Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/20245/5 It’s true we don’t observe an `objective’ value of art. But again, the comparison to public equity is the issue. Many old paintings are priced based on comparative analysis, as is common practice for VC, M&A, PE, etc. The National Gallery insurance valuations in my research are like that. 000
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/20244/5 I agree that the stock market is often a poor point of comparison. Art is less regulated, less liquid, and less transparent. But that doesn’t equate to art not being an investment. Similar issues exist for VC, PE, and Real Estate. 100
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/20243/5 It’s true not many artworks manage to be sold over long periods. Collecting contemporary artists is like investing in start-ups: the minority make it but those that do, have a great rate of return. See Chambers, Dimson, and Spaenjer’s (2020) work on Keynes’ art collection 100
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/20242/5 The article outlines how Jonathan Guthrie sold one artwork with largely no profit. Buying one artwork is like buying one stock. Just because S&P 500 is going up, doesn’t mean the value of all the equities in the market is going up. Same with art. 100
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/20241/5 Jonathan Guthrie claims in his @ft article that “It’s bananas to regard art as an investment”. A few thoughts from someone researching art as an investment - a thread🧵 www.ft.com/content/daf9...ft.comIt’s bananas to regard art as an investmentEnjoy your paintings and sculptures. Just don’t expect a return on what you paid for them 132
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 27/11/2024I am excited to present my paper on Value Investing in the Art Market at the inaugural workshop of the LSE Financial History Group this Friday. So much great research is being done across different departments! See the full line-up here: www.lse.ac.uk/Economic-His...lse.ac.ukFinancial History Group Workshop 2024Financial History Group Workshop 2024 010
Reposted by Luisa Bicalho RitzkatNick Fitzhenry @nickfitzhenry.bsky.social · 26/11/2024I created a starter pack of LSE Economic History people on Bluesky. Let me know if I have missed you! go.bsky.app/BJSugbh 0119
Luisa Bicalho Ritzkat @lbritzkat.bsky.social · 23/11/2024Looks amazing, Nick! The icons fit perfectly. I also like that you linked all the extra work you did outside your research too. You curated some amazing resources for teaching economic history 020