Definition Timberland investment

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Timberland investment

Timberland investments are specifically investments in tree farms and managed natural forests. The return on these investments come from timber as well as land price appreciation.

Timberland investments are typically done by large institutions to diversify a portfolio. While timberland investment have a good potential for returns they also carry the risk of high purchase price (land), price risk from timber values as well as natural disasters.

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