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Charlie Munger

Investment Dictionary


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Financial Assets

 

There are two main investment (asset) classes: financial assets and non-financial (tangible) assets. Both of them may have similar characteristics as yielding or increasing in value over long period; but financial assets cannot be kept by investor physically and are just a paper (certificate) or more often in current days just an entry in electronically depository that guarantees the rights to the financial asset.

 

Financial assets (securities) are stocks, bonds, funds, derivatives, etc. 

 






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