WoD – Art and Portfolio Theory

How much of your net worth would you feel comfortable spending on art?  What if you loved a piece, and knew it would hold its value?  Whether driven by emotion or cool calculus or portfolio theory, there is some percentage of your net worth you’d be willing or able to tie up in art.  And it goes to reason an even smaller % for just one piece of art, right?

Ok, so think of that percentage.  Since I don’t value art all that much myself, my % is very small, probably in the <1% range.  Many of you may well be similar.  And if I loved art, maybe I’d allow myself a couple of % to be invested in it.

Now read this about Steven Cohen:  “Steven A. Cohen, the founder of SAC Capital Advisors, is paying $155 million for Picasso’s “Le Rêve,” a report said.”

$155 million for one piece of art.  Now divide this figure by the % you have in your head.  Holy crap, right?!  I mean, sure, he is a hedge fund guy, I get it.  But he’s not Sam Walton or Carlos Slim – guys that actually MADE something.

Reminds me of the infamous words of Bud Fox in Wall Street, “how many yachts can you waterski behind?”


KALIKE (KUHlihkeh)

A cripple, a sickly person

I played a few sets of tennis this weekend, and I’ve been so sore that I felt like a kalike.


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