Quite often domain investors who have been in domaining for any considerable period of time have accumulated hundreds or in some cases thousands of domains. A portfolio of stocks can be valued based on the current trading price of each stock. Domains are not as easily valued. Retailers will often value their inventories at cost for financial reporting purposes. They may have acquired an article of clothing for $10 which retails for $25 but it appears on the books at $10 in the year-end balance sheet. Electronics retailers have to be particularly careful with inventory because technology can cause older SKUs to lose their value even below the original cost. In such cases, a lower of cost or market valuation may be used. A retailer will generally only order items it believes it can sell at a price above cost. Likewise, a domain investor will generally only acquire domains at a price below what they believe the domain can be sold. So if a domain investor only acquires domains they believe can be sold at a price perhaps well above cost, does cost have any baseline meaning for domain portfolio valuation purposes? The challenge lies in renewals which makes domains somewhat like options which expire "out of the money.\" if not sold prior to expiration. Of course a domain can be renewed but that requires additional resources again and again and again etc if buyers do not show up. Again, most domain portfolios have very low annual turnover and thus the majority of the portfolio needs to be renewed - hopefully with funds from sales. Of course if a ten-domain .COM portfolio regularly receives $XXXX offers on each of its domains, the $100 in renewals is not an issue. On the other hand, registering 100 20-character domains with random characters and numbers is not likely to generate anything other than renewals. So how does one determine if a portfolio is an asset or merely an expense?