192: Buy Shares of High End Art with Masterworks CEO Scott Lynn

Masterworks CEO Scott Lynn returns to Invest Like a Boss after appearing on the show for Episode 146 in June 2020. A lot has changed since then and Masterworks has grown tremendously. Scott talks with Derek to give an overview of the market and how the platform has performed since. Then Sam joins in with Derek to discuss investing in art and possible disruptions (Digital art, NFTs, etc) coming to the market. Scott Lynn is the Founder and CEO of Masterworks.io. He Founded Masterworks in 2017 after realizing that art had better risk-adjusted returns than other asset classes, but the only way to invest is if someone has millions of dollars to buy a painting, or tens of millions of dollars to build a portfolio. Scott has been an active collector of contemporary art for more than fifteen years and has built an internationally-recognized collection of Abstract Expressionism that has included works by Clyfford Still, Barnett Newman, Mark Rothko, Willem de Kooning, and more. In addition to Masterworks, Mr. Lynn serves on the board of v2 ventures (Adparlor, Giant Media, Reachmobi, Amply, and Sellozo), Payability, and the Brooklyn Rail (a non-profit publication in the art industry). Listen to ILAB 192 on iTunes here or subscribe on your favorite podcast app. Where we are: Johnny FD – Ukraine / IG @johnnyfdj Sam Marks – Andora/ IG @imsammarks Derek Spartz - Venice Beach / IG @DerekRadio Support Invest Like a Boss: Join our Patreon Discussed: Masterworks Episode 146 Like these investments? Try them with these special ILAB links: ArtofFX – Start with just a $10,000 account (reduced from $25,000) Fundrise – Start with only $1,000 into their REIT funds (non-accredited investors OK) Betterment – Get up to 1 year managed free Wealthfront – Get your first $15,000 managed free PeerStreet – Get a 1% yield bump on your first loan *Johnny and Sam use all of the above services personally. Time Stamps: 06:16 – How has the art market been affected by covid? 08:15 – How much Assets does Masterworks hold, and how many investors? 09:15 – What’s the average amount that investors invest in? 10:01 – How many paintings does an investor hold? 10:56 – How has the market changed for you now you have become the biggest buyer in the world? 12:28 – Are there any living artists that are increasing in value that your research team believe may outperform the deceased artists? 16:51 – Have artists been affected by “Cancel Culture”? 19:09 – Where are the art pieces stored? 20:05 – What type of insurance do you hold on these paintings? 20:46 – What is blue chip art? 21:19 – Has there been talk of investing in blue-chip art as something similar to an index fund? 22:30 – Are they certain artists you can highly expect to consistently rise in value? 25:27 – How has art been a better performing asset than the S&P 500? 30:13 – How does the secondary market work? 31:28 – Do you see any day traders getting involved trying to get into the market? 32:27 – What type of fees does Masterworks take on each piece of art? 32:51 – How does the NFT’s compare to the physical art market?  35:13 – Can you explain how copyrights work as it relates to the physical painting and the digital copies? 38:37 – Patreon Question: How many pieces of art have Masterworks purchased and what have been the returns to date? 40:00 – Patreon Question: What’s the minimum amount to invest in Masterworks? 42:17 – Patreon Question: Do you have to be an accredited investor? 43:07 – Patreon Question: Do you have to be a US citizen to invest? 44:22 – What would you invest in personally and why? 46:44 – Sam and Derek review    If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!  Copyright 2021. All rights reserved. Read our disclaimer here.