The article talks about how forestry investment can be a great way to shelter money in more volatile economic times. He explained that timberlands have been a favorite among wealthy investors for years, as a result of its strong returns and lower risk, and the asset class is now within reach of all investors thanks to new direct investment opportunities. Forestry Research Associates, a research and analysis consultancy, said that timberland investments were typically available through funds where minimum investments would often run into hundreds of thousands of dollars. Now, through firms such as greenhood management, people can invest as little as $15,000 in a section of forest plantation land in Brazil, Canada or even Costa Rica. These kinds of investment opportunities allow investors to see returns within just a few years, rather than having to wait for trees to grow and reach maturity as all the money is ploughed into the sustainable model that delivers regular returns.Several larger funds are now putting more of their portfolio into forestry. The SmartMoney article cites Harvard University as a major investor in timberland. The author also claims that Jeremy Grantham, who runs investment firm GMO, has a large amount of his personal portfolio invested in timber. He reportedly once said that timber "has had a history of rising in all great equity bear markets,” adding that the asset is “very safe: If the sun shines and it rains, the trees grow about on schedule."“Grantham is absolutely right on this,” claimed Forestry Research Associates analysis partner, Peter Collins. He added, “Forestry’s low correlation with other assets means that it can withstand slumps that other asset classes simply will not survive, therefore offering a safe haven for money during volatile times.”
