AP, Rolex and Patek each have a very specific reason for existing

And it’s not to what you think

One of the things most don’t understand is watches are an alternative asset class

You mange them in a portfolio just like any other asset class

And like stocks, real estate, art, etc, it’s about positioning and understanding where your money is safest and where it’s going to grow the fastest. 

For example

If you want it to grow, you take one big income bet with AP. I look at the brand for the intent of upside. What model is going to give one big shot up $60k when timed correctly? 

If you want it to be liquid and still provide some passive income you go with Rolex. Trading Rolex as a form of debt repayment is extremely common. It presents the opportunity to constantly move money. 

If you want to keep it long-term, preserve it and not worry about constantly trading in and out, you go Patek. 

Patek is the best of all three worlds. It has liquidity, great margin and the creep up effect. 

Over time, it’s one of the safest places to park money that offers liquidity if you have to get out. 

When there’s market uncertainty, go heavier in Patek. When you need liquidity, go heavier in Rolex. When you need higher upside because you need income, go into AP.

Jewelers are nothing more than international money managers. They use this strategy every day to create income, asset safety and tax efficiency. 

Like I always say, have you ever met a poor Jeweler? 

Nope, it’s because they’re masters at playing this game.