Assets are permanently subject to risk. Risks have increased greatly over the past few years, whether due to globalisation, depletion of our planet's resources, unprecedented expansionary monetary policy on the part of central banks or geopolitical tensions.

A strategic approach
The only way to build up assets over the long term is to use a strategic approach. Asset accumulation and preservation and returns on investment are cornerstones for achieving financial freedom.

Risk-free
No asset class is risk-free these days.

Even cash deposits at banks are exposed to the risk of the bank or the state becoming insolvent. Inflation causes cash to lose more than 40% of its value over a 20-year period.

Adopting a long-term perspective for the best returns
From a long-term perspective, investments in stocks show the best returns. For example, the average annual growth of the S&P Index (the US stock index) between 1985 and 2015 was 10.28%.

Example:
Let's assume you invested a sum of €50,000 in the S&P in 1985. By 2015, this would have increased to the massive sum of €941,613.

There are three key aspects to asset building:

1) Regular and long-term investing:
reduces the risk of investing at the wrong time and levels out asset purchase prices

2) Risk-spreading:
A broad geographic and sectoral spread reduces risks decisively

3) Performance:
The compound interest effect is a powerful wealth accumulation lever