Stocks and Shares versus Classic Cars
Stocks and Shares versus Classic Cars
There was an article earlier this year that perfectly highlighted why people wiill pay over the odds for a great Classic Car with history and heritage, as well as pay over the odds for a great stock or share that is guaranteed to rise in value.
This article speaks of the sale of a Ferrari 330 GTS that was sold in the Barrett-Jackson Classic Car Auction in the Arizona desert, and describes the car as having a seized engine as well as rusty bodywork, mouldy interior and pitted chrome. This car went under the hammer and resulted in a sale for $2 Million, when recent valuations have seen this type of Classic Car only ever reach around $1 Million previously.
The reason is that this car is totally original in every way and has never been played with or restored. Whilst most restorations bring great value to a Classic Car, this particular make and model ( Ferrari 330 GTS ) is worth more when left untouched, due to it's rarity.
The same rules apply to stocks and shares, inasmuch as one has to pay more, or " over the odds " for a stock that is guaranteed to go North, or rise sharply after one has done the due dilligence.