Let's dream up a scenario of a the world's best magical car fund. You want an investment that not just gives you a great return, but also a 2x usable, verifiable collateral on hand from day one. You invest say, USD$1,000,000 with the car fund and they give you a super-car to the lines of a Ferrari / Lamborghini / Zonda retailing above USD$2,000,000 immediately. You bring it home. It sits beautiful in your garage. You put the top down and take pictures with it. The person next to you kisses you on the lips. You're careful not to ding it. Before the year is up the magical car fund calls you up to give you an offer to sell the car at 20-30% net. You can choose to take the cash profit, pay a close-out fee to keep the car or reinvest the principal and profit to get an even more bad-ass super car. This would be the world's best investment fund.
The Watch Fund is the second best.
In exactly 1 year from now, you draw out $252,500 - only to find that coffee has gone up by just 10 cents and inflation has beaten you once again.
The Watch Fund - you would be expecting at typically 20-30% (that's more than TEN TIMES more returns) and we didn't just give you a water-bottle or a piece of paper - we gave you watches retailing at $500,000 or more.
Why should you invest The Watch Fund? Maybe the question is: Can you afford NOT to?
Category 1. Queue-cutting watches (we use connections and prior knowledge to order watches before they hit the market)
Category 2. Extreme limited editions (most of these pieces are allocated to VVIPs, most of them being watches that typically money can't buy. It's about access.)
Category 3. Provenance pieces(timepieces previously owned / worn by royalty, historical figures etc. All are unique pieces e.g. Napoleon's carriage clock made by Breguet, Gandhi's pocket watch made by Zenith....)
Category 4. Price advantage category (Certain watches that we can get at prices below retailers' / distributors' cost. Take for example a grande complication boutique brand retailing at $500,000 - usually no discount at all â but we get it one or two pieces at an unheard of 70% discount)
1) Scratches can be polished by the original manufacturer, hence the investor can send the watch to the manufacturer or appoint The Watch Fund to assist him. This is done at the investor's cost.
2) Dings and dents require the replacement of the affected part. The investor must pay for the original manufacturer to replace the part. The investor may also choose to close-out the affected watch for the same 10% fee.
At the investor's own cost, there is optional insurance available for the watches.
1. Bank - you're holding onto a piece of paper with the numbers $250,000 on it. The bank closes down, your piece of paper is now worth zero.
2. Stocks, typical funds, bonds etc. - you're holding onto a piece of paper with the numbers $250,000 on it. The companies close down - your piece of paper is now worth zero.
3. The Watch Fund - you're holding onto watches from companies sometimes hundreds of years old and these watches retail at $500,000 or more :-) You've now just been holding onto a greater, more important collection for the next generation. You could also just wait the recession out and sell later.
Remember this though: Especially if you're a person with a lot of investable cash - there's really nothing else on your body you can spend serious amounts of money on, let alone invest in. Sooner or later, whether you like watches or not - you're going to be buying watches. It could be for yourself, your spouse, your children, your business partners... but why buy a $100,000 watch that will cost you $100,000 and will lose you money when you can buy a $200,000 watch for $100,000 that will make you money? The Watch Fund.
The minute one party is not happy - it's over for all of us. In that sense, we're a bit of a "limited edition" ourselves - once we cannot deploy your additional new funds comfortably, we'll reject your funds and you'll have to wait for a current investor to leave. The amount we could deploy for an investor changes from week to week - please contact us to get an idea of how much we can handle currently.
The sustainability angle is equally important though:-
In 1969, the Quartz watch was invented, ironically, by the Swiss â and that killed most of the worldwide mechanical watch industry. Master Watchmakers came home one day with no idea how to pay for their homes, their children's education â their futures. They all told their children one thing:
âDon't. Be. A. Watchmaker.â
In the decades that followed, skills were lost. Artisanal values were destroyed. Handwork and labours of love were drastically diminished. Although the watch industry in 2014 has more watchmakers coming out of school than 30 years ago, the top-level skills are still suffering because everyone still thinks buying a finely hand-crafted watch is just about âtelling the timeâ or âstatusâ.
It's not. You're preserving the craft. You're keeping artisans alive. You're honouring traditions. Remembering old world values. If we don't do this now â you're going to find that we'll end up spending a damn lot of money in the future for crappier watches. And that would be terrible.
This watch sold for 400% of it's original selling price after 9-years of ownership. USD$330,000.
The current version of this watch retails for about USD$60,000. This rare, possibly unique version is one of the most expensive wristwatches ever sold at auction - about USD$7m.
Gandhi's pocket watch with sandals, bowl, plate, glasses etc. USD$2.1m.