Sunday, July 25

KKR

Arbitrage, Arcata, Berkshire Hathaway, KKR, Lumber, lumber price, m&a, Markets, MI Exclusive, Stocks, Warren Buffett, Weekend BI UK, wood products

Lumber prices are on a roller coaster. They might remind Warren Buffett of the time he doubled his money on a timber company

Warren Buffett. REUTERS Lumber prices have skyrocketed and plunged in the past 18 months due to the pandemic. Warren Buffett once doubled his money with a clever bet on Arcata, a timber company. The investor pocketed $22 million after the US government settled a dispute over a redwood forest. See more stories on Insider's business page. The pandemic has had a dramatic impact on lumber prices, dragging futures below $300 per thousand board feet in April 2020, then lifting them as high as $1,700 this May. Warren Buffett could well be having flashbacks to the time he doubled his money on a deal involving a redwood forest.The billionaire investor and Berkshire Hathaway CEO described his Arcata bet as one of his "more serendipitous arbitrage experiences" in his 1988 letter to Berkshir...