Are luxury watches a ‘good investment' or ‘stupid flex'? Kevin O'Leary sets the record straight on their worth

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'Shark Tank' star Kevin O'Leary is known for his unfiltered takes on money and investing. And when it comes to a certain tangible asset — one he literally wears every day — he doesn't hold back.
'Is investing in a luxury watch a good investment, or a stupid flex?' he asked in a recent YouTube video, flashing two high-end timepieces — one on each wrist.
While watches keep time, O'Leary explained, they also mark time — especially when purchased to commemorate life's milestones. 'Maybe you had a great deal, maybe you had a child, or you went to college, you graduated, whatever it is, you're always going to remember that event from your watch,' he said.
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Indeed, many people buy luxury watches to celebrate personal achievements — and O'Leary's done that himself, many times. But he says there's one golden rule to follow:
'The real rule is — never borrow money to buy a watch, ever. Just buy a watch you can afford.'
He even offered starter recommendations: 'Start with entry level products, great products like Grand Seiko or Tudor and then when something good happens, go nuts.'
To drive the 'go nuts' point home, he brought both wrists closer to the camera. On one: a Rolex 'Rainbow' Daytona, which can fetch more than $400,000 on the secondary market. On the other: a Patek Philippe Aquanaut Luce 'Rainbow' — even more rare and even more expensive.
To be sure, while some watches have appreciated in value over the years, that's far from guaranteed. Not every model or brand sees gains — and even those that do rarely go up in a straight line.
According to the ChronoPulse Watch Index — a global price indicator for the secondary watch market from luxury marketplace Chrono24 — luxury watch prices surged in 2020 and 2021, but began falling after peaking in March 2022.
For example, ChronoPulse's Rolex Index has dropped 19% from its March 2022 peak. The Patek Philippe Index — which saw an even more dramatic surge in early 2022 — is now down more than 40% since its peak.
The good news? Watches aren't the only alternative assets investors can explore. If you're interested in tangible investments, here are three coveted assets favored by the ultra-wealthy.
Gold
When it comes to preserving wealth, few assets have a track record as long and storied as gold. For centuries, the yellow metal has served as a safe haven during times of economic uncertainty, market volatility and inflation.
Unlike watches, gold doesn't depend on fashion trends or collector demand to retain value. It's globally recognized, highly liquid and — unlike paper currency — can't be printed at will by central banks.
In fact, central banks around the world have been stockpiling gold. Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, recently highlighted gold's importance in a resilient portfolio.
'People don't have, typically, an adequate amount of gold in their portfolio,' he told CNBC earlier this year. 'When bad times come, gold is a very effective diversifier.'
Over the past 12 months, gold prices have climbed by more than 35%.
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Thor Metals.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.
To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals on qualifying purchases.
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Real estate
Few tangible assets work harder for investors than real estate — especially when it comes to generating passive income. While property values can fluctuate — just like stocks — real estate doesn't rely on a booming market to generate returns.
Even in an economic downturn, high quality, essential properties keep generating passive income through rent. In other words, you don't have to wait for prices to rise to see a payoff — the asset itself can work for you.
Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset.
In 2022, Buffett stated that if you offered him '1% of all the apartment houses in the country' for $25 billion, he would 'write you a check.'
Of course, you don't need billions — or even to buy an entire property — to benefit from real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Fine art
It's easy to see why great works of art tend to appreciate over time. Supply is limited and many famous pieces have already been snatched up by museums and collectors. Art also has a low correlation with stocks and bonds, which helps with diversification.
In 2022, a collection of art owned by the late Microsoft co-founder Paul Allen sold for $1.5 billion at Christie's New York, making it the most valuable collection in auction history.
Investing in art was traditionally a privilege reserved for the ultra-wealthy.
Now, that's changed with Masterworks — a platform for investing in shares of blue-chip artwork by renowned artists, including Pablo Picasso, Jean-Michel Basquiat and Banksy. It's easy to use and with 23 successful exits to date, every one of them has been profitable thus far.
Simply browse their impressive portfolio of paintings and choose how many shares you'd like to buy. Masterworks will handle all the details, making high-end art investments both accessible and effortless.
Masterworks has distributed roughly $61 million back to investors and new offerings have sold out in minutes, but you can skip their waitlist here.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.