|
|
|
|
Looking for Money Growing on Trees? Try Timber.
(Note: companies that
could be impacted by the content of this article are listed at the base of the
story [desktop version]. This article uses third-party references to provide a
bullish, bearish, and balanced point of view; sources are listed after the
Balanced section.)
With growing interest in alternative and “sustainable” investments, forest products may warrant consideration. Commercial timberlands supply all major forest product end-use markets, including sawn wood, pulp and paper products, furniture, and flooring materials. While timberland ownership was consolidated among integrated forest products and paper companies such as Georgia-Pacific and International Paper up until the 1990s, when most began to divest their timberland holdings, ownership has transitioned to timberland investment management organizations that acquire and manage timberlands on behalf of institutional investors. With growing awareness of environmental considerations, many of these new investors have adopted sustainable practices, which include selective harvesting and replantation.