Replies to post #4401 on The Rising Influence of Rising Affluence

[DewDiligence]

Why Jeremy Grantham likes timber:

The glorious thing about trees is it rains, the sun shines, they grow. If, when they are fully grown, the demand for lumber is weak, you don't cut, and they get bigger and more valuable. Come back in three years when the housing market has recovered, and you have an even bigger tree. Everything else has a negative-inventory cost.

The above—deferring cutting to some degree—is exactly what PCL has been doing for the past couple of years.

Grantham is also partial to agriculture and natural-resources plays, even NG (http://online.barrons.com/article/SB50001424052748703754104577239201748436284.html ).

[DewDiligence]

I sold APD and added to PCL today. More to follow on PCL’s (meaningless) quarterly results, which allowed me a better entry point.