The Intellectual Investor – Value Investing by Vitaliy Katsenelson The Art of Rational Irrationality – Part 1 – Ep 267
Oct 30, 2025
Get ready for an intriguing exploration of rational irrationality, starting with luxury goods like mechanical watches that defy digital trends. Discover why Rolex maintains high demand through scarcity and storytelling. Vitaliy digs into buyer motivations and how retail environments, like a Gucci in Macy's versus Rolex on Bond Street, shape perceptions of value. Plus, learn about Fevertree's journey in creating a premium mixer category, emphasizing quality over profit. Each topic reveals the intricate dance between luxury branding and consumer psychology.
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Research Road Trip With Jonah
- Vitaliy traveled to London and Scotland with his son Jonah and visited WOSG stores and shipyards.
- The trip became a field research tour that informed his investing view on luxury and Babcock.
Watches As Jewelry And Storytelling
- Mechanical watches survive because they serve as men's jewelry and nostalgia, not timekeeping.
- Luxury watch buyers pay for craftsmanship, storytelling, and status, not accuracy.
Scarcity Plus Story Creates Value
- Rolex pairs scarcity with storytelling to create outsized margins and demand.
- The brand crafts psychology and aspiration that lets it sell watches far above manufacturing cost.
