Comments on: Timber Agg 2:How to invest in timber

By: MikeW

MikeW — Sat, 15 Nov 2008 22:27:18 +0000

Very well reasoned, thanks for the write-up. I, like many others I suspect, have read about this for a number of years. Partly brought to the forefront as a result of Harvard’s spotlight for their portfolio performance I suspect.

In regards to POPE as an MLP they are required to distribute 90% of their earnings, and their yield right now is 8.5%. Seems like a nice yield, similar to KMP and other energy MLP’s. But like the energy MLP’s the general partner would likely have incentive distributions that increase at certain levels. It would be worth checking out what they are rewarding themselves. The tax implications don’t scare me, my accountant noted it was simply plugging some more numbers into the computer and out pops the forms. In fact, like energy MLP’s there may be some significant tax benefits with the distributions of 8% having different tax consequences and much of it not being taxed. That said, it’s a micro-cap so it’s a much riskier investment than PCL would be I guess.

Thanks, great read.

By: Drizzt

Drizzt — Sat, 02 Aug 2008 23:42:36 +0000

The problem is that it is difficult to directly invest in timber and not have the cost of operation be part of it.

It is the difficulty in finding a pure product that makes it difficult as investors to find a good vehicle to play into this.

Trees do grow in size but they do decay and die as well haha.

By: Philip

Philip — Sat, 02 Aug 2008 14:39:45 +0000

Well beside having to invest in timber stocks and bonds you can also do live investment on planting real valuable trees…As you said it “One things that timber has and other assets dont….Trees grow…in size which means more yield and value” what do you think of this?

By: TheFinance.sg » Timber Investing

TheFinance.sg » Timber Investing — Mon, 07 Jul 2008 13:06:42 +0000

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