Luxury watch fund?
I’ve been a lifelong fan of watches. Lately, it’s become trendy to buy them as investments or flip for profit. To test this theory, I purchased $10k of watches at what I considered good prices. They all sold within 24 hours and at around a 15% margin. Since January, I’ve bought and sold around $45k of watches and have profited about $6k.
Desirable models can appreciate in value more than the S&P and with less pricing volatility. Sure, a watch isn’t as liquid as a public equity but they aren’t exactly difficult to sell and the right ones tend to consistently outperform the market.
In theory, couldn’t someone start a watch fund and manage it like any other investment fund? Take a management fee and a % of gains above 8%? I personally know people who are filthy rich from managing a personal portfolio of luxury watches. A dedicated fund doesn’t seem that far out to me. Could be a handful of strategies: flipping (like day trading), buying certain watches to hold while they appreciate, and even asset (watch) backed loans.
Just start a jewelry store and be aggressive in grey market purchases
Probably more viable but less fun haha
The problem is that institutional money is way too big for the luxury watch market. This means that most asset managers would not even consider starting a luxury watch investment fund as it is not scalable.
For wealth managers on the other hand, investing in luxury watches is a viable alternative as wealth managers manage assets of individuals and families (which signifies a way lower AUM compared to institutions).
I think the luxury watch market could easily sustain a $100 million+ fund. I do see your point though for sure.
Look up 'thewatchfund' - although looking at the website, having someone be appointed 'watch expert' by Brunei doesn't inspire too much confidence. Might end up as an American Greed episode.
Where are you buying from and how do you verify that they’re authentic?
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