If you had the cash would you buy a 5711?

[wulin]

Originally Posted by Aquaman

so bad pic then, mind u the 5711 and 12s aint that blue anyways

Here is a better pic:


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[Aquaman]

Originally Posted by wulin

Here is a better pic:


Attachment 1072089

True dat x

[Analysing You]

Originally Posted by wulin

Here is a better pic:





Attachment 1072089

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[Bearxj86]

Actually a 3712a and here are pics of each in better lighting;




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[Humble michael]

Originally Posted by bearxj86

It’s the opportunity cost concept as well guys. Bottom line is you are a implicitly assigning a higher value to the watch than the cash value of the watch by keeping it. In other words it is worth more to you qualitatively or quantitatively or you would have sold it.



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Great explanation!

[Ichiran]

In accounting we recognize inventory at lower of cost or net realizable value. Gain is only recognized when we sell at higher price. Derivatives and certain classes of financial instruments will be at fair value.

Just saying.

[Bearxj86]

Originally Posted by Ichiran

In accounting we recognize inventory at lower of cost or net realizable value. Gain is only recognized when we sell at higher price. Derivatives and certain classes of financial instruments will be at fair value.

Just saying.

So...my 5711 will be accounted for at lower of cost or net realizable value. FatNinja's underwritten short position will be at fair value! :)

[Ichiran]

Originally Posted by bearxj86

So...my 5711 will be accounted for at lower of cost or net realizable value. FatNinja's underwritten short position will be at fair value! :)

The crux is how we see our 5711.

[cascavel]

Originally Posted by james272

Well, I have a 5711 white and it is one of my favorite pieces and gets the most wrist time.
Would I pay today’s prices? Sorry to tell you, if you have one ( I know you do Ninja, ha!) you are paying today’s grey price by not selling.I have the timepiece in one hand and the other hand is the market offering let’s say $50 k, if I refuse the market’s offer of $50 , I paid (didn’t receive my 50 offered for it) the market price for the pleasure of owning. As to what it is worth, we can postulate all day long about it not being worth more than x dollars but the market determines ( whether we agree with price being paid or not) the value. In short if you have one and don’t sell in honesty you have paid market price so my answer is yes to the question. :-)

Seriously, brilliant. Should be the final answer.

[kans86]

Originally Posted by james272

Well, I have a 5711 white and it is one of my favorite pieces and gets the most wrist time.
Would I pay today’s prices? Sorry to tell you, if you have one ( I know you do Ninja, ha!) you are paying today’s grey price by not selling.I have the timepiece in one hand and the other hand is the market offering let’s say $50 k, if I refuse the market’s offer of $50 , I paid (didn’t receive my 50 offered for it) the market price for the pleasure of owning. As to what it is worth, we can postulate all day long about it not being worth more than x dollars but the market determines ( whether we agree with price being paid or not) the value. In short if you have one and don’t sell in honesty you have paid market price so my answer is yes to the question. :-)

Perhaps it is not just simple as that. Maybe there are some sentimental values attached to the watch so you do not want to sell it. Or if you are offered 50k, but you think the market price may rise to 100k, then you do not want to sell it now. So there maybe more factors to consider here.

[Fat_ninja]

Originally Posted by Ichiran

In accounting we recognize inventory at lower of cost or net realizable value. Gain is only recognized when we sell at higher price. Derivatives and certain classes of financial instruments will be at fair value.

Just saying.

I know lots of companies that do their accounting on FIFO but report a non GAAP LIFO gain lol... they do it to padd earnings tho

[Ichiran]

Originally Posted by Fat_ninja

I know lots of companies that do their accounting on FIFO but report a non GAAP LIFO gain lol... they do it to padd earnings tho

I'm not that familiar with US GAAP but I think LIFO is allowable under the US GAAP, and must be consistently applied. Not allowed for IFRS though.

[Humble michael]

Originally Posted by kans86

Perhaps it is not just simple as that. Maybe there are some sentimental values attached to the watch so you do not want to sell it. Or if you are offered 50k, but you think the market price may rise to 100k, then you do not want to sell it now. So there maybe more factors to consider here.

Doesn’t matter why , that wasn’t the question posed . You just proved my point- if you were offered 50K ( which we are bc that seems to be market) and turn it down you just bought it for that piece. Ha!

[Fat_ninja]

Originally Posted by Ichiran

I'm not that familiar with US GAAP but I think LIFO is allowable under the US GAAP, and must be consistently applied. Not allowed for IFRS though.

IFRS changes bringing back on capitalize leases if I remember... ...was this past year... let’s not kid. I have no idea what I’m talking about

[Ichiran]

Originally Posted by Fat_ninja

IFRS changes bringing back on capitalize leases if I remember... ...was this past year... let’s not kid. I have no idea what I’m talking about

Yours is the way of the shuriken.

[Bearxj86]

Originally Posted by Fat_ninja

I know lots of companies that do their accounting on FIFO but report a non GAAP LIFO gain lol... they do it to padd earnings tho

Lower of cost or market and FIFO/LIFO/AVerage cost can be done at the same time.

Say your accounting convention is FIFO; you will bring in all your Aquanauts at cost but sell them first in first out. However each period if the net realizable value goes below that recorded cost , you have to impair it. That is called the “lower” part of Lower of Cost or Market or “LCM”. Net realizable value is market price less cost to sell.

LCM just prevents people from leaving crap at inflated values on their balance sheet that will be sold at a loss. It makes you take those losses immediately. You have to apply it whether you are using LIFO or FIFO.

[scarlet knight]

What was the retail price recently? Like $25k? One good recession away from going back to $25k. I will not massively overpay for a “hot” watch. I have a few that were not hot when I bought them, now unobtainable.

[Fat_ninja]

Originally Posted by bearxj86

Lower of cost or market and FIFO/LIFO/AVerage cost can be done at the same time.

Say your accounting convention is FIFO; you will bring in all your Aquanauts at cost but sell them first in first out. However each period if the net realizable value goes below that recorded cost , you have to impair it. That is called the “lower” part of Lower of Cost or Market or “LCM”. Net realizable value is market price less cost to sell.

LCM just prevents people from leaving crap at inflated values on their balance sheet that will be sold at a loss. It makes you take those losses immediately. You have to apply it whether you are using LIFO or FIFO.

U threw out too much for me... I’m ur dumb mo guy :)

[chmhill]

USA price is 30'620 USD now.

Originally Posted by scarlet knight

What was the retail price recently? Like $25k? One good recession away from going back to $25k. I will not massively overpay for a “hot” watch. I have a few that were not hot when I bought them, now unobtainable.

[Calatrava r]

New at MSRP yes. Used at twice that or more, no way.

[cascavel]

Originally Posted by kans86

Perhaps it is not just simple as that. Maybe there are some sentimental values attached to the watch so you do not want to sell it. Or if you are offered 50k, but you think the market price may rise to 100k, then you do not want to sell it now. So there maybe more factors to consider here.

If you really thought the price was going to $100K, and you didn't own one, why wouldn't you buy one at $50K or $60K. If you own one and believe the market price is going to drop from $60K to the point where you could buy one back at $30K why wouldn't you sell it? Maybe laziness.
In reality, since no one has perfect knowledge of future prices, you hang on to the watch because you believe it's worth owning it at the current price. Which, as James272 points out, is the same as being willing to buy it at that price.

[Humble michael]

Originally Posted by cascavel

If you really thought the price was going to $100K, and you didn't own one, why wouldn't you buy one at $50K or $60K. If you own one and believe the market price is going to drop from $60K to the point where you could buy one back at $30K why wouldn't you sell it? Maybe laziness.
In reality, since no one has perfect knowledge of future prices, you hang on to the watch because you believe it's worth owning it at the current price. Which, as James272 points out, is the same as being willing to buy it at that price.

Exactly

[kans86]

Originally Posted by cascavel

If you own one and believe the market price is going to drop from $60K to the point where you could buy one back at $30K why wouldn't you sell it? Maybe laziness.

I did think about this but was lazy to type long. My fingers get tired typing on a mobile phone.

[007timer]

Not a chance. But you are probably wondering...who the hell is paying the asking prices?


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[V25V]

This thread has gone full short bus.


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[The Argonaut]

Simple question jumps the shark. If ever there was a classic case of a simple question being turned on its head and screwing itself into the ground, this is it. The only question is, do you want the watch? Not whether it’s an investment piece, heirloom, etc. There is no requirement to use advanced geometry or financial models to answer the question.

If you have the money, why not. It's a beautiful watch that has long held cult status for many, and it currently leading the charge in the bubble.

If money was no object, I'd pick up a 5711 or 12 no question. I'd also keep it.


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[RobearH]

If I had he cash it would because I followed the same principles I follow currently...”Never Over Pay For Anything”!

Besides if I had the cash I would probably be able to have spent enough to earn on at MSRP from and AD...just like I have done with Rolex. JAT

[aa909]

No not for a 5711. I'd buy a new 5712r if offered that price but that's not happening in today's market

[CamSLC]

:(

This thread exposed me to my personal endowment effect.

[pusherv]

H E double hockey sticks NO