Longhood Market Declining? Just wondering....

[Jim Breazeale]

I paid "all the money" for my lowly Sepia Brown 71 911T in 1973. It's probably worth 15 times what I paid for it, maybe more. What's the fu*#ing problem?

[bob joyce]

i think it is the typical guy that buys "used' hood badges and then wants to sell them for $400

[Unobtanium-inc]

Big Baller Shot Caller is what they call me on the West but I'm thinking I might need to come East and hang in the Limo!

I usually take the kids to school in it, it's an old movie car, Rolls clip on a Chrysler 300. Cheap fun.

---Adam

[sithot]

I paid "all the money" for my lowly Sepia Brown 71 911T in 1973. It's probably worth 15 times what I paid for it, maybe more. What's the fu*#ing problem?

I paid what a nice 1967 911 was selling for in 2004. It wasn't a lot of money by today's standards BUT it was market price. So was the 73RS I didn't buy for $72,000. I still chuckle about that faux pas. None of us had control over the fact that Porsches would eventually be chased like the rabbit at a dog track.

If you want to play a game where you may become disenchanted with your choices of spending money on cars or investing use an investment calculator and be honest about upkeep/insurance etc. for your inputs.
Jim has the longest hold of anyone here I think so let's assume he stole the '71-T for $5,000. If he made 10% which is fair and then added $50/month for upkeep (ridiculously low considering insurance and Porsche parts which have never been cheap). That adds up, according to the calculator using 10% to about $1,500,000.

Here's the fun "What if"

What if Jim had forgone the 911-T and instead handed a stock broker $5,000 in 1983 and bought 5 shares of Berkshire Hathaway? BRK-A

Double the above figure. Theoretically, all he had to do is sit back and watch. Berkshire pays no dividends so no tax ramifications.

https://finance.yahoo.com/quote/BRK-A?.tsrc=fin-srch

Of course I'm pretty sure that non of this fiction ever crossed Jim's mind. I gather he's no less happy having owned the SAME car for 51 years.

Good on him!!!

Tom

PS: A screen shot from 1983!

[Unobtanium-inc]

I paid what a nice 1967 911 was selling for in 2004. It wasn't a lot of money by today's standards BUT it was market price. So was the 73RS I didn't buy for $72,000. I still chuckle about that faux pas. None of us had control over the fact that Porsches would eventually be chased like the rabbit at a dog track.

If you want to play a game where you may become disenchanted with your choices of spending money on cars or investing use an investment calculator and be honest about upkeep/insurance etc. for your inputs.
Jim has the longest hold of anyone here I think so let's assume he stole the '71-T for $5,000. If he made 10% which is fair and then added $50/month for upkeep (ridiculously low considering insurance and Porsche parts which have never been cheap). That adds up, according to the calculator using 10% to about $1,500,000.

Here's the fun "What if"

What if Jim had forgone the 911-T and instead handed a stock broker $5,000 in 1983 and bought 5 shares of Berkshire Hathaway? BRK-A

Double the above figure. Theoretically, all he had to do is sit back and watch. Berkshire pays no dividends so no tax ramifications.

https://finance.yahoo.com/quote/BRK-A?.tsrc=fin-srch

Of course I'm pretty sure that non of this fiction ever crossed Jim's mind. I gather he's no less happy having owned the SAME car for 51 years.

Good on him!!!

Tom

PS: A screen shot from 1983!

Cars, in general, are bad investments, compared to actual investments. The difference is they are a whole lot more fun than a portfolio. The difference between a Porsche and other cars to own is that the Porsche tends to grow in value over time, meaning you can absorb the costs associated in owning it. As opposed to having a vintage SAAB or MG. But it still costs money to maintain, insure, pay tax, and store cars for long periods of time.
What bothers me are the guys who have crept into the Porsche world in the last decade or so, they call me looking for a car, usually a Speedster, but it must be "investment grade", whatever that actually means. I always ask them if I look like I'm investing?

---Adam

[cbpiii]

Investments have to have 3 attributes 1) grow over time 2) generate cash 3) are liquid. If they only give you number 1, then you better be compensated by a higher risk adjusted return.


Cars for the vast majority of folks are simply consumption, so enjoy them!

[sithot]

What he said. ^^^

[pgxif]

“a whole lot more fun than a portfolio.” And
“ … you can absorb the costs associated in owning it. “

Agree
These 2 points particularly resonate with me …

[frederik]

Correct, you get to enjoy one of the best sports cars ever made and as a bonus, it doesn't lose its value. An investment it is not. I see that more as a "manthink" way to justify a purchase to your wife.

The only outlier is the crazy rise in prices during roughly the 2005-2015 period, but most likely that won't repeat itself.

[LongRanger]

. . . If you want to play a game where you may become disenchanted with your choices of spending money on cars or investing use an investment calculator and be honest about upkeep/insurance etc. for your inputs . . .

. . . Here's the fun "What if"

What if Jim had forgone the 911-T and instead handed a stock broker $5,000 in 1983 and bought 5 shares of Berkshire Hathaway? BRK-A

Double the above figure. Theoretically, all he had to do is sit back and watch. Berkshire pays no dividends so no tax ramifications . . .

Oh --- I got that beat

If I'd bought $58.5k-worth of Amazon in '09 @$3.24/share --- instead of my car? . . . =~18k shares


Today? --- @~$180/share? . . .



. . . that's $3,250,000


Good thing I don't eat much


Point is --- unless you're a dealer turning over cars very quickly . . . cars are a cosmically bad place to put money




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