No debt. Debt does not increase risk-adjusted returns. This approach is helpful when other players are leveraged.
No dividends. A no dividend approach ensures that forest management decisions maximize value for shareholders through all market cycles. This policy preserves the option to keep trees on the stump when timber prices are low.
Very low overhead. Every 10bps of overhead can create a meaningful drag on returns. Overhead is a flavor of fees and lower fees mean higher returns.
Reinvest profits. As long as there are compelling opportunities for investment within the circle of competence, profits will be reinvested.
Hold cash strategically. As economic cycles rotate, the cash drag is significantly overtaken by the buying opportunity.
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