Clever Investments: The Balanced Portfolio

Money Managers often talk about Balanced Portfolios. Some high risk assets mixed in with a little yield. I collect watches with a similar logic, once aesthetics and the romance is put to one side, the money has to work and with Hedge Funds taking a closer eye on physical assets and continued record breaking prices for vintage watches now is a smart time to turn that hobby into a pension.

Patek Philippe 5970
Patek Philippe 5970

Patek Philippe is blue chip, it’s an inflation hedge and if you invest in the classics (by which I mean the Philippe Stern watches) its steady yield. Watches such as the 5970, 5070 and 5004 I suspect will continue to deliver that 4-5 per cent a year return when purchased with original box , certificate and in good condition.

Patek Philippe 5070
Patek Philippe 5070

Supply of such pieces is already tight and if you fancy yourself as the next George Soros with Paul Tudor Jones pockets then pieces such as the 5004a ( Stainless steel ) or 5074 are an exciting long term acquisition . For those adrenalin junkies who gorge themselves on risk and sleepless nights Paul Newman Daytona is perhaps the ultimate investment. The hardest watch to appraise with numerous theories on dials and references here lies I believe the biggest growth market in watches especially in the rare yellow Gold. You find Paul Newman’s and you find vintage Rolex, both are unique asset classes in their own right. So where is the middle ground, the watch equivalent of a stock with decent dividend and long term growth?

Rolex Daytona 6263
Rolex Daytona 6263

The Rolex Daytona 6263/6265 could be just the answer. In a similar vein is the Patek Philippe 5070. Both watches exist in a price point that is within the relative realms of affordability, they are discontinued and they are recognized as some of the most desirable watches from perhaps the two most desirable brands.

Patek Philippe 5070
Patek Philippe 5070

With the 5070 we find Patek’s largest case to date (42 mm) in all metals and inspired by the incredibly rare ref 2512 aviator’s split second chronograph of the 1950s.With its manual wind lemania based 27-70 movement it’s recognised globally as the iconic modern Patek Chronograph. Quite simply the purity of its design has not been bettered. The presence of the Patek archive also adds the reassurance that the watch you are buying has not been plagiarised with dial changes that afflicts many vintage Rolex.

Rolex Daytona 6263
Rolex Daytona 6263

Ref 6263/6265 have recently benefited from a number of important factors. The hugely successful Lesson One sale has defined the Daytona as THE vintage Rolex for investment and the kudos of many high profile owners from the world of fashion and screen has added to their desirability and global appeal. Here is a watch that is a brand within a brand, characterised by a beautiful dial within a rugged and useable case. Finding good watches is however becoming increasingly difficult (especially for the ref 6263) and prices for such pieces is gravitating higher as supply from traditional markets such as Italy diminishes. As the price of Paul Newman’s continues to rise ever closer to $150,000 the regular or non “exotic “dial 6263/6265 at $60,000 looks real value. Consider that one Paul Newman ref 6263/6239 RCO famously fetched a magic $1 million and that value looks even more appealing. Here is a great watch that defines what the Daytona stands for, fitted with a superb Valjoux calibre and the ability to provide good growth on your investments.

Rolex Daytona 6265
Rolex Daytona 6265

A portfolio needs a balance, betting consistently on the underdog is a challenging ride. These two timepieces from two great manufacturers provide the ideal balance between risk and reward.

Photo Credit: Haute Time. For more information, please visit @jimmycosmo’s official Instagram page. 

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