Does it seem foolish?

[ravenhome777]

Does it seem foolish to spend 15k on a watch?

[JRDiAndrea]

Yes.

[BigBlue1]

Depends on your situation.

[Tools]

Foolish is perspective.

If you wonder where next months rent is coming from, then, yes, spending 15k on almost anything is foolish.

For some, it's just another purchase; new rims and tires on the Benz, or a watch first..

[Andad]

Originally Posted by Tools

Foolish is perspective.

If you wonder where next months rent is coming from, then, yes, spending 15k on almost anything is foolish.

For some, it's just another purchase; new rims and tires on the Benz, or a watch first..

Hmmmmm?

New rims on the Benz?

That’s a thought, thanks Larry

[Patton250]

Originally Posted by cascavel

Yes, absolutely. There's no way you can get a good watch for $15K. You have to spend at least $40K to get a really good watch. Anything less is a waste of money.

Lol. You just made things 10 times more complicated.

Originally Posted by directioneng

Hmmmmm?

New rims on the Benz?

That’s a thought, thanks Larry

I just spent $8000 on new rims and tires for my Benz. Lol

[Nickn]

It’s not actually spent
If you don’t buy from a jeweller and pay full retail you can always get your money back
Bought a 2002 112838 day-date full set for £10,000 yesterday from a collector if I decide to sell I am sure there’s a small profit so I didn’t actually spend anything
At least that’s what I told my wife

[Tom1675]

Negative. Are you really asking this crew? Anything with a matte dial in good/original condition will run you $15k these days...

It does seem crazy but we've got the bug.

As for "foolish." Are you asking if we are in a bubble? People have been saying that for years about this hobby, housing, C2 Corvettes, stock market...

[locutus49]

If your family is financially okay, then it is not foolish, it is smart. Why smart you ask? Because it is an investment. Yes an investment. An investment in human happiness.

[ghcpa9]

Originally Posted by locutus49

Because it is an investment. Yes an investment. An investment in human happiness.

I would like to inform you that I am stealing this line for use with my wife regarding my recent Rolex purchase. Thank you.

[ravenhome777]

It is just interesting to me, that's all. We are spending truckloads of money for a watch. At the end of the day, it's just a watch. We know that watch didn't cost nearly 15k to produce. It probably costs 100 dollars in materials. The intellectual property might cost 500 when spanned across production numbers. We need to factor in employee pay, and the facility, so maybe 1k? Why are we paying 14k extra?

Really, it's almost like you're purchasing art. You could say the same thing for a painting. Is a van gough really worth 50 million? It's a canvas and oil paint. The materials cost no more than 5 dollars, but some people are willing to spend 50 million for it. Where is the value? What are you getting in return for your wealth? The thought behind it, I suppose.

[Claven2]

Originally Posted by ravenhome777

It probably costs 100 dollars in materials. The intellectual property might cost 500 when spanned across production numbers. We need to factor in employee pay, and the facility, so maybe 1k? Why are we paying 14k extra?

In terms of raw materials cost, that varies GREATLY by model. Perhaps there is $100 or so in a sports watch, but far more in anything with PM content. There is over $100 in gold in a typical DJ fluted bezel, for example.

The IP to develop new types of ceramics or new movements (see the 3200 series) is likely higher than you estimate. Now factor in how many large and modern european facilities Rolex has currently. At least 4 large plants that I know of. Then then there are all the boutiques they own, employees, advertising and distribution costs. Much more than $1K per watch, I'll wager.

The profit margin is high, but it's not 1500% like you claim. Probably more like 100-200% per watch.

Now ask what they do with the money. Rolex is NOT a publicly traded company. The Wilsdorf foundation uses all the money for investment in the brand (i.e. improving vertical integration, like when they bought beyeler), R&D, etc. and their charitable works - which aren't publicized, but according to several sources, a large portion goes to a scholarship endowment for training watchmakers to keep the watchmaking industry viable.

Bob's Watches did a reasonably good job explaining it all here:

https://www.bobswatches.com/rolex-bl...on-profit.html

[Dr.Smellody]

It is all relative!

[brandrea]

All depends how you prioritize.

[zengineer]

Originally Posted by ravenhome777

Does it seem foolish to spend 15k on a watch?

Not if it's one worth 20k

Sent from my Motorola Bag Phone

[1665fan]

Originally Posted by zengineer

Not if it's one worth 20k

Sent from my Motorola Bag Phone

Booya

[Paulie 50]

Originally Posted by zengineer

Not if it's one worth 20k

Sent from my Motorola Bag Phone

Buying watches like any other hobby is very subjective, if you can appreciate the beauty of the watch and the workmanship that has gone into producing it then yes, there is also the added value that if you buy with your head as well as your heart; there is more than a good chance that you will get more than your initial outlay if you decide to part with it further on up the road.

[zapokee]

Not foolish if you have the resources and you know you can sell the watch all day to break even or make a profit.

As per the previous posts, you're not spending - you're just putting your funds into a different (and more enjoyable) vehicle. You'd almost be foolish not to, if you know what you're doing.

[ravenhome777]

I asked the question because I was curious to hear everyone's thoughts on the matter. It's almost philosophical in some way.

My favorite response so far was JRDiAndrea. I was laughing my a** off. LOL!

Brutal honesty. We all know it is foolish on some level. How do we justify the foolishness to ourselves. Do we hide it? Do we embrace it? Are we scared of it? That's what makes it interesting.

Hey! No judgement here. I'm drinking the kool-aid too. It tastes delicious! :-P

[springer]

Originally Posted by ravenhome777

Does it seem foolish to spend 15k on a watch?

It very well might be - depends on your individual situation and ego. Most people that don't don't have that type of disposable income aren't going to be buying $15,000 watches. We only pay outlandish prices for anything when our personal wealth or income allows us to do so. Why spend $70,000 for a car when one for $25,000 will do the same thing?

[jon54]

Once you have the money and you are comfortable buying it then is not foolish.

[77T]

I’ve spent much more for 2 seconds a lap.

Listen, before you over analyze your navel lint in an effort to divine the meaning of life...just remember time is money.


Sent from my iPhone using Tapatalk Pro

[ravenhome777]

On some level, I think we're pretty ballzy to spend 15k on a watch. I mean, it's not something that most people would do. It's kind of like going parachuting on some level, no?

Sorry, I've been getting kind of philosophical about the whole thing today. I also noticed that I often associate Hans Wilsdorf with Walt Disney. I think it's their imagination and their ability to create something that they imagined in the physical space. People imagine stuff and create things in reality all the time, I suppose. But perhaps it's the grand scale that they did it on. And they both kind of created "worlds" or reality/fantasies that you can live in and partake in. People are living in their fantasy worlds long after they've left. Maybe that's the association I'm making. Not sure.

Also, I have been thinking about Rolex as a company. It's private. It has no stock for anyone to purchase. Is Rolex stock, its watches? Are you buying a piece of the company when you buy a Rolex? Kind of. The reason I feel this way is because I asked the question, would a vintage Rolex watch be worth as much if Rolex was no longer in business... If it wasn't a living company. I don't think so. The fact that Rolex maintains its presence in the minds and hearts of the world adds value to their "stock". The fact that they buy ads for the Oscars adds value to their watches and gives back to their "shareholders" because it keeps the name "Rolex" in circulation. The next generation will be aware of the name Rolex. It maintains the brand as a household name and keeps our watches valuable. If they went out of business, which they probably never will, then the price of watches would plummet because they wouldn't be relevant anymore. Anyway, that's what I was thinking about today when I should have been working.

[Tools]

I don't have an issue with spending 15k for a watch, I'm wearing one right now.

What I can't see is spending almost 4 million bucks on a green Mustang that was used for an hour in a movie decades ago.

[exador]

Originally Posted by Tools

What I can't see is spending almost 4 million bucks on a green Mustang that was used for an hour in a movie decades ago.

Beats spending 18 million on an ugly watch that the salad dressing guy once wore

[EEpro]

Originally Posted by exador

Beats spending 18 million on an ugly watch that the salad dressing guy once wore

That's a tax avoidance buy and makes a ton of sense as the buyer will pocket 30+% by keeping it from the IRS.

[ravenhome777]

I guess it is relative. You're right. I'm certainly not rich so 15k gives me pause. But if you're a millionaire, maybe 100k gives you pause. Whatever number makes your stomach turn a little bit. Then you can ask yourself the question. There's a certain number that everyone has, given their financial situation, that might make them ask that question to themselves. Is $__ amount really worth a watch?

The only reason I'm thinking about that is because it gets into an area where you're challenging yourself a little bit. It makes things interesting and kind of tests your metal, so to speak.

[Dan S]

Only if it has a pan-pie dial.

[BigBlue1]

How much is too much to spend on a watch? How about even contemplating the thought of buying a watch is a foolish thought. There are so many avenues you could go it’s endless, but please no pan-pie.

[cascavel]

Yes, absolutely. There's no way you can get a good watch for $15K. You have to spend at least $40K to get a really good watch. Anything less is a waste of money.