Assets Vs. Investments: How To Tell The Difference

Last weekend, I had a great conversation about investments with some friends. They finally realized that there is a big distinction between assets & investments. While they’d never thought about those differences before, it occurred to me that most people haven’t thought about them either.  I’m always surprised when somebody justifies a purchase with the term, “It’s an investment”.

Assets & Investments are like Apples & Oranges! Learn more at
“Oh, I buy expensive watches. They’ll be worth more in 20 years” a new friend said to me. “Buy a classic car – it’ll hold it’s value” was something I’ve heard before. Or, “I’m buying and holding on to great musical equipment like microphones, because good gear is always going to be good gear” was another comment. These bright, clever, and driven people claimed that all were good investments. But they hadn’t thought about it from the correct vantage point.  If they had, they’d see apples and oranges…