Please see commentary from Chief Investment Strategist, Richard Gluck, on May 11th 2020.
- I’ve seen the following ad embedded in a daily email I receive from Bloomberg. The accompanying chart is above. It’s a come-on for buying art as an investment. Worse, it’s for fractional shares. You don’t even get to hang it over your mantle.
- With $65B/yr in sales, it’s no wonder that so many high-profile CEOs and founders invest in art. With big data, only one company is positioned to capitalize using a revolutionary fractional ownership concept that lets you buy and sell shares just like stocks. Act fast and skip the 25,000+ waitlist.
- My Spin: Don’t do it. Do click through to the site. It’s worth a look. The eye candy is great. Yes, the artists they list have seen their art appreciate. The problem is that it is a wonderful example of both hindsight and recency bias. Hindsight bias because they have selected artists whose work has appreciated. You’re supposed to pick the stuff ahead of time, not using the rear view mirror. Recency bias because the selected artists have done well recently. Maybe in fifty years they will have kept appreciating. Maybe not. Tastes change. Long term, art has not been a great investment. I wrote about collecting in “Collecting Is Not Investing“. Click through. It’s a great post. Trust me, I know the author.