Saturday, February 20, 2016

Two Partial Lists of Investments

The following partial lists of investments have at least one key, distinct difference between them. Can you identify it?

List 1:

  • Stocks (equity ownership - residual claims on assets)
  • Bonds (credit lending - contractual claims on assets)
  • Real Estate (equity ownership of real, surface property such as your personal home, a home or apartment you rent out, a business building, a REIT, etc.)
  • Mineral Estate/Rights (equity ownership of real, under-the-surface property - the right to mine resources)
List 2:
  • Currencies (US Dollars, Euros, Yen, etc.)
  • Commodities (energy and agricultural such as oil and frozen concentrated orange juice)
  • Precious Metals (gold, silver, etc.)
  • Industrial Metals (copper, nickel, aluminium, etc.)
I will follow up with the answer in a few days.