Intrinsic value and long-term growth: Hard assets vs. intangible assets

Assets are among the many ways that people are hedging against currency devaluation, gaining popularity during times of economic uncertainty when the value of currency is expected to fluctuate unpredictably. Unlike currency, certain assets maintain or even double their worth over the passage of time, making them a good way to preserve or grow wealth in the face of uncertainty.

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There is a wide array of assets to choose from; from real property to patents, documents, and brand recognition. Hard (or tangible) assets are among those that are identifiable even to the neophyte investor and layperson. Hard assets include land, commodities, or equipment. These make money either through intrinsic worth (which can go up or down depending on supply and demand, maintenance, rarity, and other factors) or through the ability to generate long-term income.

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Intangible assets comprise a number of non-physical items such as brand names and logos, patents, and knowledge that have a long-term potential for profitability in spite of being non-taxable. This makes them particularly valuable for publicly traded companies, though they are a lot more difficult to quantify and grow. They are known as soft assets when taken together with human resources (a kind of tangible asset not counted among hard assets).

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Hard assets and intangible assets have long-term profitability tied to them. Hard assets are normally directly profitable because they are capable of producing revenue directly whereas intangible assets influence how businesses perform and flourish. Both play an important role in growth from the perspective of entrepreneurs and business executives, whose profitability hinges both on production, innovation, and brand image.  

Trinitas Partners focuses on investment opportunities in fields where hard assets and real property play key roles. Visit this website for more on the company, its history, and its management.