Luxury watches:Supply chain disruption, inflation &tourism?

Was having a conversation with my friend who was asking me, should he invest in luxurywatches now?

He was very troubled as he felt that he wantto do more investment when he is younger but he highlighted that the high end watches prices are increasing so fast.

As I am not a fan of luxury watches, I was Quite out of touch on the latest prices, as I diverted all my funds to investments.

Boy, was I mind blown. [OMG] [OMG] [OMG]

The prices for Rolex, omega and other luxury watches increased significantly.

I recalled the same thing happened to branded bags, whereby nowadays we can see a lot more LVs, Hermes and Channel being paraded around.

The "supply chain" disruptions gave reason for the luxury watches and bags to increase their prices.

People who were stuck at homes with sparebudgets as they couldn't travel, could afford to splurge their "annual travel budget" On branded bags and watches.

Higher Inflation will only serve to boost the prices of luxury watches and bags as they aredeemed to be able to hold and increase in value.

[Thinking] [Thinking] [Thinking]

Considering the above, what should we be doing? Invest in luxury watches and bags?

I went to do some research and my mind is blown.

$CORTINA HOLDINGS LIMITED(C41.SI)$

$THE HOUR GLASS LIMITED(AGS.SI)$

Do check the above out. I was honestly shocked by the price movement.

I was thinking that without the tourism boostdue to lockdowns, they won't be doing as well in terms of valuation.

Man, was I wrong. Now that the borders are opening up, and Tourists will be able to startshopping and just in time for Great Singapore Sale, I wonder what will happen to the prices. [Gosh]

Since tiger mention to check ROIC, let's take a look

Both has ROC>10%.

Not high, but not too Low also.

[Thinking] perharps it makes more sense to buy either $CORTINA HOLDINGS LIMITED(C41.SI)$or $THE HOUR GLASS LIMITED(AGS.SI)$over buying the branded watch instead.

[Thinking] [Thinking] [Thinking]

What do u think? Will buying the watch be better or buying the watch seller will be better?

[Cool] [Cool] [Cool]

@TigerStars

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Supertooth
2022-04-21
Supertooth
Yes u r right but whats roic or roc? More than 10 percent is good? Both must buy long term.Best is that they privatise. If you check back theres conisistent share buyback which is a good sign! Ps like
- Bonta:
  Roc means return of capital. Roic means return of invested capital. To me its the same. Its the higher the better, as it signals that the coy is making money. Yup, buybacks are always good. [Strong]
th0mastan
2022-04-18
th0mastan
Have been accumulatinn $THE HOUR GLASS LIMITED(AGS.SI)$ at below $2 due to its aggressive shares buyback. The strong demand for luxury watches would likely to continue, branding is key
SipHong
2022-04-19
SipHong
Thanks for sharing
Yuno
2022-04-18
Yuno
i think if u use the same amount to buy a watch to buy the stocks instead u might profit more in shorter timeframe looking at pandemic low price level
Maky
2022-04-18
Maky
An investment guru once asked: if there is war and you need to escape, will a syndicate take a gold bar or rolex watch of same value to help you? His answer was rolex. Food for thought
Riker
2022-04-18
Riker
seller will certainly be better, he has the cash. but then I don't see luxury items as investments....