IS IT WARREN-BUFFETT TIME IN TIMBERLAND INVESTING?
According to Forbes 400, 2002 Edition, Warren Buffett is the second richest person in the world at $36 billion. He made it all by investing in businesses he understands. As he put it, “We embraced the 21st century by entering such cutting edge industries as brick, carpet, insulation and paint. Try to control your excitement.” He explained in a recent TV interview that, in investment, it is very important to avoid overpaying. He invested no funds during the stock-market bubble. Now, however, Forbes reports that he is “picking through scraps of fallen energy giants: $900 million to Dynergy for gas pipelines, helped pump $2 billion into troubled Williams Co., said to be looking for bargains among Enron’s assets.” We suggest that what will turn out to be bargains are beginning to appear in investment timberland. Chuck Slaybaugh suggested that pulpwood prices are not likely to recover until more mills are closed to reduce the capacity glut in papermaking. Jack Lutz’s graph at http://www.cin
