aiywqexr47
12-08-2015,
Given that the second word in the title of these forums is Traders as opposed to Investors it is not surprising much of what is posted here are short run ideas including day trades, swing trades, and momentum plays.
For those of you with a longer-term investment horizon you may want to consider adding exposure to timber to your portfolio for inflation protection and real growth at about the long-run pace of the global economy. Some of the greatest investors in the business are the former and current managers of Harvard & Yale's endowments - Meyer and Swenson respectively. Here is an excerpt from Yale's 2006 report. Note the endowment has over a quarter of its investments in real assets and one of the largest allocations to timberland in the industry (and the top annual performance over the last 20 years to boot).
http://www.yale.edu/investments/Yale_Endowment_06.pdf
Yale Endowment report said:
Real Assets- Real estate, oil and gas, and timberland share common characteristics:
sensitivity to inflationary forces, high and visible current cash flow, and opportunity to exploit ine?ciencies. Real assets investments provide attractive return prospects, excellent portfolio diversification, and a hedge against unanticipated inflation. Yale’s 27.0 percent long-term policy allocation significantly exceeds the average endowment’s commitment of 8.4 percent. Expected real returns are 6.0 percent with risk of 15.0 percent.
http://www.nytimes.com/2011/09/29/business/yale-endowment-posts-return-of-21-9.html?_r=1
Now granted Harvard and Yale are likely making direct investments in timberland as Harvard Mgmt Company bought 10,000,000 acres in New Zealand under Meyer. In my view this does not preclude smaller investors from gaining access to this asset class. Below are a few options if one was so inclined to obtain exposure to timber for the long haul.
For those of you with a longer-term investment horizon you may want to consider adding exposure to timber to your portfolio for inflation protection and real growth at about the long-run pace of the global economy. Some of the greatest investors in the business are the former and current managers of Harvard & Yale's endowments - Meyer and Swenson respectively. Here is an excerpt from Yale's 2006 report. Note the endowment has over a quarter of its investments in real assets and one of the largest allocations to timberland in the industry (and the top annual performance over the last 20 years to boot).
http://www.yale.edu/investments/Yale_Endowment_06.pdf
Yale Endowment report said:
Real Assets- Real estate, oil and gas, and timberland share common characteristics:
sensitivity to inflationary forces, high and visible current cash flow, and opportunity to exploit ine?ciencies. Real assets investments provide attractive return prospects, excellent portfolio diversification, and a hedge against unanticipated inflation. Yale’s 27.0 percent long-term policy allocation significantly exceeds the average endowment’s commitment of 8.4 percent. Expected real returns are 6.0 percent with risk of 15.0 percent.
http://www.nytimes.com/2011/09/29/business/yale-endowment-posts-return-of-21-9.html?_r=1
Now granted Harvard and Yale are likely making direct investments in timberland as Harvard Mgmt Company bought 10,000,000 acres in New Zealand under Meyer. In my view this does not preclude smaller investors from gaining access to this asset class. Below are a few options if one was so inclined to obtain exposure to timber for the long haul.