Health of Asset Class - Over/Under 1955 Topps Koufax PSA 9

[Touch'EmAll]

Yes, very true what you say about the way of the older Buffet/Munger. But the article is about the younger generation of investors.

[raulus]

Originally Posted by Touch'EmAll

Yes, very true what you say about the way of the older Buffet/Munger. But the article is about the younger generation of investors.

These alternative investment structures for illiquid assets like this have been around for a few years now.

In concept it’s certainly intriguing.

I think my biggest concerns are:

1) I don’t actually own all of the thing, but instead I just own some small fraction of it. I’d rather own all of something to enjoy it personally, rather than own 0.001% of something that I will never actually see.

2) Admin costs for these investments tend to be high, which eats into your returns pretty dramatically.

3) I’m worried about shady characters and fraud. Do I really own part of a Van Gogh? Or did I just get part of a fake? Did they only sell 10 million shares, or did they sell 500 million shares, and I own a lot less than I thought? What happens if the people running the show take the asset and flee to Brazil? I know that there’s supposed to be safeguards for a lot of this stuff, but I’m not ready to really trust it just yet. Hopefully the crypto goons have taught us to be wary about other goons pitching alternative investments.

4) While it’s supposed to be liquid, I suspect that in times of economic stress, you might struggle to find buyers, or have to sell at fire sale prices to cash out your investment.