Depreciating Assets Explained in One Minute
Вставка
- Опубліковано 8 вер 2024
- Depreciating assets are assets about which you can be pretty much certain they'll lose value: electronics, furniture, you name it.
While depreciating assets are obviously "better" to have than liabilities, your goal should definitely be aquiring investment grade assets (real estate, stocks, digital assets and so on) rather than depreciating ones.
Remember: you BUY depreciating assets, you don't INVEST in them.
Please like, comment and subscribe if you've enjoyed the video.
To support the channel, give me a minute (see what I did there?) of your time by visiting OneMinuteEconomics.com and reading my message.
Bitcoin donations can be sent to 1AFYgM8Cmiiu5HjcXaP5aS1fEBJ5n3VDck and PayPal donations to oneminuteeconomics@gmail.com, any and all support is greatly appreciated!
Oh and I've also started playing around with Patreon, my link is:
/ oneminuteeconomics
Interested in reading a good book?
My first book, Wealth Management 2.0 (through which I do my best to help people manage their wealth properly, whether we're talking about someone who has a huge amount of money at his disposal or someone who is still living paycheck to paycheck), can be bought using the links below:
Amazon - www.amazon.com...
Barnes & Noble - www.barnesandno...
iBooks (Apple) - itun.es/us/wYS...
Kobo - store.kobobook...
My second book, the Wall Street Journal and USA Today bestseller The Age of Anomaly (through which I help people prepare for financial calamities and become more financially resilient in general), can be bought using the links below.
Amazon - www.amazon.com...
Barnes & Noble - www.barnesandn...
iBooks (Apple) - itunes.apple.c...
Kobo - www.kobo.com/w...
Last but not least, if you'd like to follow me on social media, use one of the links below:
/ oneminuteeconomics
/ andreipolgar
/ andrei-polgar-9a11a561
GiganticWebsites.com is a project through which I make it possible for people to build truly gigantic websites (thousands of articles each!) at ridiculously low prices. If you have a great domain you want to turn into an amazing website or an existing site you'd like to upgrade/scale, visit our website or check out the One Minute Economics presentation video below:
ua-cam.com/video/gE8yEOQFMvo/v-deo.html
Please note that this comment is not an ad for a third-party service provider. GiganticWebsites.com is my baby 100% and I will personally be involved in each and every project so as to ensure the website turns out great :)
From this video, I obtained the following info:
Assets:-
1) Undergoes Depreciation
-becomes less worth over time.
-also known as expense.
(yes it can be an investment too, when you buy the asset and capitalize it for some sort of production)
2) Undergoes Appreciation
-becomes more worth over time.
-it does not permanently increases, there will be a point of down turn.
-also known as investment.
(yes it is an expense too, because you initially bought the thing, the difference is that it doesn't have reduction
in its value after the purchase, rather, the price goes up until a certain eventual point.)
Thanks for the video.
nice informative short video, keep it up
Haha, that was quick :)
Thanks a lot for the comment, I'm really glad I'm starting to get comments and likes literally seconds after I upload a video. Thanks again!
Love this video, going to show it to my homebase! Also props for mentioning Bitcoin!!
Awesome, thanks a LOT for the support James :)
Not what I was looking for, but thanks.
Welcome to the community Bernard, hopefully some of my other videos will make up for it :)
Great that you promoted Bitcoin as an appreciating asset due to it being a disinflationary currency unlike USD fiat which depreciated at 2-6% a year and worse currencies that depreciate between 170-720% a year (Venezuela). Bitcoin has gone up from around 1/10 of a penny in value in may 2010 to 607 USD today , for an average return of 666% per year or the dollar losing 99.9+ % in value against bitcoin in the last 6 years. Growth has slowed but still growing at an incredible 159% from one year ago which is excellent returns from a cost average basis.
Thanks :)
I like cryptocurrencies in general and bitcoin in particular, I genuinely do.
Would I recommend keeping a large percentage of your wealth in this asset class? Definitely not but I firmly believe there's room in every portfolio for digital assets. Most economists are still extremely skeptical but as time passes, this state of affairs will gradually change IMO.
One Minute Economics Bitcoin is now an essential part of a portfolio not just because its returns but because it provides hedging as an uncorrelated asset class -- this is an excellent article going into detail.
www.forbes.com/sites/laurashin/2016/06/02/4-reasons-why-bitcoin-represents-a-new-asset-class/#3942e1f95ce5
Personally , I don't tell anyone new to bitcoin to speculate , daytrade or invest in btc. I tell them to buy some and use it for its utility. Whether it is buying items on the DNM or saving 20% off amazon , bitcoin offers utility that can immediately be realized.
Is depreciating assets and liabilities same ??
I love bitcoin!
Same here, I love digital assets in general but do my best to provide a balanced view in my videos and therefore try not to recommend them *too* aggressively. For now, I'm doing my best to make people aware of their existence and help them understand that if you don't have at least some digital asset exposure in 2016 and beyond, you're making a huge mistake :)
Gold is a good store of value , but it can be argued is a poor investment as it cannot beat the returns of many safe index funds like the SP 500 or the DOW over the long haul where you can expect an average of 9.7% a year. Thus one of the primary benefits of gold beyond investment is tax avoidence and money laundering due to its more fungible nature but at the cost of illiquidity and liability of usage and storage.
I'll be publishing a video about precious metals soon, perhaps even on Tuesday.
The video in question is finished (I currently have 6 100% finished videos in my "to publish" folder, I like to keep at least a handful of ready-to-publish videos as a measure of precaution, in case something happens that renders me unable to work on the channel for a while), I'll probably go ahead and publish it on Tuesday since you've mentioned gold :)
One Minute Economics Excellent, I love your videos.
If you liked this video, I think you'll love my personal finance book (Wealth Management 2.0) that has been written specifically for today's ultra-complex investment landscape and is available over at:
1) Amazon: www.amazon.com/Wealth-Management-2-0-Financial-Professionals-ebook/dp/B01I1WA2BK
2) Barnes & Noble: www.barnesandnoble.com/w/wealth-management-20-andrei-polgar/1124435282?ean=2940153328942
3) Apple Books: books.apple.com/us/book/wealth-management-2-0/id1146539158?mt=11
4) Kobo: www.kobo.com/ro/en/ebook/wealth-management-2-0
Isn't a depreciatiing asset a liability ?
One Minute Economics needs your help! Please give me a minute (heh) of your time by watching the following video if you find the channel useful, literally anyone can help (either financially or by spreading the word about my work): ua-cam.com/video/io04ckq1X1M/v-deo.html
So..which category fiat currency fall in? :P
Fiat falls in a category of depreciating asset class ranging from a loss of 2to5% a year to 720% inflation a year. Since interest rates are so low it makes little sense to even save fiat in a MM , bond , or savings account as inflation wipes out all earnings. Mutual funds are slightly better but it is best longterm to invest in broad index funds like Sp 500 which will get you the best average return around 9.7% beating gold. Bitcoin offers better returns but is also riskier. I suggest you first learn about bitcoin and use it for its utility with services like purse.io before investing anything in it though.
Welcome to the community Nikolaos!
As sanisidrocr mentioned, fiat currency tends to be a poor long-term store of value. However, I wouldn't consider it a depreciating asset because in certain situations, it can be great to have. For example, if a deflationary event such as a market crash takes place, having fiat currency within reach will enable you to buy some awesome assets at discounted prices. Generally speaking, fiat currency is good to have in a deflationary environment, when cash is hard to come by. I'll be publishing a video about liquidity soon-ish.
Anyone who honestly thinks buying a car or motorcycle is an investment that goes up is stupid as hell. Why are these called an asset in the first place when they lose value?
Bitcoin Cash = depreciating asset
Bitcoin 🤗