Intangible Assets

Intangible, literally meaning not being able to touch. An intangible asset for a company is one that has value and adds value to the company but is not physical. A patent on a special type of foam could be an intangible asset for a mattress manufacturer, notice it is the patent and not the foam that we are talking about. Intangibles are frequently improperly priced and thus the absolute value of an intangible can never be precisely pinpointed. When Warren Buffet invested in Coke one of the company’s most attractive assets was its brand. How much is the brand of Coke worth? Certainly something, a lot, but it is difficult to accurately value such an item.