Asset DNA: The Diverging Performance of Store-of-Value Assets
Not all assets are created equal. Some appreciate in value, some lose value over time.
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Not all assets are created equal. Some appreciate in value, some lose value over time. This is obvious with things we consume, like the groceries we eat or the clothes we wear. But the same is true of assets that don't visibly deplete but nevertheless lose value over time through wear and tear, like a car accumulating miles or a building without active maintenance.
Less obvious is how assets that are not depleted by consumption or depreciated through use also vary in their performance over time. Traditional scarce assets like gold or land do a good job of maintaining their value and growing in relatively fixed proportion to the global economy. Ownership shares in successful companies typically generate additional yield by putting scarce capital to work.
Read full report here.
