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Forestry Investment News
Experts recommend investing in trees
23/02/2009
Farmers in New Zealand have reportedly caught on to the investment potential held in forestry and are increasingly using their land to plant trees.
According to MoneyWeek website, New Zealand is becoming a centre for farmers who simply plant trees on cheap land, watch them grow, and cut them down to sell the timber when they want to retire.
MoneyWeek points out that lumber has produced returns on investment of 11% since 1972. This means that a lumber investment of $100,000 in 1972 would be worth $4.3 million today. Growing trees is not affected by seasonal harvests and the economic variable that impact this type of farming. Wood has also outperformed many other asset classes in recent years.
MoneyWeek says that, like gold, timber often generates more value during periods when stocks and bonds fall in value and are therefore a good way to add diversity to an investment portfolio.
Investors are quickly catching on to the profit potential in timber investment with Harvard Management Company, which manages the endowment for Harvard University, investing in timberland in 2008.
Now is a great time to invest in timberland and forestry as prices remain low, despite great growth potential − with an imminent boom in infrastructure and its strong long-term return on investment performance.
According to MoneyWeek website, New Zealand is becoming a centre for farmers who simply plant trees on cheap land, watch them grow, and cut them down to sell the timber when they want to retire.
MoneyWeek points out that lumber has produced returns on investment of 11% since 1972. This means that a lumber investment of $100,000 in 1972 would be worth $4.3 million today. Growing trees is not affected by seasonal harvests and the economic variable that impact this type of farming. Wood has also outperformed many other asset classes in recent years.
MoneyWeek says that, like gold, timber often generates more value during periods when stocks and bonds fall in value and are therefore a good way to add diversity to an investment portfolio.
Investors are quickly catching on to the profit potential in timber investment with Harvard Management Company, which manages the endowment for Harvard University, investing in timberland in 2008.
Now is a great time to invest in timberland and forestry as prices remain low, despite great growth potential − with an imminent boom in infrastructure and its strong long-term return on investment performance.
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