Timber Investment

voucher_guy

I was wondering if anyone knows the best Timber investment companies to invest with.

There are companies like Timber Investor
who boast a return of 93k from a 18K investment over 10 years. Are these accurate and how safe are these investments?

thenudeone

If it sounds too good to be true, it probably is.

Past performance is not a guide to future returns. My house has doubled in value in the last 15 years (like everyone else's) but does that mean it will double again in the next 15 years? Of course not.

These boards are full of stories of people who have been duped out of their savings by one investment scheme or another. I use the word "duped" because the returns, security or protection are often exaggerated and the risks and downsides ignored.

Investing in Timber may be appropriate as a small part of a much larger portfolio of investments including cash, shares, funds, bonds, precious metals, and property, but the timescales are so long and therefore future prices are so uncertain, that I would consider it as a very risky investment.

Reaper

Well from a MoneyWeek article (2 years ago) returns have averaged 11%pa since 1972. Not bad.

However Timber Investor is going with a figure of 15% over the last 10 years on their web site, and the scheme you mention works out at roughly 20%pa.

Whether it is a good idea or not I can't really say, but the figures seem to be getting a bit inflated. If you are interested I would do some research first to understand why it has grown so well in the past and decide whether those reasons are likely to persist in the future.

le_loup

Yet another brand new poster asking a seemingly innocent question!
Am I a cynic?

purch

I know some pretty poor performing Timber companies to invest in.

Check out Cambian Global Timber (Investment Trust) :eek: