Rolex As An Investment = Bad Idea

[nektar]

Originally Posted by dtwer

Never a truer word spoken.

I have sold several cars and motorcycles over the years. My conclusion: hardly worth my time. The number of tire kickers and flakers I had to deal with was hard to believe at times. I always made sure I was not selling out of desperation, still I don't believe I managed to get much more than what I otherwise would have by trading the vehicles in.

[Roll the Lex]

I just want my watches to depreciate less than my car. If my watch collection is worth more than $2k in 10yrs, mission accomplished. Anything better than that is a bonus.


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[Flintstone]

You can't take your $$$ with you when you die -- or to a nursing home for that matter as they will drain your saving before accepting you. So, if you like it and can afford it then buy it. Consider it a life investment.

[dollar919]

where’s my dividends

[Etschell]

Originally Posted by Pay M3

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

Ever heard of the Nikkei. Look at 1990 until now. People believe markets have to go up forever. It isnt true. So presuming rolex will go up can easily be a decent bet for a small sum. It can outpace a market. Now will it probably not. Are watches investments? Well they can be. It is all speculative. In 50 years people may think automatic watches are little more than junk.

I didn't buy a rolex because I thought it would dump in value. Holding its value or increasing was part of the equation. A very small part.

[reddog4063]

Lets say my watch goes up 5k. Ok, so what. I can barely run my household for a month on that. The watch is going to need to go up 100k or more and that aint happening so who cares really.

[Rocket launcher]

Buy the correct model and make £1000s by walking out the shop.....
Now that's a quick turnover and not bad for an investment
A 50th anniversary sub bought for £3700 is worth £12000 today now that's a good investment

[ROLEX MAN]

7% WHERE?

Not in Australia!

[TimeToWatch]

Originally Posted by Pay M3

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

Not that this should be taken as the norm nor your motivating factor towards making a purchase, but my collection is up 40% and the oldest piece I own was purchased in 2014...

I agree that watches are not an “investment” in the traditional sense, but substantial returns may nonetheless be made

[The Libertine]

Retains its value, yes. As an investment, no.

There’s a difference between the two that the uninformed often confuse.

[liu_watch]

I think we are debating about the term “investment”. It means a different thing to people in finance vs non-finance. Some feel an investment must have an EXPECTED return greater than zero; some see an watch as an investment because it is an asset. Some may even include the intangible value. Regardless of the definition, a few facts:

-On average, the expected return of S&P 500 index fund over a 10 period is positive, despite that any individual stock may have a negative return.

-On average, the expected return of a given watch portfolio over a 10 year period is negative, despite that a lucky collector may have a positive return on his watches.

Therefore, it’s logical to conclude that “watches are not a good investment vehicle” - in the sense that if some wants to make money, do not choose watches. But I suspect when posts ask for watch investment ideas, s/he meant: which watch will likely keep its value, or if lucky, increase a little, despite his/her knowledge that a municipal bond is likely to outperform a watch portfolio.

[HappyFish]

Does anybody think that a Paul Newman Daytona will ever become "cheaper" again, or a Ferrari GTO 250, a Mark Rothko?! For sure a good investment even if you buy them at todays prices!

Only buy triple A`s, no B`s, no Panerai`s (since Richemont) ;-)

[DanMdR]

Not a terrible investment once you factor in 30% capital gains tax (Fed 15% + CA 15%) on any “traditional” investment.

[904VT]

Originally Posted by DanMdR

Not a terrible investment once you factor in 30% capital gains tax (Fed 15% + CA 15%) on any “traditional” investment.

Ouch it's that high in Cali? Wow. I'm sorry to hear

[DanMdR]

Originally Posted by 904VT

Ouch it's that high in Cali? Wow. I'm sorry to hear

Ya! And it’s my understanding that it’s not a “set” 15%. It just follows federal. So if Federal Cap Gains go up to 20%, CA will automatically go up to 20% as well.

[904VT]

Originally Posted by DanMdR

Ya! And it’s my understanding that it’s not a “set” 15%. It just follows federal. So if Federal Cap Gains go up to 20%, CA will automatically go up to 20% as well.

And it's not like we have a national pension funding deficit or fully funded personal retirement accounts now do we. That's a brutal disincentive to save. I'd just buy more Rolex lol

[DanMdR]

Originally Posted by 904VT

And it's not like we have a national pension funding deficit or fully funded personal retirement accounts now do we. That's a brutal disincentive to save. I'd just buy more Rolex lol

the question these days is, does Rolex keep up with inflation? Banks sure don’t.

[WJGESQ]

Originally Posted by Pay M3

Why do people continue asking this? All it takes is some simple math to realize it’s not a good investment and is in fact meant to be worn as a watch. This same argument gets made in other markets as well and it blows my mind.

8k over a 30 year period at a modest return of 7% with traditional investments will net you more of a return (roughly 55-60k) than your average Rolex unless you get lucky with a unicorn piece.

Stop worrying about this stuff and buy the thing.

Your forgetting the fact that you've also been able to wear and enjoy a classic and prestigious time piece and actually make money at the same time. There's value in that. Bottom line is there's not many luxury items you can buy, enjoy and not suffer horrendous depreciation. But an SS Rolex seems to be the exception.

[AK DeepSea]

I bought a BLRO and sold it for a 60% profit in less than 24hrs. That’s a good investment in my book.

[10klakes]

Originally Posted by AK DeepSea

I bought a BLRO and sold it for a 60% profit in less than 24hrs. That’s a good investment in my book.

I bought a BLRO last August and wore it since. I too could sell mine for a 60% profit tomorrow if I wanted. Even better imo....

[nektar]

Originally Posted by 10klakes

I bought a BLRO last August and wore it since. I too could sell mine for a 60% profit tomorrow if I wanted. Even better imo....

I did not buy a BLRO because I did not like it, and if I liked it I would buy to wear it and not flip it.


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[Chilly Coconut]

Originally Posted by AK DeepSea

I bought a BLRO and sold it for a 60% profit in less than 24hrs. That’s a good investment in my book.

That’s not an investment. That’s a trade.

[mikeyatc]

I see it as money that I can keep a close eye on.

[nektar]

Originally Posted by AK DeepSea

I bought a BLRO and sold it for a 60% profit in less than 24hrs. That’s a good investment in my book.

This is not an investment...


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[nektar]

I agree on the second part.


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[nektar]

In my opinion there is no way a modern Rolex is an investment. And it should not be. It is a nice watch, that attracts a bit of attention and made to be worn under any circumstances. As a reminder of the you events of your life. Good or bad.


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