Watches as a real investment class

C
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Let's say you're interested in buying luxury watches as a true investment. Suppose further that all the following items are true:

1. You're already doing very well financially and have a diversified portfolio.
2. You have an investment time horizon of 20-30 years.
3. You have about USD $250K to spend.

Would it make sense to invest in watches (a type of art) as opposed to (more) stocks and real estate?

If so, what would you buy? I'm thinking:

- Rolex GMT Master II and Daytona models
- Any Patek grand complication
- Any Patek steel sportswatch

Your thoughts?
 
THJunkie
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Are you after tips or validation of the concept?
 
Albert-AMG
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If I had that amount to invest, I would buy a Mercedes-Benz SLS AMG, which in addition to being a good investment (its price doubled in a few years since it was discontinued), I would enjoy it much more than a few Rolex! 😉

1AD377A3-D342-4589-8B80-F403588DB7DD.jpeg
 
Aquagraph
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Mmmm, fossil fuel cars... I can't see those being that great as a long term investment if I'm honest. And who knows if today's twenty year old's will be the future's 50 year old watch enthusiasts? I would invest in gold personally.
 
THJunkie
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Aquagraph Aquagraph
Mmmm, fossil fuel cars... I can't see those being that great as a long term investment if I'm honest. And who knows if today's twenty year old's will be the future's 50 year old watch enthusiasts? I would invest in gold personally.

well the star lord prized a walkman very highly and they even had a motorbike in star trek so you never know. Whether they will hold their value if they become illegal or impossible to use (even if only once on a blue moon), that’s anybodies guess.
 
THJunkie
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C calibre11user
Just trying to start a conversation and see others' opinions.

Personal opinion is that whilst I enjoy the fruits of capitalism, the voracious appetite and relentless drive that the system has to seek out every aspect of our lives for investment ‘kills’ the intended purpose of so many things.

it is inevitable as more and more money is ‘created’ and we start to reach the physical limits of the system. But a painting is sold to a collector and disappears out of the public eye. A bottle of wine goes underground never to be seen again because it might go up in value or is simply too expensive to drink in the first place. A watch is bough simply for the potential for gain rather than to enjoy as the maker intended (romantic notion that is if course outdated since most are mass made in a factory and the investments of today are engineered for scarcity for the very purpose) or as the example posted above a nice car is kept in a temp controlled garage and not driven like it was designed for.

Yes they may well make money. But do they add value to lives or create anything? I draw a distinction between investment and speculation. Investment should (in my humble opinion) add value beyond just the acquisition and holding,

well that’s the opinion side done. And it is just that. Others will have a different opinion of course.

as for tips. Sorry I’ve no idea other than the
Obvious based on collector’s auctions or the blogger hype. 😁

but as ‘man logic’ to gain spousal approval to spend a huge wedge on watches I wholeheartedly approve. Just don’t tell my other half I'd likely make more money betting on the horses 😁
 
kappa_md
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It was never a good idea to put watches as financial investment in the first place, IMHO. Your money can be spent or earn better elsewhere except for a few brands/models.

My personal “investment” with watches are with the stories they come with. Iconic designs. Legendary racers who wore them. Historical game-changers. Pioneering marvel. When I passed them on to my family, they will know what was the story behind them and probably get to know me better and how I looked at the world 😀 But again, you are entitled with your hard-earned money, and all boils down to my respect and well-wishes for you. My 2 cents. 👍
 
Seven Bacon
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I wouldn't count on a watch as a real investment. Sure a classic Rolex will most likely appreciate in value, but over a very long period. Maybe. Who knows 20 to 30 years from now, whereas if you're really looking for an investment strategy beyond your stock portfolio, look at real estate.
 
C
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THJunkie THJunkie
Yes they may well make money. But do they add value to lives or create anything? I draw a distinction between investment and speculation. Investment should (in my humble opinion) add value beyond just the acquisition and holding,

You say that an investment should add value / create something beyond just the acquisition and holding. But that would eliminate all non-dividend paying stocks, right? If you buy FB or whatever, what is it creating for you?
 
THJunkie
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C calibre11user
You say that an investment should add value / create something beyond just the acquisition and holding. But that would eliminate all non-dividend paying stocks, right? If you buy FB or whatever, what is it creating for you?

Nothing, or at least that’s relevant to watches I assume.
 
imagwai
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The fact that watches I've bought have, on average, held their value or gone up slightly, has allowed me to spend more on them and enjoy them more than I would otherwise have done. But if I didn't like watches, I would probably put my money in funds instead.
 
Anthony.
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Albert-AMG Albert-AMG
0F25DB55-F37A-4FAA-8298-3A7AC145C16D.jpeg

If I had that amount to invest, I would buy a Mercedes-Benz SLS AMG, which in addition to being a good investment (its price doubled in a few years since it was discontinued), I would enjoy it much more than a few Rolex! 😉

1AD377A3-D342-4589-8B80-F403588DB7DD.jpeg


This would be my dream Job.
I envy Bert Mylander for what he does on the weekend. Imagine driving this Machine around.
e0018c0211_013_4252.jpeg
 
Aquagraph
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My problem with watches as investments is that it colours your purchases. No doubt I could have bought watches that held their value better than the ones I did - but then I wouldn't be buying what I actually liked. I guess if you have enough money to buy all the watches you like and then buy a Patek to keep in a safe, then good luck to you.

But how do you know what's going to be 'hot' in 20-30 years? If we were all smart we would have bought a ton of Heuer chronographs ten years ago when they could be had for £900, but we didn't did we? Don't forget, if you buy a collectible Patek now you're already buying at the top of the market, and brands can fall out of favour. Vacheron seem to have fallen by the wayside in recent times for example.
 
Anthony.
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Aquagraph Aquagraph
My problem with watches as investments is that it colours your purchases. No doubt I could have bought watches that held their value better than the ones I did - but then I wouldn't be buying what I actually liked. I guess if you have enough money to buy all the watches you like and then buy a Patek to keep in a safe, then good luck to you.

But how do you know what's going to be 'hot' in 20-30 years? If we were all smart we would have bought a ton of Heuer chronographs ten years ago when they could be had for £900, but we didn't did we? Don't forget, if you buy a collectible Patek now you're already buying at the top of the market, and brands can fall out of favour. Vacheron seem to have fallen by the wayside in recent times for example.

Bricks and Mortar..
Can't go wrong for a long term Investment.
Maybe 1 top End Timepiece for a bit of diversity.
That's my opinion.
 
Mr_Orange
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In 20-30 years and with $250k, I could do much, much better in the stock market than double my money on a Rolex or Patek or three.
 
Mr_Orange
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My problem with watches as investments is that it colours your purchases.

Agreed. You would end up buying a dull as dishwater, steel Rolex or some Patek that you would too afraid to even wear.
 
kappa_md
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Anthony. Anthony.R
This would be my dream Job.
I envy Bert Mylander for what he does on the weekend. Imagine driving this Machine around.
e0018c0211_013_4252.jpeg

I remember F1 drivers complaining how “slow” the safety car. LOL! Disrupts tire temps 😜 But yes, I’d love to get an SLR - Silver Arrow!
 
Albert-AMG
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Anthony. Anthony.R
This would be my dream Job.
I envy Bert Mylander for what he does on the weekend. Imagine driving this Machine around.
e0018c0211_013_4252.jpeg
Yes, Bernd Maylander (former official Mercedes DTM racing driver) was also driving the Mercedes-Benz SLS AMG Safety Car (attached pictures) some years ago, which is a best investment than current Mercedes-AMG GT R 😉

5CFED954-7911-4B6F-A2BD-B6056B902D31.jpeg 8095D859-0526-4157-B2E1-A5C55A1FF297.jpeg
 
Redwes25
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I don't think you should buy watches or any art for that matter as an investment. Who know what trends will be in 20 to 30 years. The sports watch craze may die out and people will like the look of a classic dress watch. Honestly, who knows as the fashion of the time may be very different 20 years from now. Also, they are very illiquid investments. You need the money fast you can sell a stock in an instant. With real estate it can be an income earning investment as well. Selling a valuable watch is not quiet so easy (especially a very high cost one).

I think you should buy what you like and will enjoy to wear. If value goes up great but that is not why I would buy a watch.

I will add that I do think vintage watches will increase in value in the near term. I don't see styles changing radically in next few years and the federal government is just dumping cash into the economy and interest rates will be low for awhile. This will push up value of all assets (stocks, real estate and even watches) but I would be surprised if watches out perform the other two.
 
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