We Study Billionaires - The Investor’s Podcast Network TIP240: Investing in Fine Art Like a Stock w/ Scott Lynn (Business Podcast)
Apr 28, 2019
Scott Lynn, founder of Masterworks, shares his expertise on investing in fine art. He discusses how art can be a viable investment for everyone, not just the elite. Lynn explains the bull and bear thesis behind fine art investing and unveils critical metrics for valuing artworks. He warns about potential value traps in high-profile pieces and analyzes how ultra-rich investors influence the market. Listeners will gain insights on navigating the art market's complexities and making informed investment decisions.
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Art Market Outperformance and Uncorrelation
- Fine art has outperformed the S&P 500 by 180% over the past 20 years.
- It's considered an uncorrelated asset class, making it a potential portfolio diversifier.
Art and Wealth Correlation
- Art prices correlate with global ultra-wealth creation, not necessarily economic downturns.
- The art market is driven by a small group trading high-value paintings amongst themselves.
Blue-Chip Art
- "Blue-chip" art refers to the top 100 artists by sales volume, offering lower volatility.
- These artists' works offer steadier returns due to consistent demand and declining supply.