Mark "Mayor Farese has over 3,000 sneakers with an estimated value of $750,000.
Wow...well, I applaud his effort but hmm is it really worth it?
In terms of investment, I can't do a return calculation but assuming that sneakers behave like collectibles and art, then we would expect an annual return of 6%, a return below the market return about 8-10%. We also have to factor in the cost of storage, so returns are not fantastic. Also, if he is smart, he should have some insurance for the shoes so that would further lower the returns as well. So in terms of investment, sneakers do not seem to be a good investment.
But given that he made a career out of collecting sneakers, I guess the returns may actually be higher (we don't know his endorsement deals).
So the lesson here? If you want to collect something then go all in but remember it is a risky move financially but if you derive immense utility from that activity,your call.
Snapshot Serengeti
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