Timberland investment has gained substantial attention in the last several decades. The benefits that timberlands offer to investors are well documented and have been realized by an increasing following of financiers.
One of the most acknowledged benefits of timber investment is that of portfolio diversification and risk mitigation. The timberland asset class benefits investors by hedging against volatility, which can be more common in traditional markets, and also shelters well against inflation. In general, timberland provides access to multiple markets (timber and real estate) and is a tangible asset that can be considered a relatively low risk investment venture.
