💸 #0061 - Would you wear a 50% return?

How a watch beat your portfolio.

Would you wear a 50% return?


LIGHTNING ROUND

💸 Inflation vs returns: From 2020–25, inflation ran +25% while traditional portfolios barely kept up.

The twist: Steel sports watches gained 40–50%, with Knight Frank showing +52.7% over 5 years — ahead of wine, art, and bags.

🔥 Why it works: Limited supply + endless demand = scarcity premium. Wealthy buyers treat watches as hard assets + status symbols.

📉 The dip: Prices dropped ~25% after 2022’s peak, but top models still sit above pre-2020 levels and the market is stabilizing in 2025.

📝 The playbook: Stick to iconic models, buy at retail or trusted dealers, expect 10–20% spreads, and always authenticate.

 
WEEKLY WISDOM

“Without collectors, there are no investors. ... Once demand is increased, in come the investors.”

—Mike Shanlikian

INVESTING TIPS & OPPORTUNITIES

The Watch That Beat Your Retirement Account

You’re playing a rigged game.

You work hard. You save diligently. You max the 401(k).

But is that enough?

Playing safe gets you by, but never free.

Inflation is compounding against you.

Taxes are compounding against you.

Time is compounding against you.

And the kicker?

Even when you win, you lose.

The market goes up 10%, inflation takes 8%.

Your “growth” is just running in place.

Meanwhile, the wealthy are playing a completely different game.

They don’t measure wealth only in brokerage statements.

They store it in assets you can touch, and pass down.

Buy Time… Literally

From 2020 to 2025, inflation jumped 25% while a balanced portfolio barely kept up.

Meanwhile…

A stainless steel Submariner climbed 40–50% in just five years.

Not a meme, not crypto, not a lottery ticket.

A watch. On your wrist. Outpacing your retirement account.

The Economics Behind the Hype

Luxury watches aren’t just accessories.

They’re hard assets with scarcity baked in.

Only so many are produced each year. Demand from the wealthy far exceeds supply.

That imbalance drives premiums above retail, even in downturns.

Knight Frank’s Wealth Report shows watches returned +52.7% over the last five years, outpacing fine wine, art, even Birkin bags.

Sure, there was a correction of ~25%. after the 2022 mania.

But guess what? Even after that, the right references still sit well above pre-2020 levels.

When markets wobble, the world’s scarcest assets hold value.

The Frustrated Middle

Right now, most investors are stuck.

They’ve built a respectable net worth.

But it doesn’t feel like enough.

Cash loses value by the day.

Markets give with one hand, take away with the other.

And it feels like there’s a secret playbook you were never handed.

This is it.

Turning cash into assets that work double duty:

  • Status today.

  • Wealth protection tomorrow.

What to buy, What to avoid

Watches are not “splurges” or impulse buys.

Think of them as wearable wealth storage.

The practical rules are simple:

  • Stick to the iconic, liquid brands.

  • Focus on timeless steel sports models with deep secondary markets.

  • Buy at retail allocation if you can — or below fair value through trusted dealers.

  • Always authenticate. Expect ~10–20% spreads, but liquidity is strong.

Play it right, and you’re not “buying a watch.”

You’re reallocating capital into an asset class that’s outperformed traditional markets in certain five-year stretches — and one you can hand down as a legacy.

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The content provided in this newsletter is for informational purposes only and should not be considered as specific advice for any specific individual. The information is prepared by knowledgeable individuals and is not written by certified tax professionals or investment advisors. For personalized advice tailored to your unique financial situation, consult with a qualified tax professional, financial advisor, or attorney.

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