Investing in Art

[The White Coat Investor]

I get lots of interesting stuff by email. Here's one that came today:

 

Dear White coat investor team,

My name is Nicoletta and I work at Feral Horses. We are a young startup about to launch in Spring 2017. What we do is simple: we are creating an online trading platform to acquire and sell shares of artworks for investment purposes. We aim at providing a very comprehensive service that brings both liquidity and transparency and facilitates access to the benefits of art in a responsible and sustainable way.

The reason I’m reaching out to you is that Feral Horses’ story could be an interesting addition to your editorial strategy. In fact, our service is disruptive in the sense that it will allow investors to build diversified contemporary art portfolio while we manage the physical artworks (selection, transportation, insurance, storage, etc). What makes us really special, is the fact that we also look after securing rental agreements with businesses in London. Therefore, the artworks that are rented generate dividends for the owners.

I understand that you are selective about doing promotions but you must admit that Feral Horses is a strong candidate. I am bringing this service to your notice only because I feel that our startup offers a multitude of angles for you and your readers would truly appreciate it.

Please note that I have also attached our Presskit to this email for your convenience.

If you are interested in this proposal, please let me know and we can schedule a call to discuss the details and provide you with more information,

Kind Regards,

Nicoletta Cecchinelli

Feral Horses

PS: Still not convinced? Have a look at our landing page: https://www.feralhorses.co.uk/

I'm all for alternative investments, but this one is probably a little too alternative for me.

[Zaphod]

Craziness.

[retinadoc]

Too exotic for me, but that is a clever idea for a business.

[VagabondMD]

Agree. It might be interesting to be able to have fractional ownership of established masters (Picasso, Renoir, Van Gogh, Warhol, etc.) to buy, sell, and lease.

https://www.wsj.com/articles/what-sort-of-return-are-you-getting-above-your-fireplace-1387056633

Contemporary art seems more like a lottery ticket than an investment. I am sure that "Feral Horses" (WTH kind of name is that, anyway?) will be happy to take your money. That said, perhaps as a representative of many wealthy U.S. physicians (with more cash than brains), they would be willing to fly you and your faithful sidekick (that's me) for a tour of their operations and meetings to better understand the business model.

[PhysicianOnFIRE]

Vagabond MD wrote:

I am sure that “Feral Horses” (WTH kind of name is that, anyway?)

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Feral Horses... couldn't drag me awaaaaayyyy.

At least it's not Fecal Horses.

I actually checked out the site. Under Costs, it lists storage and insurance, but does not say what those costs will be. I can see a service like this being pitched on Shark Tank and actually garnering some interest.

[Complete_newbie]

This is actually a good idea.

Risky (hey, startup). But it can probably get some funding with Angels.

Sure can dominate their niche market if executed.

[The White Coat Investor]

Vagabond MD wrote:

Agree. It might be interesting to be able to have fractional ownership of established masters (Picasso, Renoir, Van Gogh, Warhol, etc.) to buy, sell, and lease.

https://www.wsj.com/articles/what-sort-of-return-are-you-getting-above-your-fireplace-1387056633

Contemporary art seems more like a lottery ticket than an investment. I am sure that “Feral Horses” (WTH kind of name is that, anyway?) will be happy to take your money. That said, perhaps as a representative of many wealthy U.S. physicians (with more cash than brains), they would be willing to fly you and your faithful sidekick (that’s me) for a tour of their operations and meetings to better understand the business model.

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I haven't replied yet. Do you really want to go? I can give it a try. It wouldn't be the first time someone offered to fly me out for something like this.

[jz]

Good luck on 'em.

They lost me at "sustainable". Every sales pitch on the planet uses  "sustainable", which is hackneyed,  anachronistic, yesterday's story.

[CM]

You cannot be serious. https://www.youtube.com/watch?v=ekQ_Ja02gTY

[VagabondMD]

The White Coat Investor wrote:

Vagabond MD wrote:

Agree. It might be interesting to be able to have fractional ownership of established masters (Picasso, Renoir, Van Gogh, Warhol, etc.) to buy, sell, and lease.

https://www.wsj.com/articles/what-sort-of-return-are-you-getting-above-your-fireplace-1387056633

Contemporary art seems more like a lottery ticket than an investment. I am sure that “Feral Horses” (WTH kind of name is that, anyway?) will be happy to take your money. That said, perhaps as a representative of many wealthy U.S. physicians (with more cash than brains), they would be willing to fly you and your faithful sidekick (that’s me) for a tour of their operations and meetings to better understand the business model.

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I haven’t replied yet. Do you really want to go? I can give it a try. It wouldn’t be the first time someone offered to fly me out for something like this.

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You bet!

[RocDoc]

Vagabond MD, I would find it awesome and hilarious if you and WCI can negotiate yourselves a free trip to the UK to "evaluate the business venture" and look at artwork. It would be great to see the docs prospering at the expense of some feral business people! Go get 'em boys!

[ENT Doc]

You two should totally get them to fly you out there.  That would be hilarious.  See if they'll cover the opportunity costs of your missed work too.  In all seriousness though, ideas like this belong on some futures indicator of a market correction, like number of IPO offerings and such.  Paying unknown costs (as PoF pointed out) for a product that it's highly dependent on the market doing well for sustained periods where few have expertise to know what you're paying for (most importantly you) just seems like speculative behavior at best.  Crazy ideas, lots of capital running around chasing them...sound familiar anyone?  I see the next edition of A Random Walk including this business enterprise in his retrospective look at market bubbles of the 2000's.

[Hatton]

A free trip to London would be nice.  Vagabond as you downsize your house there will no room for the fractional ownership of the Picassos.

[The White Coat Investor]

Okay, let's try it. What's your availability these next 3 months? And do you already have a passport? What city would you be flying out of? Email me if you want.

Oh, and you have to write the post about it!

[PhysicianOnFIRE]

Complete_newbie wrote:

This is actually a good idea.

Risky (hey, startup). But it can probably get some funding with Angels.

Sure can dominate their niche market if executed.

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A good idea for the entrepreneur who owns this? Or for the investor? There is a huge difference of course.

My guess is with some slick marketing, it could end up being very good for the owner, but I have my doubts about how it will work out for the investors.