#41-Pagani Bolts, Van Gogh, and Values
Searching for the World's Greatest Collectibles
My favorite quote of the week -
Three Thoughts -
#1 - Over $100,000, Just for the Bolts
Here's yet another reason why your next supercar should be a Pagani.
Not only is every single bolt in a Pagani made from grade 7 Titanium, but each one is engraved with a tiny Pagani logo.
Why does Pagani use grade 7 Titanium bolts? Super lightweight, high strength, and the added palladium is ultra corrosion resistant.
It takes 1,400 bolts to assemble a Pagani Huayra, and each bolt costs about $95.00.
That's $133,000, just for the bolts.
The engineering and math makes perfect sense, but what's the purpose of engraving every single bolt with the Pagani logo?
I haven't asked this question to the founder, Horacio, but I'm going to guess one of the reasons is printed directly on the Pagani website:
"Beauty in the details, beauty in the lines, in the beating heart of cars that are born as creations and not just as designs. Beauty where you cannot see it."
#2 - Van Gogh’s First (and only) Sale
He only sold one painting while he was alive.
And he later admitted feeling some guilt for charging full price, when the buyer was, in fact, his friend's sister.
Anna Boch purchased 'The Red Vineyards near Arles' from Vincent van Gogh for 400 francs at the Les XX Exhibition in 1890.
Sixteen years later, Anna sold the painting for 10,000 francs. Owned by a Russian businessman, then nationalized by the Bolsheviks. And in 1948 given to the Pushkin Museum in Moscow, where it remains today.
Van Gogh created over 2,000 paintings and sketches over just 10 years as an artist, most of those produced in the last 2 years of his life.
When he died at age 37, he was just beginning to receive recognition by a small group of artists.
If sold today, could you guess where the 'Red Vineyard' painting would rank among the most valuable Van Gough's of all-time?
$117 million - 'Orchard with Cypresses' sold in 2022
$72 million - 'Self-portrait Without a Beard' sold in 1998
$66 million - 'The Avenue of Les Alyscamps' sold in 2015
$50 million - 'Starry Night' sold in 1990
$40 million - 'Sunflowers' sold in 1987
For example, some current valuation estimates for 'Starry Night' are over $250 million if sold today. Would the 'Red Vineyard' top that?
#3 - Manheim Used Car Index Sliding
The Manheim Used-Vehicle Value Index continued it’s slide in May.
The price index dropped 12.1% over the past year.
As you can see from the chart below, values have been down for almost 2 years, but still way above the levels of early 2020.
If prices are going back to 2019 levels, there’s still a long way to go!
I like to keep an eye on the Manheim Index because it’s such a broad gauge, tracking a huge amount of transactions.
If you’re a car collector, it never hurts to watch the overall used car market.
Any predictions on where we are headed?
BONUS - What Everybody Wants
What does everybody want?
Everybody wants value. Everyone wants to be appreciated.
VALUE and
APPRECIATION.
Understanding these two concepts will get you a long way in this world.
Are you trying to connect with someone, but not making any progress?
Learn the skills of a great collector. The great collectors are constantly studying value and appreciation.
Value
But what is value? You hear the word constantly, all day long.
Create value. Produce value. Value proposition. Value meal…
Warren Buffett has a famous quote that summarizes what value means to him.
Appreciation
Have you ever heard someone say, “I’m tired of being appreciated too much?”
It’s never happened. Nobody has ever said those words before.
Do you want to get on someone’s good-side in less than 30 seconds?
Make them feel appreciated.
It’s the quickest and easiest way make someone’s day.
It’s the simplest way to build a relationship.
The greatest collectors have a special gift for valuing, appreciating, sharing, and brightening someone’s day.
My ask of you – Share this with someone who might be struggling to connect with others. Maybe a trip to a local musuem will ignite a curiosity for the concepts of value and appreciation.
READ MORE - I explored the topic of value and appreciation further if you’d like to continue reading…
Reach out - I’d love to hear what you’re collecting next!
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Thanks for reading, and have a great week!
TJ@atticcapital.com