorism make inflation a real threat. Thus timber makes sense as an inflation hedge to balance a portfolio of bonds.
The article sent by an alert reader is extremely informative about investing in timber now.
Merri and I are headed for Ecuador to look at a teak plantation and will report on our return.
Until next message, good global investing!