Hey there, Tom here.

The other day, I saw an ad for an app that lets you rip open packs of Pokémon cards, right from your smartphone…You can then resell the cards on an online marketplace or have them shipped to your home.

The world of alternative asset investing is getting absolutely insane 😂

I mean, ripping card packs from your phone!?

But this rabbit hole got me interested in the world of alternative assets…Which asset classes are most popular? Where are people investing? And what sorts of returns are these asset classes even capable of?

Let’s take a bit of a dive on some alternative asset classes, how they work, and how you can decide if they belong in your portfolio 😎👇

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When most people think about investing, they think about stocks, ETFs, bonds, and maybe real estate.

But there’s a whole other world of assets people are buying, collecting, and investing in.

Some are physical. Some are digital. Some can generate cash flow. Others are basically bets that someone will be willing to pay more for the asset in the future.

Here are five alternative assets worth knowing about.

Trading cards have gone from something kids traded at school to a serious collectibles market.

Sports cards, Pokémon, Magic: The Gathering, and other trading cards can be bought and sold through marketplaces, auctions, and specialized dealers.

The basic investment thesis is pretty simple: buy desirable cards in limited supply, ideally in excellent condition, and hope demand from collectors continues to grow.

The catch?

There are a lot of cards.

A random baseball card isn't necessarily going to become valuable just because it's old. The cards that tend to command serious prices usually have some combination of scarcity, condition, historical significance, and a popular player or character.

The interesting thing about trading cards is that you don't necessarily need millions of dollars to participate.

You could buy a $50 card.

Or a $5,000 card.

Or, if you have considerably more money than I do, a card worth hundreds of thousands or even millions.

But I'd treat cards as speculative collectibles rather than a replacement for a diversified portfolio. These are highly illiquid. And while we’re in a trading-card boom right now, I wouldn’t be surprised if the hype settles down in the next couple of years.

Luxury watches are another alternative asset where the object you're buying can also be something you actually use.

Rolex, Patek Philippe, Audemars Piguet, Cartier, Omega, and other brands have enormous collector communities.

⌚ The appeal is obvious: a great watch can be worn for decades, passed down to your kids, and potentially sold later.

But there's a huge difference between buying a nice watch and buying a watch as an investment.

The luxury-watch market went absolutely insane during the pandemic, with prices for certain models skyrocketing. Then the market cooled off.

That's an important lesson: even famous luxury watches aren't guaranteed to appreciate.

The lesson here is that watches can be fascinating alternative assets, but brand and model matter enormously. And like I said, a watch you purchase as an investment isn’t the same as a watch you plan on wearing every day.

Real estate is hardly an unusual investment.

But real estate crowdfunding makes it possible to invest in property without buying an entire property yourself.

This is actually one alternative asset class I’m beginning to dabble with. And I wrote more about real estate crowdfunding in my post on 7 realistic passive income ideas you can build.

The low barrier to entry is what’s appealing here. Platforms like Ark7 and Fundrise let you invest in income-generating properties starting with only $20 and $10 respectively. This is something anyone can try.

Real estate crowdfunding is also hands-off. As an investor, you provide capital. But the crowdfunding platforms handle finding tenants, maintaining properties, collecting rent, and everything else.

💰 That’s the appeal: You can diversify your income and portfolio, get a bit of downside protection, and you’re not taking on the responsibilities (and risks) of being a landlord yourself.

The global real estate crowdfunding market was estimated at approximately $29.1 billion in 2025 and is projected by The Business Research Company to reach roughly $173.4 billion by 2030. That's an estimated 42.9% compound annual growth rate.

NOTE: Real estate crowdfunding isn't the same thing as buying a diversified REIT ETF. Individual projects can run into construction problems, vacancies, financing issues, or falling property values. So this is one where I'd do a lot of due diligence before investing.

This is probably my favorite category on the list. I also wrote about how you can invest in digital assets and why this is something I’m actively doing.

Now when I say ‘digital assets’ I’m not talking about Bitcoin.

💻 I'm talking about internet properties:

These are assets that can potentially generate cash flow while also having resale value.

I mean, imagine buying a website that earns $3,000 a month.

You aren't just buying a website. You're buying an asset that produces approximately $36,000 a year in revenue or profit, depending on the business.

That's fundamentally different from buying a collectible and hoping someone eventually pays you more for it.

And this market is much more developed than most people realize.

This is where alternative assets get really interesting to me 👉 A website or YouTube channel can potentially be both an investment and a business.

You can buy an existing asset, improve it, increase its revenue, and potentially sell it later.

Of course, there's a catch.

Digital assets can disappear surprisingly quickly if Google changes its algorithm, YouTube changes its policies, a competitor takes your traffic, or the business depends too heavily on one platform.

Still, I'd rather own something that can generate cash flow while I own it than something that just sits in a safe waiting for someone to pay more. I like to have control over my own destiny! 😂

And finally, we have vintage and collector cars.

This is probably the most fun asset on the list.

A vintage Porsche, Ferrari, Mercedes, BMW, Ford, or other collectible vehicle can potentially appreciate while giving you something you can actually drive.

That's part of what makes collector cars different from many other investments.

You're not just staring at a number on a brokerage account. You can take the asset out for a Sunday drive! 😎

But again, not every old car is an investment…Some old cars are simply old cars.

Collector-car values depend heavily on the model, condition, provenance, rarity, originality, and collector demand.

That last statistic is particularly interesting.

It shows why "investing in classic cars" isn't really super simple. You can’t just buy any old, valuable car and expect the price to increase indefinitely. Most of the market actually remains relatively flat or declines.

Personally, vintage cars aren’t for me. But if you’re a gear head, this could be one avenue worth exploring, provided you do your research!

Alternative assets can be incredibly interesting because they give you ways to invest beyond the traditional stock-and-bond portfolio.

But the 5 asset classes I shared is just scratching the surface…

Wine/whiskey, artwork, ATMs, vending machines, precious metals, rare books, antiques, venture debt/capital, stamps, comic books and dozens of other alternative asset classes exist.

Does this mean alternative assets belong in your portfolio?

Well, for most people, I’d argue keeping things simple with index funds, ETFs, and dividend stocks makes the most sense.

AND if you do plan on venturing into alternatives, I’d focus on ones that can generate cashflow…Real estate crowdfunding, cash-flowing online assets…That sort of thing.

That’s just my personal preference. I’d love to know what you think and if you’re a fan of any of these asset classes, or if you’re skipping out on them 😊

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