146: Does Art Out-Perform the S&P500? MasterWorks’ Scott Lynn

Scott Lynn is the Founder and CEO of Masterworks, the first company to allow investors to buy shares representing ownership of great masterpieces by artists like Warhol, Monet, and Banksy. 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, Scott 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). In this episode, Scott is discussing art as an investment class and compares it to other regular investments and how the regular person can get involved. After listening, you will better understand Art as an asset class and information on the company Masterworks! Where we are: Johnny FD – Sri Lanka / IG @johnnyfdk Sam Marks – North Carolina / IG @imsammarks Sponsor: Support Invest Like a Boss: Join our Patreon Discussed: Masterworks 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: 08:24 – Are you passionate about art as a collector or have you primarily looked at it as an investor? 10:59 – Do you see a flood of money going into art presently? 13:07 – “last year approximate 6.8 Billion in art sold” - Scott Lynn 15:10 – When you buy a “Blue Chip” piece, where are they held or displayed? 16:04 – What makes a piece of art “Blue Chip”? 17:13 – “You do see a correlation between an artist passing away and prices going up, but it's not because the artist passes away, its because the artist is no longer producing work” - Scott Lynn 20:10 – How does the whole buying and procurement process happen? 24:18 – What’s the average price of a piece on Masterworks? 26:53 – What’s the typical length of time that your money is invested in these paintings? 28:56 – Q&A from ILAB community 35:07 - Derek’s Recap 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 2020. All rights reserved. Read our disclaimer here.