The Value of Intangibles: Investing in Experiences, Not Things

In an era where digital innovation reshapes every facet of life, the concept of value has undergone a radical transformation. Global intangible assets of the world's largest companies now dominate economic landscapes, signaling a shift from physical to ethereal wealth.

This corporate phenomenon finds a powerful parallel in personal finance, where research consistently shows that spending on experiences brings greater happiness than material purchases. The journey from boardrooms to living rooms reveals a universal truth: what we cannot hold often holds the most worth.

By exploring the rise of intangibles in business and life, we can unlock strategies for richer investments and more fulfilling existences. The accelerating role of innovation in driving this change underscores the need to rethink traditional measures of success.

From intellectual property to cherished memories, intangibles weave through our economies and psyches, offering lessons in resilience and joy. As we delve into the data, a compelling narrative emerges, one that bridges macro trends with micro decisions.

This article aims to inspire and equip you with practical insights, blending corporate analytics with personal wisdom. Let's embark on an exploration of value that transcends balance sheets and bank accounts.

The Rise of Intangible Assets in Business

Intangible assets are non-monetary, non-physical resources that generate economic value. They include rights, relationships, and intellectual properties that fuel modern enterprises.

The shift from manufacturing to service and tech economies has made intangibles primary drivers of corporate worth. Today, companies are valued more for their ideas than their inventory.

Accounting standards often fail to capture this reality, with many intangibles expensed rather than capitalized on balance sheets. This leads to significant undervaluation and gaps in financial reporting.

• Intellectual property such as patents and copyrights
• Brands and trademarks that build customer loyalty
• Data and software that enhance operational efficiency
• Workforce relationships and corporate culture

These elements form the backbone of competitive advantage in the 21st century. Non-physical assets like contracts and IP are increasingly the bedrock of market leadership.

Understanding these assets is crucial for navigating modern markets. Their intangible nature requires new frameworks for evaluation and management.

Corporate and Market Insights

The value of global intangible assets reached a staggering $97.6 trillion in 2025, marking a 23% increase from 2024. This is the highest level since tracking began in 1996.

Remarkably, 83% of this value is not disclosed on balance sheets, relying instead on enterprise value estimates. This opacity challenges investors and analysts alike.

The United States has overtaken Denmark as the most intangible market, with an intangibility rate of 78%. Denmark dropped from 82% to 67%, reflecting global volatility.

• Top company: NVIDIA at $4.3 trillion intangible value, up 50%
• Followed by Microsoft, Apple, Amazon, and Alphabet
• Eight of the top ten companies are U.S.-based

Sector declines are notable, with pharma down 8% to $6.5 trillion. Firms like Novo Nordisk saw a 67% drop, and Eli Lilly fell 20%, largely due to policy pressures such as drug pricing reforms.

This data highlights the dynamic nature of intangible investments. Record-high growth driven by innovation coexists with sharp declines in certain industries.

Investors must stay alert to these trends to make informed decisions. The volatility underscores the importance of diversification and risk assessment.

Investor Perspectives and Policy Implications

Investors are increasingly vocal about the need for better disclosure of intangible assets. Surveys show that over 70% believe unrecognized intangibles explain book-market value gaps.

More than 80% of investors demand improved disclosures, yet only 39% find current ones useful. This gap underscores the urgency for regulatory updates.

• 73% of investors criticize impairment testing, preferring amortization for transparency
• Calls for disclosures on types, amounts, and future cash flows of intangibles
• International standards bodies like IASB and FASB are researching updates

Policy changes, such as IMF updates to national accounts, aim to better capture digitalization and sustainability. Net domestic product (NDP) is typically 10-25% lower than GDP, accounting for depreciation and resource depletion.

Investor support for recognition is growing, but priorities lean towards disclosures first. This balance is crucial for market stability and informed decision-making.

Embracing these changes can lead to more transparent and resilient economies. The push for better metrics reflects a deeper understanding of value in the digital age.

The Personal Analogy: Experiences Over Things

The corporate focus on intangibles mirrors a personal finance principle: investing in experiences yields higher returns in life satisfaction than material goods. This analogy bridges economic trends with everyday happiness.

Studies show that experiential spending, such as on travel or events, provides lasting benefits that material purchases often lack. The social and emotional dimensions amplify these effects.

Hedonic adaptation explains why the joy from new possessions fades quickly, while memories from experiences grow richer over time. Lasting anticipation and identity value make experiences a superior investment.

In the U.S., experiential spending grew 15% year-over-year to $1.1 trillion in 2023. Millennials, in particular, prioritize experiences over things by a ratio of 2:1.

• Experiences foster social connections and personal growth
• They become part of one's identity and narrative
• Material goods often lead to comparison and dissatisfaction

By aligning personal spending with this insight, individuals can enhance their well-being. The shift towards experiential consumption reflects a deeper understanding of what truly enriches life.

Practical steps include budgeting for travel or hobbies that build memories. This approach can lead to a more fulfilling and balanced lifestyle.

Risks and Volatility in Intangible Investments

High exposure to intangible assets can make firms vulnerable to rapid declines, as seen in sectors like pharma. Brand and patent risks can lead to significant value drops.

Annie Brown, Brand Finance Valuation Director, notes: “Record-high global intangible asset value in 2025 underscores the accelerating role of innovation... but notable drops highlight volatility.”

This volatility serves as a reminder for businesses to actively manage their intangible assets. Among the most powerful drivers of commercial outcomes, they require careful attention.

• Pharma sector declines due to policy pressures on drug pricing
• Oil and gas industries facing similar intangible vulnerabilities
• Need for diversification and risk assessment in intangible portfolios

For individuals, investing in experiences also carries risks, such as disappointment or financial strain. However, the long-term benefits often outweigh these concerns.

Planning and moderation can mitigate these personal risks. Volatility faced when investing in high-intangible areas calls for a balanced approach.

Measuring the Immeasurable

Quantifying intangible assets remains a challenge, both in corporate and personal contexts. Methodologies like Brand Finance's GIFT™ use royalty relief models to estimate value.

This involves calculating a Brand Strength Index score, deriving a royalty rate, and discounting future revenues. Such approaches help bridge the gap between perception and valuation.

• Impairment testing vs. amortization debates in accounting
• Investor preferences for transparent measurement techniques
• Personal metrics: happiness ratings, life satisfaction surveys

As economies evolve, better measurement tools are essential for capturing the full spectrum of value. Innovation in valuation methodologies is key to understanding intangible wealth.

Applying these lessons personally means tracking joy and growth from experiences. Better measurement tools are essential for making informed life choices.

In conclusion, the value of intangibles—whether in corporate boardrooms or personal lives—offers a blueprint for sustainable success. By investing in experiences and nurturing non-physical assets, we can build richer, more resilient futures.