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Classic cars are top performers
Passion investments normally make up a small part of a wealthy person’s portfolio. The bulk goes into stocks, bonds and real estate, some into racier alternatives such as private equity but only the leftovers into collectibles for a bit of fun. Experts advise you to have a genuine interest, whether it’s in art, stamps, watches or even comic books and old toys, combining an investment with a hobby. So even if the value of your Penny Black fades or the stuffing falls out of your Edwardian teddy bear you still have the pleasure of ownership.
Yet, one collectible stands out for a stellar decade-long performance.
The Knight Frank Luxury Investment index (KFLII) shows that classic cars have beaten everything from art, watches, gold and coins over the past one, five, and 10 years. The group noted this week that the value of the Historic Automobile Group International index has risen by an astounding 487% over the past 10 years and grew by 16% in 2014.
Indeed passion investments as a whole have been a good bet.
The KFLII has risen in value by 10% over the 12 months to the end of September, outperforming both the FTSE 100 equities index and the top end of the London residential housing market over that time.
Photo: Spencer Wright