Value is the amount amount of utility that someone or something can provide. Any given asset has a set amount of value that can either depreciate or appreciate.

The type of value is completely dependent on what the desired outcome might be. Here are a few examples…

Someone builds a wooden fence and never comes back to maintain it. This would be considered a depreciating asset because over time it loses it initial value due to rot or breaking apart etc.

A wine company creates a new wine flavor and then stores the wine in a barrel in order to age the wine to increase the flavor. This is an example of an appreciating asset because it’s increasing in value over time.

While one seems better than the other, it all depends on what the desired outcome is. Maybe the person who built that fence only intended for that fence to have high value for a short period of time and spending more resources to maintain it is unnecessary and would be a waist.

It is imperative that you analyze what type of service or asset you are spending your limited resources on with the intent to avoid taken losses and maximizing positive gain.

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