We Study Billionaires - The Investor’s Podcast Network

TIP349: Why You Should Be Investing In Art Shares w/ Scott Lynn

May 16, 2021
Guest
Scott Lynn
In this discussion, Scott Lynn, an internet entrepreneur and founder of Masterworks, reveals how investors can access high-value art pieces by purchasing shares. He explores art as a unique investment opportunity, emphasizing its potential for portfolio diversification. The conversation also highlights market trends, the effects of events on art prices, and the complexities of valuing art. Additionally, Scott touches on the NFT movement, addressing misconceptions and its impact on both digital and traditional art sectors.
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INSIGHT

Art Market Size and Securitization

  • Art is a $1.7 trillion asset class, roughly half the size of venture and private equity.
  • Despite its size, it's been largely unsecuritized until recently.
INSIGHT

Art Appreciation Drivers

  • Art prices are driven by the top 1%'s demand, similar to a call option on the ultra-wealthy.
  • Art's scarcity increases over time as pieces enter museums, unlike real estate or gold.
ADVICE

Art Portfolio Allocation

  • Consider art as 1.8% to 8% of your portfolio, according to a Citi study.
  • Art’s returns decrease as it ages, with post-WWII art currently the most investable segment.
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