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re: Guide To Beginning A Portfolio of Blue Chips

Posted on 12/3/13 at 3:13 pm to
Posted by Zach
Gizmonic Institute
Member since May 2005
112772 posts
Posted on 12/3/13 at 3:13 pm to
quote:

Do you know any more about timber investing? It's something I've considered as part of a portfolio


Nope, just that you have to live near the land because people will steal trees. North La. is great pine country.

Posted by oR33Do
Tuscaloosa
Member since Oct 2012
13561 posts
Posted on 12/3/13 at 8:18 pm to
Pine is very profitable when you own 100+ acres and sell in 20 acre lots per year.

It also has other revenue streams, such as selling the pine needles from the yearly shed, as they are used for mulch and you can make upwards of $30,000 in a 3 month span off 60-80 acres.


In the timber industry, right now I'd be looking at ways to invest into side markets for the Hardwood market. Cut Hardwood lumber is currently pushing market highs and it is expected to have a 30-50% market growth. There is a Hardwood Flooring Mill in Tennesee that is currently buying up a large part of the Southern market Red/White Oak which has drove prices for FAS/1 common / 2&3A graded cut lumber up to current record highs. Most of this ends up being exported to foreign countries for resale.

Best way to explain this is Currently Southern Market Red Oak FAS is a little over $1100 per 1000 sq feet, 4 months ago it was pushing only $975-980. Most outboard sawmills are stockpiling Oak Trees for post winter cuts to see how high the prices go, or if demand will fade.


Sorry if this is a little much to comprehend or TMI, I work in the industry.

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