We own three cars. Combined, they have about 260,000 miles on them, meaning they have lots of life left. If we sold all three today, we’d have somewhere around $35k to invest in alternative transpo like this. Tempting at times.
Most mornings I skim the Bogleheads forum, an excellent online community of mostly Vanguard-based investors. Today, I came across a post titled “Novice question” by “Oldman”. Here are his opening sentences:
“I am an 82 year old, fairly healthy, happily married, with one son (gainfully employed) and two grandsons in high school. I have no experience in this investing game. My home is mortgage free, we have lived within our means on my pension and social security income of about $108,000 annually. My life insurance policy is worth $72,000. A very recent car sale has put almost $3 million in my bank account after the tax hits.”
Unsurprisingly, the last sentence left many readers perplexed. One joked that it must have been a Ferrari. He was right. Sale price, somewhere between $5.5 and $7m.
It’s a very cool story that began with a large and questionable financial risk. It’s also about teaching one’s self auto mechanics and passion for auto history and aesthetics.
In the video, the Admiral explains he didn’t buy it as an investment and never really thought of it as one until more recently. Still though, what a lesson in buying and holding. And for taking care of your stuff. I like everything about the story.
Wonder what our 2006 Honda Civic hybrid will fetch in 46 years?
Postscript: If a twenty-something were to invest in a consumer product for 58 years, in the hope of making more money than they would investing in the S&P 500, what would be some options? An AppleWatch Series 4? A Tesla? A Boosted electric skateboard?