remarque
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money and watches... random reflection on the hobby
Nice watches are luxuries, and are not inexpensive. Given that I enjoy watches as a hobby, and my watches are not/will never be investments nor "investment grade" (!), is there such a thing as "responsible" participation in this hobby?
Consider this: Random internet searches suggest that one should have accumulated in savings at least six (6) times one's annual income by age 50, in preparation for retirement. Of course, this figure will vary if one retires at age 65 rather than 75, but one gets the idea.
And given this figure, what is a "reasonable" dollar value in all one's watches to have spent as a percent of one's savings at the same point of life?
If one has $25,000 in watches (actual total purchase prices spent), and one also has saved $100,000, then one has 25% of one's savings in watches, which I would argue is quite irresponsible. If one has $250,000 in savings, then one has 10% of one's savings in watches, which also seems irresponsible. But if one has $1,000,000 in savings, then one has only 2.5% of one's savings in watches, and if one has $2,500,000 in savings, then one has only 1% of one's savings in watches. Clearly, this 1% value does not appear irresponsible at all.
Where is the line in the sand? It is in interesting exercise to think in these terms, because one Patek Phillipe watch can cost $25,000 to $100,000 or more, and if one has only two Rolex watches, well, depending on the model, one has already spent circa $15,000 to $25,000 for only two watches, possibly more.
Of course, anyone can spend one's money however he/she chooses. But given that most watches do not retain value, let alone increase in value; watches as a hobby should be a source of pleasure, not a financial burden (short or long term); and there are transaction costs to selling watches should one need to (time, money, etc), how many others have thought about their watch collections in these terms?
I have just had these thoughts of late, for no particular reason, and can happily report that personally, my watch:savings ratio percentage is fortuitously 1% [numbers above do not apply 
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money and watches... random reflection on the hobby
Nice watches are luxuries, and are not inexpensive. Given that I enjoy watches as a hobby, and my watches are not/will never be investments nor "investment grade" (!), is there such a thing as "responsible" participation in this hobby? Consider this: Rand...
I must agree.
And I know that rare and wanted watches are also very bad investments. We are victims of very clever marketing. I got a real wake-up-call when Patek decided to increase the prices of two Nautilus model suddenly with 20%. Reason was that they are so "wante...
I'm with you.
The behaviors of the industry have sucked the fun out of collecting. Too much bland regurgitated nonsense and too much speculation that the brands have either encouraged or not managed properly. More fun to have great times with the family. I'm starting t...
Go where your heart tells you to go, not where your wallet tells you to go.
If my choices are winning choices, good, if they aren't, no problem. Now, if you start to wonder if your watch will keep its value, you should consider other playgrounds. I prefer to live my passion. Best, my friend. Nicolas
I agree with you, my friend!
I would argue that not living life to the fullest is a more irresponsible decision than anything you could do financially. After all, you can’t take it with you and no one ever wrote on their grave stone “Gee, I wish I’d worked harder!”. So here’s to pass...
”I spent half of my money on booze, gambling, women, and watches...
The Other half I wasted.”
You could apply your logic to anything else in your live
i get the point in not over spending, but you only live once. Calculating everything spoils all the fun, not only with watches. Dirk
Of course! My point is not to spoil anyone's party, but to put acquisitions, watches or yes anything of luxury status, in a different light. Doesn't hurt, may help.
The choice is mine, yours, etc. Always buy what you love, and don't buy/settle if it won't give you pleasure and satisfaction. Don't buy poor substitutes, ever...
Does this also apply to wives and girlfriends?
And especially for those among us who have both concurrently (present company excluded of course)
I do not add watch value to my net worth for this reason.
They are expenses. What you get back from selling is a bonus.
Well
I will have no money at all if I ever go to retirement, only WATCHES, WATCHES and finally WATCHES. Am I irresponsible??? Cheers, Adam
counter-calculation
My situation is somewhat different from yours. Let me explain. My only income consists of about $300,000 I receive each month (tax-free - PM me if you are interested) as donations from the members of the religious community I founded. I use this money exc...
Here's a way to calculate the financial responsibility of your watch hobby.
Don't look at the total value of the watches in relation to your net worth or net income. First, look at the watches as a hobby-experience purchases with discretionary income . You probably have a better understanding of your sustainable non-essential exp...
My brother in law was extremely frugal.....
rarely took much of a vacation, didn't splurge on anything for him or my sister and everything was going for their retirement. He died of stomach cancer at age 48.
My grandfather was the same way
Very frugal, very disciplined, very honorable man. Lived to 98 and left millions in the bank - but you’d never know it, he chose to live out his golden years in a trailer in Florida. If I could have known one person better in my life, it would have been h...
This thread is so long I need another drink to get through it!
If I have $250k in watches and my desired watch/wealth ratio is 5%, how much of a car collection can I have on $300,000 a month? And can I afford to continue drinking French bubbly? I’m already thirsty again. Cazalea ...
All well and good this saving and spending..
But there's something unquantifiable about the whole experience that I took into consideration with regard watch spending.. and that is you have to get it at that time in your life when you can most enjoy it.. and it is usually now. What's the use of a ni...
You only live once.
Dealing with death and cleaning up after them made me realize you come empty handed and will leave the same way. Just save and spend responsibly. It's not necessary to leave every cent behind.
Maybe it is irresponsible but many people spend a high % of their disposable income on worse things.
Top of the list of horrible use of $ are cars and boats. If watches keep you from overspending on those two luxuries then you'll be better off in the long run.
