Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Re: Yale's Swenson on portfolios
Old 10-09-2006, 02:58 PM   #21
Thinks s/he gets paid by the post
saluki9's Avatar
 
Join Date: Feb 2005
Posts: 2,032
Re: Yale's Swenson on portfolios

Quote:
Originally Posted by Leonidas
I'm curious about the timber investment. Does this mean that Yale owns timberlands? Or, more to the point, if I want to invest in timber how do I go about that? I could buy shares in a wood products company like Weyerhaeuser, but other than owning the land or shares is there a way to invest in timber? It seems like an interesting way to diversify.
Most of the large endowments own the timberland itself which is the cleanest exposure you can get to the asset class. It is an interesting asset because you get the appreciation on the land (hopefully) along with your asset physically growingb 2-4% a year.

Most timber investments in the US are organized as limited partnerships and require minimum investments in the aread of $1M Timbervest is the only one that I have a hands on experience with. For smaller investors you can look into a company called Plum Creek Timber (PCL) Unlike other similar companies it is organized as a REIT. It pays around a 4% dividend and has done very well recently, so be careful about jumping in after everybody else has

__________________

__________________
saluki9 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Yale's Swenson on portfolios
Old 10-09-2006, 05:47 PM   #22
Thinks s/he gets paid by the post
Leonidas's Avatar
 
Join Date: May 2006
Location: Where the stars at night are big and bright
Posts: 2,847
Re: Yale's Swenson on portfolios

Quote:
Originally Posted by saluki9
Most timber investments in the US are organized as limited partnerships and require minimum investments in the aread of $1M Timbervest is the only one that I have a hands on experience with.
Thanks for the info - this is interesting and I think I will devote some time learning about this. There appears at least one, if not two, ways to get into Timbervest without ponying up one large one:

Quote:
Despite the difficulty, small investors have made modest inroads. Bart Valley, chief investment officer for financial-planning firm Abacus Planning Group in Columbia, S.C., invested about 15 clients in timber, some with investments as low as $50,000.

Valley wasn't keen on two publicly traded timber real-estate-investment trusts, Seattle-based Plum Creek Timber and Rayonier, based in Jacksonville, Fla., which generally are the only options small investors have.

"You are getting exposure to timber, but because it's publicly traded REITs, you are still taking on correlation to the stock market," Valley says.

Valley found Timbervest, an Atlanta-based firm that manages more than 500,000 acres of timberland with a market value in excess of $700 million.

Timbervest typically requires a minimum investment of $1 million. But with extra interest in timber, the firm this time allowed a pool of small investors working with wealth managers to get a piece of its new $250 million fund.
__________________

__________________
There is no pleasure in having nothing to do; the fun is having lots to do and not doing it. - Andrew Jackson
Leonidas is offline   Reply With Quote
Re: Yale's Swenson on portfolios
Old 10-09-2006, 06:03 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
Re: Yale's Swenson on portfolios

Quote:
Originally Posted by Leonidas
I'm curious about the timber investment. Does this mean that Yale owns timberlands? Or, more to the point, if I want to invest in timber how do I go about that? I could buy shares in a wood products company like Weyerhaeuser, but other than owning the land or shares is there a way to invest in timber? It seems like an interesting way to diversify.
Look at Plum Creek, structured as an REIT. I think Weyerhaeuser was considering doing the same think with their timber lands. Plum Creek spun out of Pope & Talbot, both corporate headquarters are in the same 'neighborhood', so to speak. When I looked at them a while back I found that they hold a lot of Maine realestate - didn't expect that. Lumber prices are driven by new home construction, and in the case of Plum Creek real estate development. This may not be the best time to buy.
__________________
Duck bjorn.
Brat is offline   Reply With Quote
Re: Yale's Swenson on portfolios
Old 10-09-2006, 06:52 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Posts: 1,375
Re: Yale's Swenson on portfolios

Rayonier (RYN) has been a steadier performer thean Plum Creek (PLC) as a timber REIT, and pays a higher dividend, too--5%.
__________________
You can't always get what you want, but if you try sometimes, you might find you get what you need.
astromeria is offline   Reply With Quote
Re: Yale's Swenson on portfolios
Old 10-09-2006, 10:04 PM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Brat's Avatar
 
Join Date: Feb 2004
Location: Portland, Oregon
Posts: 5,913
Re: Yale's Swenson on portfolios

No issue with Rayonier at all.

My comment about Plum Creek's real estate developer segment was cautionary.

Nothing beats looking at the annual report. Don't depend on the 'finder' tools to ID comprables.
__________________

__________________
Duck bjorn.
Brat is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Standard Portfolios and Options excellent Young Dreamers 13 11-07-2006 06:14 PM
contrarian portfolios? kevink FIRE and Money 9 11-22-2005 08:13 AM
Starting small with 2035 portfolios One4g Young Dreamers 3 01-18-2005 05:47 AM
Model Portfolios ats5g FIRE and Money 7 08-24-2004 10:03 AM

 

 
All times are GMT -6. The time now is 12:24 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.