Watch4Steve
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Another angle...
I struggle a lot with granting myself "permission" to spend crazy money on watches. I too am very fortunate to be financially able to do it and still meet my commitments to my family, but I still question whether it's "right". It really is a somewhat embarassing luxury from a purely practical standpoint. My wife and I started with literally nothing and made a lot of sacrifices to get where we are, so this kind of consumption isn't in my DNA. However, I have always appreciated quality, craftsmanship and beauty and when I caught the watch bug I fell hard!
As much as I truly enjoy them and have no investment aspiration at all attached to my collection, it does help me feel better about moving forward buying a watch if I believe I am getting a good deal and that I will be able to recover a good percentage of the funds if I sell.
A couple things that haven't been mentioned yet:
- Will you be comfortable wearing a watch that costs this much? I have seen some people get a "grail" watch only to be paralyzed into not wearing it for fear of damaging it or having it stolen.
- For a complete financial analysis you have to consider maintenance and other holding costs as you own it. Insuring a piece like that will be expensive and sending minute repeaters in for maintenance is probably a five-figure hit every 5 years or so.
Great discussion, guys!
Steve
How do you know when you can afford a 5078
Its been a lifelong dream of mine to own a PP MR. I have owned some nice patek complicated pieces in the past but nothing quite at this level of commitment. Now I am back to daydreaming about the 5078, the ultimate combination of timeless beauty with the ...
Savor the expectation
Dionigi, On a practical level, while you may well be able to afford the purchase with respect to cash flow, 7-8% of net worth is too high for my taste. Emergency needs arise, tuitions inflate faster than everything else, and disability insurance is never ...
this is a decission you need to make on your own
You're talking about 7-8% of your net worth. I'm probably the biggest moron on this forum. Believe me or not but for me almost everything goes into this passion. As long as I can pay my bills every month I feel safe to spend the rest. 10K on my bank accou...
Depreciation
Well Bruno - thanks for your comments. I totally understand your passion. With regards to the fear of potential loss upon resale, I can tell you it doesn't bother me that much. I recently lost a similar amount on selling a silly sports car (unfortunately ...
I am with Bruno...
Well Bruno, I guess WE are the biggest fools on the forum. I am in the same camp as you and as long as my bills are paid, I put the rest of my money towards my passions. I don't golf, smoke, or drink fancy wines so watches do it for me. I also live in NYC...
It's like marriage mate
Do you promise to forever love and cherish the 5078, till death do you apart? If answer is yes, then do it. Especially since you are not perturbed by depreciation, which in reality is like paying a lump sum settlement should you divorce. Just buy it, in y...
LOL, don't know if I can take that vow
If my past behavior is an indicator I am not sure that I could vow love for life for a 5078. It all seems wonderful in the mind but you don't really know until you live with it, right?! This message has been edited by Superquant on 2010-12-04 10:21:32
On the contrary, I think I could
Although I agree it is hard to know if attachment is long term or not without going through daily life together
to buy or not to buy
this is a very difficult decision to make - because purchasing the MR now has considerable opportunity costs because of the very high price tag. the 5078 is in the $600k USD if I am not mistaken. So you forego what that $600k would have made had you inste...
Not quite that expensive
Andy, the 5078P I am looking at is about 340k, about 10% off list. I am not getting it directly from AD but rather from a trusted secondary source. To be honest I'm not into dealing with an 'application' process for spending this kind of money, it all see...
Pay back your debts first, than Count De Monet and see. Regards Moritz
No message body This message has been edited by COUNT DE MONET on 2010-12-04 12:41:50
I don't agree that one must be debt-free in order to consider luxuries
While I agree that one should be financially prudent when it comes to luxuries, I do not believe in the one dimensional view that all debts are bad and therefor must be satisfied before indulging in extraneous expenses. Even in the case that I were not co...
It's a good thing Susie Orman isn't on the forum.
None of this really makes any sense, but it's not about making sense. It's about what you want and you say you've got the money to do it, but is it the responsible thing to do? I don't hardly think the kids will starve, not go to college, etc. You're a yo...
Options
I think there is some truth to your comment about 'the stars lining up' - the 5078P is available, it is the most 'affordable' grand complication from PP that includes a MR, and it also happens to be one that looks wonderful and has a case size that I like...
A lot of discretion
She is not that amused by the idea but she has enough faith in me that I will be there to provide whatever is necessary for our family, as I have always done. I am fortunate to have a lot of discretion in these kinds of things. Truth is that this purchase...
Another angle...
I struggle a lot with granting myself "permission" to spend crazy money on watches. I too am very fortunate to be financially able to do it and still meet my commitments to my family, but I still question whether it's "right". It really is a somewhat emba...
Manufacture costs
Regarding the cost of manufacturing the watch, that MSRP takes into consideration manufacture costs + research and development + facility costs + overhead, etc. I bet Patek spent more than 300k researching and developing the parts and movement for that wa...
So why does MR from other firms cost 1/3 of PP
All true and well known, manufacturer has to amortize their R&D costs and all the rest. However, so do other firms. It still begs the question of what the true additional costs are that PP incurs to make their MR vs JLC, VC, etc to make it that much more ...
I'd love to be a fly on the wall
when Patek Philippe has a discussion on how they will price their pieces. I am sure one of the considerations for Patek pricing is the robust demand for the Patek MR's ( many more people have the money and want to buy a Patek MR than they produce yearly )...
Interesting thread............
With many different response's being generated. Unfortunately I have the same mindset as Bruno & mjn, and echo their sentiments, but I can also see the otherside of the discussion. Having read your various replies, the vibes that I am getting from you. Is...
Day dreaming indeed
You are right - this is probably fantasy land in my mind. I guess if I could truly afford a watch of this level I would not be sweating the details to such a degree and if I truly loved it I would just get it. So this is probably a sign for me to chill ou...
Quite interesting thread!
Hi, I too find this thread to be quite interesting. I was a bit worried first as we don't discuss value here, as per forum rules, but the way it has been proposed and answered is IMHO quite acceptable. I understand your question as I have to admit I'm ask...
If you permit me......
an advice...... You have been after the 5711 for some time and you seem to be also seduced by the 5170.... I made a mistake once buying a watch that was generally great and quite interesting but, at the end of the day, not the watch for me for several rea...
Human conscience
I agree that this is a great thread, that is applicable to almost any watch purchase, relative to the purchasers economic status and liabilities. The amount of money that the purchaser intends to spend will not cripple their current lifestyle or prohibit ...
That is why I got myself this
Off topic but on your subject of 'rewarding oneself', upon a nice return from one of my private equity investments I splurged on this toy....
No issues
Got it sorted out a few months ago with that recall .. been all good. But it does make you really wonder about 'value' of these timepieces: Patek 5004 or 458?!
hmmm probably 5004.
The reason I say this is because I live in NYC and where could I really drive the 458? Not to mention parking the car and fears of dings/dents/reckless people. At least with the 5004 I can tuck it under my shirt cuff while on the subway or taxi. I never r...
looking back
Looking back, now at 60, I see that money is far better to be invested for the future and then reap the benefits of wise investments later in life. The "opportunity cost" of luxury goods bought early in life is very substantial and can really deplete one'...
I hear you - I'm passing on this watch
Especially at this level of expense there is a big opportunity cost involved. I've decided to hold off and look into a more modest timepiece, just feel like it would be too stressful to have a single luxury item that is so expensive. I'm not there yet, ma...
