Show me the Monet!
I do love these “what if” stories that compare the art market and stock market. Here are some of my – what ifs? What if I bought an Andy Warhol in the early 60s for $1,000? What if I bought a Basquiat for $25,000 in 1982? What if I bought Bitcoin when it first came out? Well, if I did all that, who cares what the stock market did! I would probably be sitting on a beach in Tahiti sipping piña coladas.
Of course, we could ask: what if I bought Pets.com for $11 during its IPO? I would have nothing since it went into liquidation less than a year later. Or, what if I bought Groupon at its IPO price of $20 per share in 2010 … they would be worth $4.64 today — not very good.
And finally, what if I went out and bought a bottle of Screaming Eagle Cabernet Sauvignon, 1992 for $500,000 and then drank it with a group of friends? I would have nothing but the memory and an empty bottle!
If you must look at art as an investment then consider it an alternate place to park some money … just like you have a bank account, a checking account, CDs, Bonds, and various stocks. Some are always going to have better returns than others.
In the end, James Tarmy’s article on Bloomberg makes for a fun read.
Source: Does Monet Beat the Dow? How Artworks Perform as an Investment – Bloomberg
What If?
Show me the Monet!
I do love these “what if” stories that compare the art market and stock market. Here are some of my – what ifs? What if I bought an Andy Warhol in the early 60s for $1,000? What if I bought a Basquiat for $25,000 in 1982? What if I bought Bitcoin when it first came out? Well, if I did all that, who cares what the stock market did! I would probably be sitting on a beach in Tahiti sipping piña coladas.
Of course, we could ask: what if I bought Pets.com for $11 during its IPO? I would have nothing since it went into liquidation less than a year later. Or, what if I bought Groupon at its IPO price of $20 per share in 2010 … they would be worth $4.64 today — not very good.
And finally, what if I went out and bought a bottle of Screaming Eagle Cabernet Sauvignon, 1992 for $500,000 and then drank it with a group of friends? I would have nothing but the memory and an empty bottle!
If you must look at art as an investment then consider it an alternate place to park some money … just like you have a bank account, a checking account, CDs, Bonds, and various stocks. Some are always going to have better returns than others.
In the end, James Tarmy’s article on Bloomberg makes for a fun read.
Source: Does Monet Beat the Dow? How Artworks Perform as an Investment – Bloomberg