Long-term investments in Rolex watches have outperformed gold and real estate

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jason_recliner
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Re: Long-term investments in Rolex watches have outperformed gold and real estate

Post by jason_recliner » February 12th 2022, 4:25pm

How is it a good investment if you have to sell it to see any returns? I'm not a money guy, whatever I'm buying, that's what you should be selling, so it's extremely possible I'm missing something. My houses may not have seen the capital gains of Rolex and some other watches (vintage Seiko springs to mind) but I get paid every week. Isn't that the objective of investing, to receive an income?

Aren't you tieing up money that could otherwise be used to invest and receive an income? I don't get it (that's probably why I'm poor!) i.e what about the opportunity cost of buying watches? (I knew high school economics would be useful some day!)

Excuse the stream of consciousness... The market is supposed to incentivise investment in productive enterprises. Buy shares in Coca Cola or Google or whoever and they'll be a better, more productive business. You can argue that real estate is an asset bubble but at least it's putting a roof over somebody's head. How is buying a watch productive (apart from employing the people who made the watch)? It seems like you're just gambling that the asset you bought today will be worth more tomorrow, and then you have to sell. Sounds like bullshit to me.

In my experience, when the press releases come out saying how good something is as an investment, that's when it's done, and you should have bought that already. I think used cars and watches are the prime examples of this currently, and a huge correction is imminent.
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Re: Long-term investments in Rolex watches have outperformed gold and real estate

Post by smellody » February 12th 2022, 4:44pm

jason_recliner wrote:
February 12th 2022, 4:25pm
How is it a good investment if you have to sell it to see any returns? I'm not a money guy, whatever I'm buying, that's what you should be selling, so it's extremely possible I'm missing something. My houses may not have seen the capital gains of Rolex and some other watches (vintage Seiko springs to mind) but I get paid every week. Isn't that the objective of investing, to receive an income?

Aren't you tieing up money that could otherwise be used to invest and receive an income? I don't get it (that's probably why I'm poor!) i.e what about the opportunity cost of buying watches? (I knew high school economics would be useful some day!)

Excuse the stream of consciousness... The market is supposed to incentivise investment in productive enterprises. Buy shares in Coca Cola or Google or whoever and they'll be a better, more productive business. You can argue that real estate is an asset bubble but at least it's putting a roof over somebody's head. How is buying a watch productive (apart from employing the people who made the watch)? It seems like you're just gambling that the asset you bought today will be worth more tomorrow, and then you have to sell. Sounds like bullshit to me.

In my experience, when the press releases come out saying how good something is as an investment, that's when it's done, and you should have bought that already. I think used cars and watches are the prime examples of this currently, and a huge correction is imminent.
Rolex will continue. At least for my lifetime. You are right though in that I ain't selling.

I had a hair up ass earlier this week to let my Daytona go to replace my beloved XKE.

I then realized I'd probably never be able to get a gold Daytona again.
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Re: Long-term investments in Rolex watches have outperformed gold and real estate

Post by 3Flushes » February 12th 2022, 5:06pm

jason_recliner wrote:
February 12th 2022, 4:25pm
How is it a good investment if you have to sell it to see any returns? I'm not a money guy, whatever I'm buying, that's what you should be selling, so it's extremely possible I'm missing something. My houses may not have seen the capital gains of Rolex and some other watches (vintage Seiko springs to mind) but I get paid every week. Isn't that the objective of investing, to receive an income?

Aren't you tieing up money that could otherwise be used to invest and receive an income? I don't get it (that's probably why I'm poor!) i.e what about the opportunity cost of buying watches? (I knew high school economics would be useful some day!)

Excuse the stream of consciousness... The market is supposed to incentivise investment in productive enterprises. Buy shares in Coca Cola or Google or whoever and they'll be a better, more productive business. You can argue that real estate is an asset bubble but at least it's putting a roof over somebody's head. How is buying a watch productive (apart from employing the people who made the watch)? It seems like you're just gambling that the asset you bought today will be worth more tomorrow, and then you have to sell. Sounds like bullshit to me.

In my experience, when the press releases come out saying how good something is as an investment, that's when it's done, and you should have bought that already. I think used cars and watches are the prime examples of this currently, and a huge correction is imminent.
^^^This

I've always found it amusing how in upper class economics, expenditures on luxury goods somehow become good investments. The same applies to luxury cars. While a few Mercedes or Porsches appreciate or become collectible scarcities, such gets generalized wholly to a brand.

The Daytona is the Rolex that has really gone nuts, Submariners are up quite a bit as well. For the most part, the rest of the line is up a little or holding while a few reflect typical used value. I suspect Subs and Daytonas are skewing the numbers if the "averages" are not calculated properly to account for them, but I would have to see Bob's work to know for certain. I think that while the Daytona and the Sub may currently be over performing stocks and some commodities, etc., it could well be that Bob's numbers have been overgeneralized to reflect the entire line.
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Re: Long-term investments in Rolex watches have outperformed gold and real estate

Post by Nuvolari » February 13th 2022, 10:19am

An “investment” is a pretty broad term and I get your fundamental point, J-Re. Your description of an asset that throws off income is arguably a wiser convention….

But, gold, as an example, does not pay a dividend either, though, it has proven to be a good vehicle for capital appreciation.

And I believe that is the gist of what they’re referencing. Similar to stock without a dividend… now it’s worth much more - IF you sell it.

Banks still pay basis points on saving… so, if you come into some lotto money, where should you park it?

Potentially ‘Future-classic’ cars like an E36 BMW or a Mercedes’ 190 2.5-16? Gold? Bitcoin? Beanie babies? Real estate? ETFs? Wartches?

I don’t think it’s a reliable retirement plan…. But, if you had some extra coin to park somewhere and you’re one of those dudes who is unwilling to try shit unless you can make a buck…. well, you could do a lot worse or take on a lot more risk by parking your hard-earned or easy-come-easy-go money on a Real Rolecks.

Kermit saved my client’s ass. He bought it new from the AD for c. $9k +/- and then a year or so later when his financial mismanagement nearly resulted in him not being able to close on his new-home purchase - he PAWNED the watch (to Bob’s watches, it turns out) for $15,000 and was able to close escrow.

The 190 2.5-16 and real property are a lot harder to turn into cash, quickly.

Bob’s is an institution that ends up becoming a sort of market maker since they are the go-to source to turn wrist-jewelry into cash.

I also agree that by the time the media starts harping is the time you want to get out…
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