Rolex- the stupidest, lamest company

[Tango]

Now that is fantastic! First class move going for the Sea Dweller

 

[akrifleman]

I don't get why everyone calls a Rolex an investment. I could annually buy 90 years worth of GShocks to purchase the entry level Rolex. I guess I'm confused on how buying a watch that barely keeps up on inflation would justify passing investing $5-10K elsewhere....

 

[CZDiesel]

I don't get why everyone calls a Rolex an investment. I could annually buy 90 years worth of GShocks to purchase the entry level Rolex. I guess I'm confused on how buying a watch that barely keeps up on inflation would justify passing investing $5-10K elsewhere....

It’s true they are a solid investment but it’s not just Rolex but most of the luxury watch market though primarily driven by Rolex…
And though I own several Rolex watches I‘ll still take my Omegas!

The Secondary Market for Luxury Watches Has Outpaced the Stock Market Since 2018

Used luxury watches like Rolexes have outpaced the stock market, appreciating in value more than the S&P 500 since 2018.

robbreport.com

 

[akrifleman]

It’s true they are a solid investment but it’s not just Rolex but most of the luxury watch market though primarily driven by Rolex…
And though I own several Rolex watches I‘ll still take my Omegas!

The Secondary Market for Luxury Watches Has Outpaced the Stock Market Since 2018

Used luxury watches like Rolexes have outpaced the stock market, appreciating in value more than the S&P 500 since 2018.

robbreport.com

Compared to wine and art? How about the return on say... Amazon? That is far more than 20% annually.

 

[CZDiesel]

Compared to wine and art? How about the return on say... Amazon? That is far more than 20% annually.

I’m not saying they are the “best” investment, but as I said they are a “solid” investment… Sure there are better, in 2015 I bought a bottle of 20yr Pappy Van Winkle for $160. They now sell for over $5000 on the secondary market!
So yes there are clearly better investments, but I can’t daily wear my bottle of Pappy and as soon as I open my bottle the investment ends…

Cheers!!!

 

[Daisy]

I don't get why everyone calls a Rolex an investment. I could annually buy 90 years worth of GShocks to purchase the entry level Rolex. I guess I'm confused on how buying a watch that barely keeps up on inflation would justify passing investing $5-10K elsewhere....

A 10k investment you wear and enjoy for 10 years then sell for 20k? I would take some more or those investments.

 

[gbflyer]

My profits from buying and flipping Rolexes within 24 hours during the 2010-2014 era paid for a lot of safaris, and diapers, and dinners.

It was a grand time.

Its one of the best alternative investments you can own. For me, virtually all of my alternative investments have outperformed the markets. Unlike stocks and bonds, I get to wear my rolexes, shoot my London bests, and take my doubles on safaris. If I choose to sell them, I beat the market and got to enjoy a tangible, appreciating asset for a period of time.

This isn't meant to be a snark or dig at you or any other person, just a frank warning to any reader. If you have a bad read on tastes and market preferences, don't buy anything thinking you're going to make money on it, call it a total loss. I don't operate that way in my life and it has allowed me to live a bigger life than my financial means would otherwise permit. But there are limitations, I can't always stomp my feet and buy "what I want" I need my preferences of what I want to also be backstopped by what I believe the market's future wants are as well.

People ask how I could afford more than a dozen safaris, and live in a lodge on 1300' of trout river, and have all my paid off cars, and am nearly debt free, and how I have so many toys. The answer is above: I don't make investment mistakes, the alternative asset classes and their trajectory has been obvious to me because I'm not stubborn and unwilling to "go with the market flow" in the areas that interest me.

Well done Rockefeller.

 

[akrifleman]

A 10k investment you wear and enjoy for 10 years then sell for 20k? I would take some more or those investments.

I wouldn't. That's a pretty poor return over 10 yrs. There is a reason stores mark stuff down after six months... cash flow makes money. Appreciation doesn't. If your moving stuff like rookhawk said, you can make some. Luxury items are a rough business. Some do well with it, but those guys are turning product over much quicker.

 

[CZDiesel]

I wouldn't. That's a pretty poor return over 10 yrs. There is a reason stores mark stuff down after six months... cash flow makes money. Appreciation doesn't. If your moving stuff like rookhawk said, you can make some. Luxury items are a rough business. Some do well with it, but those guys are turning product over much quicker.

You’re overlooking the “wear and enjoy” part! How useable items can you say that about?

 

[akrifleman]

You’re overlooking the “wear and enjoy” part! How useable items can you say that about?

I have too many collectable guns to miss that point. I'm sure they'll all be worth more someday than what I paid, but I don't really think of them as investments. But, I guess I don't understand watches, wine, whiskey, and cigars either. I'd much rather drink and smoke my favorite scotch and cigars. I guess I don't know how to enjoy a watch as much as a damn fine set of boots or a rifle.

 

[Jefferry404]

Perhaps an alternate view of a Rolex purchase is it is an asset:
"a useful or valuable thing"

 

[Daisy]

I wouldn't. That's a pretty poor return over 10 yrs. There is a reason stores mark stuff down after six months... cash flow makes money. Appreciation doesn't. If your moving stuff like rookhawk said, you can make some. Luxury items are a rough business. Some do well with it, but those guys are turning product over much quicker.

10% annual return on a luxury item you wear and enjoy. You’re just being silly now

 

[Daisy]

I have too many collectable guns to miss that point. I'm sure they'll all be worth more someday than what I paid, but I don't really think of them as investments. But, I guess I don't understand watches, wine, whiskey, and cigars either. I'd much rather drink and smoke my favorite scotch and cigars. I guess I don't know how to enjoy a watch as much as a damn fine set of boots or a rifle.

Easy. Do both!

 

[Inkgardener]

My best friend bought a Daytona for $16k (MSRP) off the waiting list (9 mos.) Tuesday and sold it for $31,500 today. For the reasons mentioned above, he didn’t want to pass on it and not get the call in the future.

My financial advisor would probably tell me doubling my money overnight is an OK decision. Find me a safer way to do it than a new stainless Rolex sports watch and I’m all ears.

You don’t have to work for the game, you can make the game work for you.

It appears I need to reorganize my investments.

 

[JoninCO]

Can’t do it every day, but once or twice a year could pay for some big safaris.

 

[rookhawk]

Speaking of, if anyone wants to buy my Rolex Hulk, all box and papers, AD dealer receipts, hang tags, shipping boxes, etc, I think I’m game. Send a PM. It would Pay off 1/3rd of my remaining debts and I’d just wear my two-tone blue sub. It looks like the market is $22.5-$26k presently. I’d sell for wholesale.

 

[375 Ruger Fan]

10% annual return on a luxury item you wear and enjoy. You’re just being silly now

It's not 10%. Doubling in 10 years is 7%, compounded annually. Other than that, I agree with your comment.

When I was a teenager, my dad bought a used Piper Comanche (single engine, retractable gear airplane). We had it for 4-5 years and took many, memorable, grand family adventures in it. Most people would consider it a bit on the extravagant side to own an airplane. When my sisters and I neared college time, the plane got sold for about twice as much as the purchase price. However, owning a plane is more like owning a horse than a Rolex. Even if you don't use the plane, insurance, hangar fees, inspection fees, etc still occur. At least a Rolex doesn't have those type of costs associated with it.

 

[Daisy]

It's not 10%. Doubling in 10 years is 7%, compounded annually. Other than that, I agree with your comment.

When I was a teenager, my dad bought a used Piper Comanche (single engine, retractable gear airplane). We had it for 4-5 years and took many, memorable, grand family adventures in it. Most people would consider it a bit on the extravagant side to own an airplane. When my sisters and I neared college time, the plane got sold for about twice as much as the purchase price. However, owning a plane is more like owning a horse than a Rolex. Even if you don't use the plane, insurance, hangar fees, inspection fees, etc still occur. At least a Rolex doesn't have those type of costs associated with it.

That’s using financial planner math, which is a bit deceiving. That is comparing to putting money in an investment account and not comparative to equity investments like real estate that don’t pay a rate of return.

 

[Rimbaud]

Some years ago, a small, but respected, investment firm did a broad study to identify the best performing investments. The top investment was not a stock, or even a commodity like oil, but a baseball card. In this pre-Uber era, a NYC taxi medallion came up second or third. If memory serves well, emerging market debt (or stocks), outperformed US equities. I know a lot of guys who make their living in markets enjoy collecting art, and watches - and not just for the reasons that seem common. These people are attracted to markets that they can control, and that are not regulated by SEC. They buy art, warehouse, market the artists, and sell into the market they create. Same is true for some watches but the prices pale in comparison to a Basquiat, or whatever else. Lots of talk these days about if investors can afford to be illiquid, ie, warehouse stuff and let the value come out in a decade or so. Is Rolex doing some of all that? Wouldn’t be the least surprised.

 

[375 Ruger Fan]

When I was in high school in the 70s, I worked at an auto parts store. I asked the owner for some advice on how to be successful in business. He picked up an auto part and said, "You see this? I buy it for $1 and I sell it for $4. I do pretty well with 4% mark up."