Why Invest in Timberland?
There are lots of reasons to invest in timberland but I’d sum it up with these three reasons:
- It enjoys strong returns with low volatility.
- It’s a great hedge against inflation.
- Having it in your portfolio provides diversification.
Timberland is both a factory and a warehouse. When storing timber on the stump waiting for prices to increase, the timber continues to grow in size. Not so with stocks or gold. You do not grow more shares of stock or grow more ounces of gold while waiting for price increases. In addition to these three reasons, timberland is a tangible asset that you can enjoy and use for a homesite, camping, hunting, recreation and more!
Bob King has been in the land brokerage and forest management business for over 25 years. King has achieved the esteemed Accredited Land Consultant designation awarded by the Realtors Land Institute (RLI). Bob is currently the national instructor for the “Timberland Evaluation” course for RLI. In 2004, Bob was named “Land Broker of the Year” by the South Carolina RLI Chapter, and he was President of the South Carolina RLI Chapter in 2003, 2004 and 2007. We are pleased to have him as a contributor.