{"id":7752,"date":"2016-11-23T06:35:35","date_gmt":"2016-11-23T11:35:35","guid":{"rendered":"http:\/\/www.escapeartist.com\/?p=7752"},"modified":"2020-07-20T05:05:25","modified_gmt":"2020-07-20T09:05:25","slug":"your-parents-were-wrong-money-does-grow-on-trees","status":"publish","type":"post","link":"https:\/\/www.escapeartist.com\/blog\/your-parents-were-wrong-money-does-grow-on-trees\/","title":{"rendered":"Your Parents Were Wrong: Money Does Grow on Trees – Understanding Timberland"},"content":{"rendered":"
We\u2019ve all heard the old adage, \u201cMoney doesn\u2019t grow on trees.\u201d<\/em> I know I certainly heard it a few times as a child from my parents when I wanted a little cash to buy some frivolous thing. We\u2019ve all been more or less indoctrinated into the thinking that money doesn\u2019t grow on trees. The reality, however, is quite the opposite, investing in timberland that what you\u2019ve been taught is wrong, and that money really does grow on trees.<\/p>\n Timberland, or as we could potentially refer to them, \u201cmoney forests,\u201d are very real, and exist in our world today. And here\u2019s the best part; you can have your very own money trees. As crazy as it sounds, you yourself can easily (and affordably) become the proud owner of your very own plot of money trees. Timberland is an incredibly in-demand resource and one that can lead to incredible wealth and prosperity for those who act decisively and secure their stake.<\/p>\n <\/p>\n Timber is one of the best performing asset classes today. Historically, it\u2019s also one of the best performing asset classes of the past century. It has risen in value steadily but drastically with the world\u2019s growing population, beating out the S&P 500 since its inception last century. Timber is also an investment that has proven itself many times to be resistant to economic slowdowns. During the Great Depression, for example, stock prices dropped 70% while timber prices actually rose an astounding 233%. And once again, in America\u2019s most recent economic downturn, the Great Recession of 2008, the S&P 500 tanked by 38%, while timber actually gained 9.5%.<\/p>\n <\/p>\n This only makes sense. While other investments like stocks are inseparably connected with the markets, politics and the media, timberland knows of none of this. A bubble bursting or a scandal can have massive ripples throughout the economy, hindering the growth of most financial assets. Timberland isn\u2019t like this. Timber products are planted in the ground and will keep growing no matter what happens in the global markets.<\/p>\n <\/p>\n While the sorts of things that affect the growth of other investment classes don\u2019t affect the growth of timber, certain economic variables can affect the price of timber. However, these effects are to the benefit of timber owners. Timber prices have seen incredible growth over the past several decades<\/a>, with timber prices rising an average of 15% since 1987, and beating the S&P\u2019s average growth in that time of just 11%. Timber prices are also expected to grow even faster in the future, as the global supply of timber products falls while the demand rises.<\/p>\n <\/p>\n Timber is also one of the favorite safe havens of investment for some of the world\u2019s wealthiest families. The Irving Family has $400 million in timber investments, while the Pingree heirs have $240 million invested into the timber. Archie \u201cRed\u201d Emmerson, who made his fortune in forestry, beats out all of the others, with an amazing $1 billion invested in timberland.<\/p>\n <\/p>\nBut How Does Timberland Perform?<\/h3>\n
What Makes The Difference?<\/h3>\n