George Nichols

Adding Wood to Your Portolio: A Worthwhile Investment

Professor Enke, thanks again for your writeup on my timber article! I'm glad it was worthwhile reading. :)

Thanks, Rudi. What were the start/finish dates for your correlation period? Regarding your question, historical lumber prices are available, but my correlations were based on the NCREIF Timberland Index. It reports returns of selected TIMOs (timber investment management organizations) on a quarterly basis.

Xmplary, interesting point. There are certainly environmental and aesthetic ramifications to consider. Just from a carbon standpoint, I'm told harvested trees may release *some* carbon back into the atmosphere (versus all of it from naturally decaying deadwood). And, as the other poster noted, areas harvested by timber managers are almost always replanted, which creates future carbon sinks.

On a related note, carbon credits are starting to make up a small, but significant, portion of investment returns for a few timber managers.

- George