Timberland Investment

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Dictionary Says

Definition of 'Timberland Investment'

An investment instrument used primarily by large institutional investors (such as public and private pension funds). The two main assets that underlie timberland investments are tree farms and managed natural forests. The returns on these forestland investments come from biological growth, upward product class movement, timber price appreciation and land price appreciation.
Investopedia Says

Investopedia explains 'Timberland Investment'

The benefits of timberland investments arise from the tendency for the investments to be negatively correlated with other investment instruments such as stocks and bonds. This negative correlation allows timberlands to be used to diversify a portfolio. Timberland investments also provide relatively high returns for the low risk they carry.

However, timberland investments are not perfect investments; they are still open to risks such as high purchase prices that can depress returns, natural disasters that can destroy the forestland underlying the investment and price risks associated with the price of the trees on the land.
Search results for

'Timberland Investment'

  • Timber Investments Cut Down Portfolio Risk

    http://www.investopedia.com/articles/stocks/08/timber-investment.asp
    ... One of the most compelling reasons for including timberland investment in any
    investment portfolio is the ability to enhance risk/return characteristics. ...

  • Money Grows On Trees

    http://stocks.investopedia.com/stock-analysis/2010/Money-Grows-On-Trees-CUT-WOOD-PCH-PCL1117.aspx
    ... can grow up to 7% annually, allowing investors to wait for higher prices and still
    'grow" their investment. In addition, many public timberland stocks are ...

  • Rayonier To Invest In Forest Resources

    http://stocks.investopedia.com/stock-analysis/2011/Rayonier-To-Invest-In-Forest-Resources-RYN-PCH-WY-MWV1026.aspx
    ... Rayonier (NYSE:RYN) will selectively add to its core timberland holdings
    and continue to optimize the yield on these assets. The ...

  • VF Corp Laces Up Timberland

    http://stocks.investopedia.com/stock-analysis/2011/VF-Corp-Laces-Up-Timberland-VFC-TBL-PSS-BWS-SKX-KSWS-WMT0613.aspx
    ... deal, this is still a cheap market for corporate debt and Timberland's likely returns ...
    an equity analyst for both sell-side and buy-side investment companies in ...

  • Finding Value In The Forest

    http://stocks.investopedia.com/stock-analysis/2011/Finding-Value-In-The-Forest-WY-UFS-SNOFF-DEL0510.aspx
    ... The National Council of Real Estate Investment Fiduciaries Timberland Index has
    generated an average annual return of 14% compared to 9.4% for the S&P 500 ...

  • Rayonier Loves Fibers And Trees

    http://stocks.investopedia.com/stock-analysis/2011/Rayonier-Loves-Fibers-And-Trees-RYN-PCL-IRET-WY1019.aspx
    ... umbrella partnership real estate investment trust (UPREIT), with the company's business
    operations split between two subsidiaries. The timberland business is ...

  • Plum Creek Timber Is Still A Little Warped

    http://stocks.investopedia.com/stock-analysis/2011/Plum-Creek-Timber-Is-Still-A-Little-Warped-PCL-RYN-WY-UFPI-LPX-RKT-PKG0730.aspx
    ... Timberland may be a great investment class, but it does not automatically follow
    that Plum Creek Timber (NYSE:PCL) is a great investment at any and all times. ...

  • Deltic Timber: A Housing And Energy Play

    http://stocks.investopedia.com/stock-analysis/2010/Deltic-Timber-A-Housing-And-Energy-Play-DEL-MUR-SWN-CHK0429.aspx
    ... Deltic Timber (NYSE:DEL) is a land company with hundreds of thousands of acres of
    timberland that may see benefits from a rebound in housing, and the push for ...

  • Forestry Looks For Other Ways To Grow

    http://stocks.investopedia.com/stock-analysis/2011/Forestry-Looks-For-Other-Ways-To-Grow-WOOD-RYN-RTK-UFS-SPP-IP0907.aspx
    ... From 1987 to 2009, The National Council of Real Estate Investment Fiduciaries
    Timberland Index has generated an average annual return of 14% compared to 9.4 ...

  • Forestry Focuses On High-Tech Growth

    http://stocks.investopedia.com/stock-analysis/2011/Forestry-Focuses-On-High-Tech-Growth-KO-CUT-ABI-IP0927.aspx
    ... From 1987 to 2009, The National Council of Real Estate Investment Fiduciaries
    Timberland Index has generated an average annual return of 14% compared to 9.4 ...

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