Investing term

What is Real asset?

A physical asset with intrinsic value — property, commodities, infrastructure, farmland.

A real asset is a tangible thing with intrinsic value — property, commodities, infrastructure, farmland — as opposed to a paper claim like a stock or bond. Real assets often hold their value during inflation because their prices tend to rise with the general price level. They can diversify a portfolio, though many are illiquid and costly to own directly.

For example

Farmland keeps producing crops whose prices climb with inflation — a real asset that can preserve value when cash and bonds are losing it.

Real asset is taught hands-on in Stage 4 — Stocks, Bonds, Cash & Alternatives.

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Related terms

AlternativesInvestments outside the core stocks/bonds/cash mix — REITs, commodities, gold, crypto.BondA loan from you to an issuer (government or company), repaid with interest on a known schedule.Capital gainThe profit from selling an investment for more than you paid.CommodityA raw physical good like gold, oil, wheat, or copper — priced by the ounce, barrel, or bushel.
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