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Protect Your Portfolio Look beneath the surface of the so-called recovery and you'll see enough trouble brewing to make the subprime market meltdown of 2008 "look like a walk in the park." More...WSJ: One Federal Reserve member just reported that commercial real estate losses could reach 45% this year. That means $1.54 trillion in commercial loans could default, sinking the markets and plunging the economy back into recession. Dear Fellow
Investor, But you ought to.... WHY TIMBERLAND? Timber beats stocks. Managed timber (as the professional investors call it) has actually beaten the stock market - with less risk - over the long run. From 1989-2002, managed timber returned roughly 15% annually as an investment, while stocks returned about 11%. Timber is uncorrelated to stocks. Trees don't know about the subprime crisis, or geopolitical turmoil around the world. While stocks couldn't keep up with inflation in the 1970s, timber investments never had a losing year! Trees just keep growing year after year. So investing in timberland is an excellent way to balance your portfolio as its value rises even when stocks are falling. The price of timber has consistently beaten inflation. Think of your timber investment as a good inflation hedge-the numbers show that to be true. According to legendary investor Jeremy Grantham, over the last century, timber prices have risen at 3.3% above the rate of inflation. Add 5% a year in income, and you've got a timber investment asset that has returned double digits, competing with stocks over the long run. Who Owns Timberland and Why? The majority of timberland (71%) is privately owned. And
most active investments are facilitated through TIMOs (timberland
investment management organizations). TIMOs cater to the "smart money" - institutional investors
such as the Harvard Endowment, CALPERs and anyone else that can afford the
stiff $5 million entry fee. In recent decades, this "smart money" has been
quietly piling into the woods... Rest assured, these institutions aren't simply chasing
performance. They're attracted to timberland for two equally important
reasons:
It's the second point that makes timberland a timely
investment.
Should the stock and bond markets slump, timberland should
perform well. And this time around, the out-performance could
be significant. What others say about Forestry and Timber investing.. Average annual returns on timber . . . have outstripped those from leading global stock indices, property, oil and gold for the past decade. 
The UN Food and Agriculture Organisation predict world consumption of industrial wood will rise 60% over the next 25 years.  New figures show the Investment Property Databank UK forestry index returned 32 per cent in 2007, five times higher than equities and bonds and in sharp contrast to the fall in commercial property. Forestry funds leave others in the shade.  The track record of early investors - and a slew of recent academic research - indicate that timber is a near-perfect asset...  Energy, grains and Timber; The 3 best performing commodities over the next 10 years. 
Timber is the only Low-Risk High Return asset there
is - Timber has risen steadily in price for 200 years - Timber is
the only asset class that has risen in 3 out of 4 market collapses of the
20th century. We are only thinking of the
future: From the sowing to the harvest after two
years, we have developed a well-engineered forestry economy concept which
controls and defines ecological and economical interests during the entire
wood production process. The forests in which our wood grows are diverse
ecosystems with numerous functions and valuable riches. Our trees live in
the forest along with other organisms which give the forest economical
meaning over and above the value of the wood. Conservation of the environment and economy do not have to be opposites. With this report I wish to introduce to you the philosophy and sustainable concept behind our company. I wish you informative reading and should be delighted if you were to choose to join us as a landowner/investor. Learn about the quiet, boring asset class that has been making large institutional investors rich for years. Complete details will be emailed
promptly.
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