A timber baron

There's something about trees; and something attractive about being able to touch, taste₁, and smell my investment. While thinking about non-traditional investments₂ the thought of timber came up. Sure sure, the idea of being a baron hearkens to the good ole days of capitalism during the turn of the century. You know, when a couple rich folks controlled huge population sections of our country. They set living standards, manipulated others actions, and even told them how to spend their free time (at a baron owned attraction naturally!). Not a pleasant experience for most in our country; nor one that should be repeated. Indeed, I think capitalism's best years are still ahead of it. A time when it's true vision of free markets, independent people and ideas, will be more fully realized. It will (as things always seem to) come of necessity and not by active choice.

As for the trees, they represent an investment into raw land. Growing trees for a paperless world! I think there will always be some demand for wood, especially slow growing dense wood. Have you seen those Japanese coffee tables? The earth's old growth forests have long since been logged. It saddens me thinking of all the wasteful practices that have led us to this state of affairs. Still it represents a *possible* investment opportunity. A list of reasons for investing include:

1) Good quality hardwood is expensive
2) Timber is a long-term investment (read risk!)
3) Land is a finite resource and *hopefully* will always be > 0
4) Trees don't need constant attention, so this can be a more passive investment
5) Finally, I want to own some land

The reasons not to invest can be just as numerous. Ongoing costs and liabilities of physical ownership, potential disaster risk (disease, drought, storm, fire, etc), and lack of ROI.

So while I am still on the fence (a wooden fence) about investing or not the broader idea of land ownership does spark more ideas than just timber. Anyone wanna buy some rental houses? Beachfront speculation property? How about farmland? All of these have the potential for being a good investment because they could all yield income without losing their principal value.

1. I won't be eating the leaves or bark, but maple syrup is GOOD!
2. Now I sound like a CFP!