I grew up next to a forest. I remember, as a child, hiking through the trees with our two golden retrievers in tow and, hilariously, panning for gold in the stream. I started with high hopes. I saw plenty of gold -- all fool's, alas.
Investors, too, have been hunting for riches in the forests -- and these days, they're also seeking shelter there. Market guru Jeremy Grantham, whose investment firm, GMO, has historically been bearish about stocks, keeps a large chunk of his personal portfolio in timber -- seeing it as a valuable defensive investment in a tumultuous market like this one. For similar reasons, Harvard University has invested in timberland for many years. And Boston financial-services giant John Hancock owns 5.3 million acres of timberland around the world on behalf of institutions and rich clients.
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