The Value of Intrinsic Value

In The Four Pillars of Investing, William Bernstein writes:

“Only an income-producing possession, such as a stock, bond, or working piece of real estate is a true investment.”

I entirely agree. That is the concept of intrinsic value. Yes, you can put your money into other kinds of things, including gold and cryptocurrency. But it is very hard to know what those types of things are really worth because they don’t produce anything. As a result, they are only worth what the next person will pay for them. So even though it may seem limiting, I recommend only including stocks, bonds and real estate (and cash) in portfolios.