[00:02] 650% in the past decade, appreciating at a rate of 14% per year since 1980, which stock market. But, are they actually good investments? The answer is, well, fact appreciate. The secret, according
[00:17] to this article, is, quote, "controlled distribution and exclusivity." Hermès intentionally limits access to Birkins, so that means the demand is always going to outweigh the supply in this case. Birkins are going to consistently resell
[00:29] above retail, with some rare models doubling in value in just 5 years, and a record Birkin sold for over $10 million at auction. But, there are a few things no one talks about that are worth mentioning before you invest. So, first
[00:41] is that not all SKUs appreciate at the same rate. Some are going to be lower than the aforementioned number, and some are going to be higher, especially the exotic skins like ostrich or crocodile. Second, you can't just walk into an
[00:53] Hermès store and buy one. Most people have to spend two to three to four times the bag's price on other products before being even offered to buy one. So, the 12K bag might cost you $40,000 in actual spent. Third, if you really want it to
[01:06] appreciate in value, it needs to sit in its box with tags in place and not be used. So, everyday wear and tear can cause some depreciation, or perhaps just jeopardize the investment value. And lastly, they are a liquid, so if you
[01:18] want to sell it for cash today, it's going to be hard to find a buyer that can give you that value immediately. These bags, just like classic cars, wine, art, or even Pokémon cards, these can all be investments, but at the end
[01:30] willing to pay for it and how fast you can get access to that money. If you're would keep it at 5% or less of your entire portfolio, and just understand that these luxury goods are just that. Luxury goods could retain its value or
[01:44] something that you should put your entire net worth into.