The Reason I Had to Buy a Luxury Watch

Investment or an expensive hobby?

I still remember the day I bought my first luxury watch. It was such an amazing experience. The visit to the store, trying the watch I had in mind on for the last time before it finally became mine.

In this story, I’ll write about the reasons I had to buy a luxury watch and why I believe it is a good idea to invest in one. I don’t usually use watches as an investment, but I would not say it is not one.

When I first started working I did not use to wear wristwatches. I had a desk job and my computer had a clock on its corner all the time. When I attended meetings I would constantly look at my phone to check the time, which came off as impolite and rude to the others in the meeting. They were talking to me and my eyes were fixated on my phone.

I started wearing a wristwatch shortly after. It grew on me and I felt naked if I forgot to put it on one day. This ‘accessory’ became part of my three slap technique. The three slap technique is the method I use to make sure, I have everything I need on me before I leave the house:

• slap on the left trouser pocket to check the phone,
• slap on the right trouser pocket to check the keys,
• slap on the left back pocket to check the wallet.

Now a fast check on my left wrist was part of this daily routine.

My time with Apple Watch

When the Apple Watch was launched, I immediately knew this accessory was made for me. I’m a technology freak, I use an iPhone, and having it on my wrist meant I can get all my notifications, emails, messages, and other cool stuff. In the first months, I was happy with the Apple Watch. I became more active and was keen on closing the activity circles. I loved the subtle vibration it made to signalize a notification, reminder, or an email. It was just perfect. After a year of using the Apple Watch religiously, the Apple Watch Series II was launched, and then it hit me. My previous normal watch did not have an expiration date, this one does. After a couple of generations, it would not be supported by Apple anymore, and new functions and apps would not be available on it. I bought an expensive watch that was doomed in 2–3 years.

My math infested mind started calculating: $400 for 3 years meant that this watch was depreciating with an average of $12 per month. It might not sound bad especially when you compare this to depreciation values for phones. However, this was not a phone, this was a watch, it was an accessory.

That was my first problem with the Apple Watch. The second problem was honestly my mistake. I never put the watch on “do not disturb”. So in my meetings, every time the watch vibrated I looked at it. This gave a lot of my clients the feeling that I was busy and as if I had no time for them, or as if I had something better to do. I kept my Apple Watch on, but I was losing interest very fast. I was even window shopping for a normal wristwatch.

Buying my first luxury watch

While I was looking for a new watch to buy, My colleague told me to get a luxury watch and we went together to a jeweler. The thought of paying 4000+ dollars for a watch never crossed my mind. But after trying on some watches and falling in love with them, I did the research. I did not want to have a wristwatch that depreciates fast in value. I found out that:

• Luxury watches depreciate slightly. However, since the brands increase their prices every couple of years, the watch would gain value over time instead of losing value.
• Luxury watches are timeless. The market of vintage watches’ has been skyrocketing even during the pandemic. A Rolex Paul Newman (1968) was sold at $306,378 in late March 2020.
• Buying a luxury watch is like buying gold jewelry. It’s basically savings that you can wear, use, and enjoy. When the money is short and you need some extra cash, you can easily sell at any jeweler or use it as a collateral to obtain a short-term loan from a pawn shop.

I had decided to buy one. I had a promotion coming soon at work. So, I decided to buy the watch on my promotion, so the watch will always be a reminder of this huge step in my career. A month later I bought my first luxury watch, a Breitling Superocean Heritage. It was navy blue, my favorite color.

The experience of buying your first luxury watch adds to the value of it. I bought mine on a certain date (promotion), I remember the weather on that day, I remember which store I bought the timepiece from. Every time I go back to that store, they take my watch, make sure it is fine and give it back to me. The service just adds to the value of buying the watch. I even got two different straps, the store changes the strap for me every time I want, no questions asked.

After the watch

Not everybody on the streets would recognize the watch. Only other luxury watch enthusiasts would recognize it and talk to you about it. After I bought my Breitling, I went to a couple of meetings with the timepiece on my wrist. People, who already owned one, immediately recognized it and we had smalltalk about it. It felt like I was now in a club, the club of timepiece enthusiasts.

I started following the industry, watching Youtube videos, reading magazines, subscribing to newsletters, and searching online for second hand used watches as well. Looking at luxury watches started to become a hobby. I wanted to know their price tags, their specifications, and what made them special. Each brand was unique, each brand had a story behind it. Everything was special.

One year later I bought my second watch, It was a limited edition Montblanc chronograph watch, with golden watch hands and a black leather strap. This watch was more of a dress-up watch, while the Breitling has the sport watch vibes, it was my everyday go-to watch.

Now, it is almost impossible to get certain models of certain watches. So, I’ve decided to buy watches now only on certain dates or events in my life. This emotional connection adds to the watch’s value. My current plan is to buy a new watch on every 5-year birthday (35, 40, 45, etc) and maybe on my next promotion.

Currently, my watch portfolio value increased slightly. As an investment, this means that instead of losing 12 dollars every month, I made money from the watches I have in my current collection. This is why it is significant. I have the watch on my wrist every day, on the beach, at work, at the gym, under the shower, when I sleep. It keeps ticking and never needs charging. It is waterproof and on top of all of that, it gained value instead of losing value.

As investors, we are programmed to always look at the value of things. There is always a gap between I need it, and is it worth it for me. We always look at the return of investment. With a luxury watch, you have the emotional experience and bond with the watch, which is priceless. You also have the value of the watch itself. As I previously mentioned, even though the watch will depreciate with time, the brands increase their prices now and then, which leads to the watch gaining value over time instead of losing value. This is the best news an investor wants to hear, but this investor has an awesome timepiece on his wrist.

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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.