Thread by @ritholtz

"If you were prescient enough to buy a 1954 300SL new for $7k MSRP + locked it away, it would fetch ~$1.4 million today. Annualized return of 8% before inflation, storage + maintenance.

Most funds performed better + required zero oil filters."

bloomberg.com/news/articles/…

To say nothing of the inherent Survivorship Bias in looking at the cars that did appreciate: Selecting investments after the fact is easy; ask yourself this question: What car do you want to buy as an investment for the next 60 years to be sold in 2081?

ritholtz.com/2018/08/surviv…

This is why I have always been a big believer in buying what you like, and driving it (like you stole it).

ritholtz.com/2020/11/my-gar…

My "fantasy garage" includes some things that are pretty or useful or fast or some combination of that, but all would see some mileage every year.

ritholtz.com/2020/11/my-gar…

If you enjoy driving or cars or collecting things or racing or whatever, and you can afford it, by all means buy a fun toy. Even better if you pick it up after that a 50% depreciation from MSRP.

But please, don't rationalize it as an investment.

Its not.

OK, one last reveal:

Whenever I am tempted to add another pony to the stable, I buy a toy. And by that, I mean an actual toy. That usually sates any shopping lust, but if it doesn't, at least I know its for real. (and its an easter egg on BBRG TV appearances)

Now would probably be a terrible time to ask if anyone can recommend someone to do a pre-purchase inspection on a car in the Tampa Bay, FL area . . .