If you hold assets that appreciate in value for enough time, you’ll go in the right direction toward building wealth. In other words, with time, assets either grow in value (appreciate) or lose their value (depreciate).
Appreciating assets are those which increase in value as you own them. This means they gain value at least at the same rate as inflation, otherwise they become depreciating assets. Ideally, you’d want these assets to grow in value faster than inflation to earn a “real” return.
List of Appreciating Asset Examples to Add to Your Portfolio
Have a look at the following list of appreciating asset examples to see which make sense for your investing needs. Buy the right assets and hold them long enough, and you’ll see your net worth increase in value.
Shares of stocks represent partial ownership of a company that trades publicly on the stock market. When chosen strategically, stocks can appreciate significantly. Some stocks carry greater volatility than others, meaning they represent riskier investments.
There’s no denying the risks involved with crypto investing with the wild swings and massive capital flowing into the asset class. This is why you should only consider starting to invest with a small portion of your overall portfolio in this new investment category.