Warren, What The Heck Is An Asset?
Investing Series — Article #2
In the first article of this series, we explained that investing is putting your money to work.
(Investing Series – Article #1)
A productive way to put your money to work is to buy assets.
So, what is an asset exactly?
An asset is something you can own that is valuable (i.e. it is worth money).
An asset can have value for a few reasons:
- It can generate cash and/or
- It is rare, and other people want it.
A Basic Example
When I was a child, I used to keep chickens. I collected their eggs to sell.
My chickens were an asset as they generated cash when I sold the eggs.
Common Assets
A list of assets could be almost endless. 10 common assets you can own are:
- Currencies (Cash)
- Real Estate
- Stocks (Shares)
- Bonds
- Private Businesses
- Gold
- Jewellery
- Books
- Art
- A Newsletter
Coming soon.
- Article #3: Warren, What The Heck Is A Return?
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Disclaimer: This story is for informational purposes only. It is not intended as financial advice. Always undertake your own due diligence and seek advice from a financial professional.