Where's Your Head At?: I'm Calling You Out

[aksingh]

Deep down I think everyone wants to pass the mythical AD test. If you were at a party chatting away with a guy or, god forbid a pretty girl, and she turned out to be an AD, could you fool them and more to the point could you feel relaxed around them and make normal conversation and normal hand gestures or would your sweat drip into your mouth and come out as Cantonese?

[Posh]

Deep down I think everyone wants to pass the mythical AD test. If you were at a party chatting away with a guy or, god forbid a pretty girl, and she turned out to be an AD, could you fool them and more to the point could you feel relaxed around them and make normal conversation and normal hand gestures or would your sweat drip into your mouth and come out as Cantonese?

Bwahahahahahahahaha! Cantonese? Bwahahahahahahaha!

Seriously, everyone does. And since the quality of certain replicas is superb, this has put the kibosh on ADs doing any authentication at the store level. Even the places that used to do them regularly stopped doing them, like Hermes; it was easy to spot a replica of the Birkin. But after OMAS, that stopped quickly.

The most notable watch brand that still does them is Patek Philippe, but only at their salons. They'll call you out fifteen minutes after you walk through the door.

[bobkat]

Disclaimer: I don't make frankens, just wear very accurate reps.

The answer to your question is simple for me. I could buy a 5k gen every month and not notice. But, instead I could take a short position or buy into a security for the long run, or angel on a startup. If it tanks, i dont notice. If my return is exemplary then i do. There is absolutely no reason to spend money (which is the only way to really make money) on something that brings you temporary pleasure. The same applies to my automobile. Sure I could buy a brand new 997 or I could buy an 09 for a fraction of the price, freeing up capital to make more of itself.

If someone had decided to own 6 reps instead of 6 gens, 25k could have gone into high risk high reward dndn at 4 bucks and offloaded at 40 a couple months ago. That's 250k that will never go to a gen.

[Posh]

Disclaimer: I don't make frankens, just wear very accurate reps.

The answer to your question is simple for me. I could buy a 5k gen every month and not notice. But, instead I could take a short position or buy into a security for the long run, or angel on a startup. If it tanks, i dont notice. If my return is exemplary then i do. There is absolutely no reason to spend money (which is the only way to really make money) on something that brings you temporary pleasure. The same applies to my automobile. Sure I could buy a brand new 997 or I could buy an 09 for a fraction of the price, freeing up capital to make more of itself.

If someone had decided to own 6 reps instead of 6 gens, 25k could have gone into high risk high reward dndn at 4 bucks and offloaded at 40 a couple months ago. That's 250k that will never go to a gen.

Uh huh. This is what I expected to hear, at least from the more well-heeled 'Geeks on the forum. But everyone's responses run the gamut. I personally can't imagine, and this may be because I work in financial services, why anyone would wish to tie up capital in any kind of luxury goods especially if you aren't a high net-worth individual, since so many many luxury goods are very expensive to own and maintain. If you do not have financial assets, not including your primary residence, exceeding seven figures, you do not need to be buying any luxury goods.

Bob, I like your moxie. LOL

[bobkat]

If you do not have financial assets, not including your primary residence, exceeding seven figures, you do not need to be buying any luxury goods.

Bob, I like your moxie. LOL

:-D. Completely agree with this. Complete waste of capital. Until its a fraction of a percent of total net worth it doesn't make sense. The only reason we buy luxury goods is because we like them. We like how it makes us feel. There is no logic. I know executives that walk into meetings where hundreds of millions of dollars of business takes place wearing a seiko quartz. A very successful attending I knew while I was training drove a Subaru impreza. The great thing about this hobby is that you can get the pleasure of the goods without the tie up of significant capital.

[robbnj]

Disclaimer: I don't make frankens, just wear very accurate reps.
The answer to your question is simple for me. I could buy a 5k gen every month and not notice. But, instead I could take a short position or buy into a security for the long run, or angel on a startup. If it tanks, i dont notice. If my return is exemplary then i do. There is absolutely no reason to spend money (which is the only way to really make money) on something that brings you temporary pleasure. The same applies to my automobile. Sure I could buy a brand new 997 or I could buy an 09 for a fraction of the price, freeing up capital to make more of itself.
If someone had decided to own 6 reps instead of 6 gens, 25k could have gone into high risk high reward dndn at 4 bucks and offloaded at 40 a couple months ago. That's 250k that will never go to a gen.

That's an odd read for sure.

You could spend 60K a year on watches and not NOTICE (which implies a good deal of disposable income), but wouldn't do it because you could make more money with the capital?

What's the point of making the money if you're not going to spend it and enjoy it (at least some of it)?
You might as well set up simulated trading accounts and make millions on paper, (or you could use your skills to help other people struggle a bit less).

As for temporary pleasure, it's ALL temporary.
The Brinks truck ain't gonna' follow your coffin to the cemtery...

[bobkat]

As for temporary pleasure, it's ALL temporary.
The Brinks truck ain't gonna' follow your coffin to the cemtery...

No but it will follow my children and their children's. Building wealth into families is what allows for innovation and success in our country. We backed a small startup that now does some very innovative things in their market. 60k when they were seeding is worth much more now and the capital was much better used than for 60k of gen watches or new car that have the smell. Obviously as I said once you reach a threshold of net worth the 60k becomes less of an issue and you wouldn't be looking at projects to tie capital in unless the play was Millions. Like most things, luxury goods scale.

[Posh]

:-D. Completely agree with this. Complete waste of capital. Until its a fraction of a percent of total net worth it doesn't make sense. The only reason we buy luxury goods is because we like them. We like how it makes us feel. There is no logic. I know executives that walk into meetings where hundreds of millions of dollars of business takes place wearing a seiko quartz. A very successful attending I knew while I was training drove a Subaru impreza. The great thing about this hobby is that you can get the pleasure of the goods without the tie up of significant capital.

And when I say fractional, I would posit no more than 10% (or a little less) of your income should go to these "toys." A friend of my fiance does some investing for a new member of the Ravens, I believe, and his contract is only worth about $1.5 million a year, if I recall correctly. He bought a little over $315,000 worth of jewelry. Now, I have no idea how his money is allocated or anything but that's already over 21% of his income in just baubles alone. He couldn't really talk the guy out of it either.

This hobby could really have saved him some money because replicas for many things are really that good. But he's REALLY wanting to keep up appearances.

That's an odd read for sure.

You could spend 60K a year on watches and not NOTICE (which implies a good deal of disposable income), but wouldn't do it because you could make more money with the capital?

What's the point of making the money if you're not going to spend it and enjoy it (at least some of it)?
You might as well set up simulated trading accounts and make millions on paper, (or you could use your skills to help other people struggle a bit less).

As for temporary pleasure, it's ALL temporary.
The Brinks truck ain't gonna' follow your coffin to the cemtery...

The acquisition of money in and of itself is an enjoyment for some, pleasurable even. And if you happen to like your children, it can allow them the luxury to do anything they choose. A watch, a dress, a bag or a car will not. I also agree with the teaching of others on how to build wealth. That's not a bad thing to do at all, especially to a spendthrift family member! LOL

But like Bob said, luxury will scale with increase of wealth and income. No one is saying live like an ascetic and be miserable. A little denial now can reap grand rewards in the future.

Compound interest is a helluva drug!

[Aradune]

And when I say fractional, I would posit no more than 10% (or a little less) of your income should go to these "toys." A friend of my fiance does some investing for a new member of the Ravens, I believe, and his contract is only worth about $1.5 million a year, if I recall correctly. He bought a little over $315,000 worth of jewelry. Now, I have no idea how his money is allocated or anything but that's already over 21% of his income in just baubles alone. He couldn't really talk the guy out of it either.

This hobby could really have saved him some money because replicas for many things are really that good. But he's REALLY wanting to keep up appearances.

I've been surprised how my interest in this hobby has evolved. I too work in the financial industry with UHNW clients which is further compounded by living in Miami. My first rep was a Franken V1 HBB which I used as an experiment to see what types of reactions I would get from clients. Surprisingly, the rep opened up new conversation topics that my gen Rolex never did.

I began experimenting with different brands, Panerai, AP, etc and it's amazing (at least in Miami) how much it resonated. I've now become a timepiece enthusiast slowly teaching myself how to work/repair/mod my collection.

And the best part of all, the money for the gens I could have purchased has now fully funded the college account for my little girl

Thank you RepGeek community!

[robbnj]

No but it will follow my children and their children's. Building wealth into families is what allows for innovation and success in our country. We backed a small startup that now does some very innovative things in their market. 60k when they were seeding is worth much more now and the capital was much better used than for 60k of gen watches or new car that have the smell. Obviously as I said once you reach a threshold of net worth the 60k becomes less of an issue and you wouldn't be looking at projects to tie capital in unless the play was Millions. Like most things, luxury goods scale.

Understood, but you stated that you could drop the 60K/year and never notice it.
This implies that the money isn't earmarked for family inheritance, specific needs (loan payments, education expenses), future investing, etc, but is "mad money" that you can spend as you wish.

If it's earmarked, then you can't really say that you can drop the money without noticing it (unless you were trying to "backdoor" the information that you make a lot more money than many people and have a lot to burn).

[bobkat]

If it's earmarked, then you can't really say that you can drop the money without noticing it (unless you were trying to "backdoor" the information that you make a lot more money than many people and have a lot to burn).

Differnent definitions of notice. The reality is all money made is earmarked. Just depends on the priorities. 60k to someone who makes 500k a year is not noticeable in the sense that it's not enough to affect day to day operations. 60k to someone who makes 120k a year effects the person at every level. Whether it be mortgage or loan payment or what have you. I understand your point, but in the end all capital is earmarked. There's no real "mad money". In my examples I'm talking about high risk high reward. So if I loose that 60k in the play, it doesn't effect day to day life. Most people have a diverse risk portfolio in that sense.