Volume 14, No. 1 January 2021
Strategic & Financial Arguments (TM)
for the pulp and paper industry worldwide
Participating as industry experts in pulp and paper financing and M & A deals around the world for nearly three decades, we continue to see the same mistakes made over and over. This newsletter is designed to help you avoid costly mistakes we have seen others make. We will be giving you one or two points each month to help improve your performance.
A suggestion for preparing for inflation

Many of you are too young to remember the inflation of the late 1970's and early 1980', but I do. At that time, I had invested in apartment buildings, which was a great place to be then. 2020 has taught us being a landlord may not be the best place to be (rent moratoriums), but that does not mean tangible assets are out.

Inflation may be just around the corner. I say this because it seems like we are in unchartered waters when it comes to monetary policy, not only in the US, but internationally.

My preference at this time is direct ownership of timberland, or if not that, timber REITS. Timber only grows in value, and, with the idea of building large wooden structures to facilitate carbon capture, it only becomes more attractive. Timber's downside, of course, is that you cannot insure it against fire, theft and weather. Choose carefully, however, and those risks are small.

However, personally, I will not be participating, as I do not own any assets (unless buried deep in a mutual fund or annuity) that would taint my off the cuff opinions here, be they timber, pulp, papermaking or converting.
If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com or jim.thompson@ipulpmedia.com. We are here to help.