Experiences > Things as an Investment Practice

In 2011, I predicted on Twitter that experiences will eclipse bookings revenue by 2025. This thinking drove my investments in Airbnb and Couchsurfing — two businesses that emphasize experience and accessibility. Here’s how the Tweet reads:

What I meant by this was that people will want to be a collector of experiences rather than materials. We are already seeing this happen with the global movement toward minimalism, but this phenomenon does vary from person to person.

By necessity of interests or business pursuits, some people will have a need for more materials (possessions) than others. If you fix cars for a living or have a similar trade, like construction, you need more materials than someone who works as a freelance web designer. Yes, I know that some web designers have grand offices with a lot of computer equipment, but my point is that as time goes on, the trend for the majority is going to be more about collecting experiences than possessions. The younger generations wants to visit a place where they can capture unique experiences and lasting memories shared with friends and family. They are placing more value on the intangible asset of experiences rather than tangible possessions.

Experiences breed creativity. It’s easy to fall into the habit of upgrading, maintaining and insuring your accumulated possessions but when you work in a creative field, such as investing, it’s important to find a balance between being present and nurturing the relationships of today while keeping an eye on what is next.

I have found that the best way to do this is to live simply, keeping what is most important front and center and letting go of the things that are superfluous. It is better to have a few quality items than dozens that are cheaply made. And if you find that you have too many material possessions than you can reasonably enjoy, there is always a charitable organization who would appreciate your donations.

For more on the topic of creative investing and trends, follow me @shervin on Twitter or visit pishevar.com.