You can now buy shares of rare Hermès bags

[ladybug333]

Thought this article was interesting: https://www.businessinsider.com/rally-prive-porter-to-sell-stock-in-hermes-birkin-bags-2020-2?amp

Prive Porter is allowing investors to buy shares of rare handbags. The first is a $50k Birkin bag with 2000 shares available. Interesting concept.

What do you think?

I’m very intrigued by the fact that investing in more than just stocks and real estate is an option. However, I’m curious what the returns on a bag investment would even be, and I wonder if this is a marketing campaign (to show that rare, expensive Birkins are a good investment) more than a serious investment tactic.

(Note: I’m starting this thread to create a discussion out of curiosity, not because I’m looking to invest in this and need advice).

 

[momoc]

I...guess...it is interesting alright. My immediate question though is how does your share get valued when you want to sell it? Who determines the market price...? I assume one may want the ability to sell their share without requiring the bag to actually be sold, which probably needs the other 1999 shareholders to agree...?

Kinda funny this happens a couple days after we got that thread asking about investing with Birkins!

 

[papertiger]

Agreeing when and what to do in the future will be interesting among 2000 bag sharers

 

[showgratitude]

Interesting concept, but realistically speaking---how can you really share one bag amongst 2,000 people? Should you mail it to the next person on the list? How long will it be in the mail especially if the address is overseas? What if customs holds it for a long time? Who also pays the taxes and fees? Those are just some of my questions. More importantly though, if one will share it with 2,000 people, how "hygienic" will it be? With a new virus in Asia possibly becoming a pandemic, I don't really want to share a bag with 2,000 people---or even just a dozen. Just my thoughts.

 

[ladybug333]

Interesting concept, but realistically speaking---how can you really share one bag amongst 2,000 people? Should you mail it to the next person on the list? How long will it be in the mail especially if the address is overseas? What if customs holds it for a long time? Who also pays the taxes and fees? Those are just some of my questions. More importantly though, if one will share it with 2,000 people, how "hygienic" will it be? With a new virus in Asia possibly becoming a pandemic, I don't really want to share a bag with 2,000 people. Just my thoughts.

Agreeing when and what to do in the future will be interesting among 2000 bag sharers

I think there may be some confusion. You're not buying shares of the bag in order to use it. You're purchasing shares in the hopes that the unused bag will increase in value. This same practice exists for things like real estate investing, where you can invest into a fund with other investors and the managing company will invest in real estate for you, which you would own a percentage of. So, as it grows in value, your shares would grow in value depending on how much of it you own.

The article talks about an investment strategy, similar to investing in the stock market or real estate.

 

[ladybug333]

I...guess...it is interesting alright. My immediate question though is how does your share get valued when you want to sell it? Who determines the market price...? I assume one may want the ability to sell their share without requiring the bag to actually be sold, which probably needs the other 1999 shareholders to agree...?

Kinda funny this happens a couple days after we got that thread asking about investing with Birkins!

Yeah that's a great question. I assume Prive Porter and the company they're working with would determine market price? My assumption is that you could sell your shares back to Prive Porter later on without needing the other shareholders to agree (similar to when you sell a stock), but not sure how that would work.

I'm also curious -- how is the bag being kept? I imagine that if someone is investing in a bag, it would make sense to hold your investment for years (decades?) so the bag would need to be kept in a temperature controlled room and stored in a way where it wouldn't damage the bag over time.

Personally, I think this also could be a clever marketing strategy to encourage people to see their expensive handbags as investments (so that they'd be more willing to spend $50k on a bag for themselves instead of thinking it's a "waste" to spend that on a purse).

 

[papertiger]

I think there may be some confusion. You're not buying shares of the bag in order to use it. You're purchasing shares in the hopes that the unused bag will increase in value. This same practice exists for things like real estate investing, where you can invest into a fund with other investors and the managing company will invest in real estate for you, which you would own a percentage of. So, as it grows in value, your shares would grow in value depending on how much of it you own.

The article talks about an investment strategy, similar to investing in the stock market or real estate.

I get it. I should have added a

 

[showgratitude]

I think there may be some confusion. You're not buying shares of the bag in order to use it. You're purchasing shares in the hopes that the unused bag will increase in value. This same practice exists for things like real estate investing, where you can invest into a fund with other investors and the managing company will invest in real estate for you, which you would own a percentage of. So, as it grows in value, your shares would grow in value depending on how much of it you own.

The article talks about an investment strategy, similar to investing in the stock market or real estate.

Thanks for clarifying. I only read the last comment. If you want stocks/shares of stocks, I am sure you know that they can be very volatile. But, if you think it is a good investment and you have the money to burn, why not? Good luck.

 

[dharma]

I stopped in their pop up in Manhattan several months ago because they had a gorgeous vintage car in their space. Several “valuable” items were displayed, including a 25 lizard Birkin valued ridiculously and laughably high. The concept is that you purchase shares but the item is held by Rally until they find an outlet to sell the item. The “profits”, or more likely loses, are shared by the share holders.

 

[ladybug333]

Thanks for clarifying. I only read the last comment. If you want stocks/shares of stocks, I am sure you know that they can be very volatile. But, if you think it is a good investment and you have the money to burn, why not? Good luck.

Thank you. As mentioned, I am not looking to invest in this. Just creating a discussion to hear people's thoughts. However, I do disagree that investing in stocks is very volatile -- over time it is a solid investment strategy.

 

[ladybug333]

I stopped in their pop up in Manhattan several months ago because they had a gorgeous vintage car in their space. Several “valuable” items were displayed, including a 25 lizard Birkin valued ridiculously and laughably high. The concept is that you purchase shares but the item is held by Rally until they find an outlet to sell the item. The “profits”, or more likely loses, are shared by the share holders.

Ah, interesting. So are they trying to sell the item ASAP or are they letting it increase in value over the years and selling it in the future?

 

[acrowcounted]

I’m sure it’s all marketing if only to introduce those two company names to people who have never heard of them before via free media attention.

I’m sure the shares will be like any other shares of investment; all you need is someone who thinks the shares are worth more than you paid, whether that opinion is fact or not, and the investor will make money by selling their own shares to this other person. (ie if I have one Amazon stock that I bought for $100 and want to sell it, and I find someone who wants to buy it and thinks it’s worth $120, then I profit regardless of anything to do with Amazon itself). So, if these companies can convince people that Birkins will significantly appreciate in value somehow (????) then they will make money by selling the stocks to whoever they can convince of this and then they really don’t care what happens to the value of the bags because they’ve already cashed out. Seems very predatory in this realm, imo.

 

[golconda]

This is almost funny.

 

[Love Of My Life]

It's a clever marketing strategy . Time will tell
I'll be happier in the long run keeping my portfolio without adding shares in a Birkin..

 

[dharma]

The salesman was “vague”. And knew nothing about Birkins.
Other items included a contract signed by Mohammad Ali and a vintage Rolex. Felt like a scam.