Whilst talking with friends this week about the current financial markets, I was reminded of a quote which really strikes at the heart of why I became involved in the collectibles business...
"Only buy something that you'd be perfectly happy to hold if the market shuts down for 10 years" - Warren Buffet
In fact, the quote comes from the legendary investor himself, Warren Buffet - and that means it's worth serious consideration. After all, there's a reason why he's the world's third richest individual, nicknamed the 'Sage of Omaha'.
Buffet has always found a way to unite his love for life with his business dealings. After all, combining your own personal passions with sound investments is what the collectibles markets are all about.
Personally, I love the sheer thrill of holding an important historical item, or finding the final piece of a lifelong collection for a client. But that's not all. These assets are tangible as well as valuable, with uniqueness and history that can offer you years of pleasure.
Even better, collectibles can also bring you better financial returns than stocks, shares or even gold. This has been proven time and time again...
Earlier this month, we reported on the sale of a beautiful 1963 AC Shelby Cobra. It was originally found hidden away in a barn and bought in 1981 by a collector for $30,000 in gold coins.
Now, given that gold prices have steadily risen over the years, those gold coins would today be worth $93,730. That's more than triple their original value.
Yet here's the thing: the 1963 AC Shelby Cobra - only the fifth example ever produced by its British manufacturer - was sold at auction for a very impressive $467,500. More than 15 times the price paid in 1981!
And it's not just classic cars that are out-performing traditional investments....
I've been talking about the wine markets a lot in recent weeks. And they're showing no signs of slowing down, after a remarkable year in 2010 in which they beat the equity markets hands down.
A report by the Money Observer showed that, last year, most vintages saw an increase of between 60% and 100%. Compare this with the FTSE 100 which rose by 9%.
With sales of more than $27m already in 2011, industry experts from the The Wine Investment Fund (TWIF) are estimating a rise of around 21% for their fine wine index this year. If this same prediction was made about the FTSE 100, you wouldn't be able to move for empty champagne bottles in financial districts across the globe!
Over the last couple of years I've seen so many people begin to change the way they think about their investments - from seeing them simply as figures on a screen that could go up or down, to looking for more pleasurable ways to both increase and enjoy their money.
High net worth individuals around the world are embracing collectibles - and maybe it's time you followed suit.
All the best, until next week
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