Investing in intangible items is the best way to build a strong brand, says Chris Johnson, an investment advisor at Diversified Financial Services.

Here’s what you need to know about how to invest.

1.

Identify a value asset type The best way for an investor to gauge an intangible asset’s value is to compare the company to other assets, Johnson says.

For example, if you invest in a company that sells toys that don’t make it to the next level, then the toys may be less valuable to you than a company selling high-end products.

Johnson recommends looking at the market value of the intangible assets as well.

For instance, a company like Amazon may be worth $2 billion and a company with a high-quality website may be valued at $10 billion.

Identifying the value of intangible assets is a good first step.

But what should you invest into first?

The first thing to do is to understand the company’s business and the value that it provides to your portfolio.

The following are five intangible assets that Johnson recommends investing in: A brand name for the company.

Brand names are used by companies to identify the company, such as Amazon, which sells books, software, and other items.

An intangible brand name can be any word or phrase that the company owns, such the company name is a trademark or an abbreviation.

A company’s name should not be the only identifier, Johnson notes.

Companies often use the name of an iconic brand like Coca-Cola to promote products or services.

An online store, for example, can help people discover the product or service they want.

Johnson also recommends researching the company website to determine whether the company has a social media presence.

3.

Know what the company is doing and how it does it If you’re interested in buying an intangible brand, Johnson suggests reading the company description, the company blog, or the company Web site.

The descriptions and blog posts may be helpful to you in deciding whether you want to invest or not.

If you don’t know what the brand is, Johnson recommends a search engine such as Google.

“You can get a sense of how they’re doing by reading the articles,” Johnson says, “but don’t rely on the reviews alone.”

3.

Identical or similar companies to your own A company that has similar products or brands is one of the most valuable intangible assets, he says.

An example is Microsoft, which is often compared to Apple because the company produces software for Windows and Mac computers.

However, the two companies also make similar products and services.

“If you invest directly in Microsoft, you’re in business for the long term,” Johnson explains.

If, on the other hand, you want a company to grow, you’ll need to look at the company for its future growth opportunities.

4.

Determine what the value is of each company’s intangible assets.

When choosing which intangible assets to invest into, Johnson advises investing in the ones that are similar to the ones he recommends investing into.

For the best return on investment, Johnson estimates that the difference between the value in an intangible company and the difference in the value to you will be the difference of $50,000.

Johnson says the best value is between $50 million and $75 million.

5.

Invest in the company that’s growing The best investment for an intangible is one that is growing, Johnson adds.

For that reason, the best strategy is to invest early in an industry that is expanding, he explains.

For a recent example, Johnson cites Amazon as an example of an industry expanding.

Amazon’s growth is accelerating and Johnson believes it’s the perfect time to invest as soon as possible.

“The growth is happening in other parts of the world, and Amazon is an emerging brand that has a very strong presence in Europe, so it’s a good fit for me,” Johnson said.

Investors should also consider other potential opportunities, such a technology company like Google, he said.

“It’s not just the growth in Europe that’s important, but the growth of all companies in the future.

If they’re expanding in Asia or Latin America, then I’d put a lot of money into Amazon,” Johnson added.

The next time you’re thinking about investing in an investment company, Johnson reminds you to “invest early and often” and that “it’s not about the stock price or the price of the shares.”