How much can one simple word be worth?
In the case of a 356 Porsche Speedster from 1956 it is $1million. Yes one little word, added to the Speedster. A word that begins with C. The C in this case stands for ‘Carrera’. Let us explain.
The car above looks like normal 356 Porsche Speedster.
In fact you cannot tell from the outside that this car is slightly different. Except for the small sign below the ‘Speedster’ sign on the side of the car. The sign below reads Carrera.
While most Porsche’s today carry the Carrera badge, back then Carrera (Carrera comes from the famous Mexican endurance race Carrera Panamerica where Porsche won important victories) stood for something very rare. Exclusive. Special. The car above is not a normal 356 Speedster. It is a ‘Carrera’ Speedster.
What is the difference? Try $1 million. Yes we will write it again.
Today Carrera Speedsters are worth $1m more than a normal speedster. So what are the differences beside price? Firstly rarity. Only 75 Carrera speedsters were made whereas thousands of T1 and T2 speedsters were produced.
Secondly, as is often the case, the main differences lies in the engine. Whereas a normal 356 speedster would offer the driver 60hp or 75hp, the Carrera version was capable of 110hp and was powered by the legendary air cooled -4 cam, 4 cylinder engine with two dual throat carburettors developed by Fuhrman.
The Carrera engine was essentially a race inspired engine. It was very powerful, very reliable and robust. As a result the Carrera engine (type 547) developed by Fuhrman became the benchmark version to have for collectors. In two weeks RM Auctions will be auctioning a very rare Porsche 356 Carrera Speedster from 1956 (main picture above). Estimated at €780′ooo – €9oo’ooo, this Carrera Speedster carries its original Fuhrman type 547 engine matching the chassis Nr. The car additionally carries a number of special features such as original Rudge wheels and the speedometer which correctly has a RPM level of 8′ooo.
What will this car sell for?
Well the last time a Carrera Speedster got sold, it fetched $1.48m at Pebble Beach with Gooding in 2013 (see here). For more on the car above please click here.
(Main picture credit – Sports Car Digest. For readers interesting in learning more about the Porsche 356 series we highly recommend the book by Dirk Michael Conradt ‘Porsche 356: Driving in its purest Form’)
In the vintage watch world there are two important yearly auctions in Geneva: November & May.
For lovers of vintage Rolex watches the upcoming May watch auction is nothing short of spectacular. There is simply every kind of Rolex available that a collector could want.
From tropical dials, to underline dials, to double swiss signed Daytona’s. There is even a submariner double swiss dial (which we until now did not even know existed).
Christies alone is offering over 174 Rolex’s in their sale. We went through all the catalogues and have read ALL the condition reports and spoken to the top watch experts at both Sothebys and Christies. While there are probably around 30 watches that are interesting, in excellent condition and rare – we have narrowed the watches down to our top 5 favorites.
Please be advised that I have not yet seen the watches so we are relying on the photographs and information (by way of condition reports and telephone conversation) received from the auction houses.
Lot 420 Christies: Our first choice is a Rolex 5512 Submariner from 1962.
The reason we have chosen this watch is based on two main arguments. Firstly everyone is complaining that vintage Rolex has become unaffordable and overhyped. While this is true for the most part, collectors if they do their homework can still find relative bargains.
This watch below is still a bargain for what you get. Secondly this watch is highly interesting because you get the essence of what Rolex collecting is about in one package with this watch. Chapter ring dial, gloss dial, gilt dial, pointed crown guards and underline dial- could a Rolex collector ever ask for more? To top it all off you also get a 4Line dial with the CSCO (chronometre rating). Aside from square crown guards and explorer dials, this 5512 is one of the most seldom vintage Rolex watches that has come to the market.
Lot 90 Christies: A big crown Rolex 6538 Submariner from 1958.
There are perhaps 10 Rolex watches that are considered the holy grail for collectors. A must have for any serious Rolex collection. A big crown Submariner is certainly one of them. While there are several big crown references like the 6200, 5510, the 6538 stands out because it is the watch most closely associated with the James Bond Franchise (even though no-one can prove that Sean Connery was indeed wearing the ref 6538 instead of the 5510).
This example at Christies stands out for the way the dial has aged and turned into a light tobacco brown. This is what collectors refer to as ‘tropical’. The lettering below submariner as well as depth rating remains very well intact. The dial aside from some ‘brushing’ remains very well intact. Brushing occurs when the hands of the watch rub slightly against the dial cause ‘little scratch marks’. This is quite common among early submariner models.
Lot 168 Christies: Another watch that belongs in any serious Rolex collection is the 6542, a first generation GMT Master. While all references of the 6542 are considered collectible, it is the early references, those with bakelite bezels that are the most appealing. Yes they are delicate (which is also why Rolex decided to replace them later) but they are simply beautiful too. Especially when they are faded like the example below. Combine that with a beautifully aged Tropical dial and you have a very nice 6542.
Lot 164 Christies: In the world of Daytona, most consider the Paul Newman version to be the most collectible.
But not all Paul Newman Daytona’s are created equal.
While the many collectors are attracted to the Oyster cases like the Panda Dial which is ref 6263, the most rare Paul Newman Daytona is a ‘non-oyster case’. There are two very rare Paul Newman Daytona. Ref 6262 which comes with a steel bezel and ref 6264 which comes with the later black plastic bezel. The more attractive is clearly the ref 6264 which is also the watch pictured below. The 6264 benefits from its condition which is almost new even after 50 years of age.
Lot 341 Sotheby’s: One of the star lots is also the Rolex being offered at the May auctions by Sotheby’s this year.
While there are rarer Paul Newman Daytona watches than the ‘Panda Dial’ version being offered by Sotheby’s- few come in better condition and as complete as the one Sothebys is offering. The watch comes from the original owners family and is complete with guarantee (stamped by Bucherer Lausanne in 1974), outer box, box and Rolex papers. Although this watch was made in 1972 it took two years before it was sold in 1974 (not usual as Newman Daytona’s when introduced were not popular at all). However it is the condition of the case and dial that really makes this Panda Dial, the king of all Panda’s.
According to the expert at Sotheby’s, there has not been a better Daytona Panda that has passed through his hands within the last 20 years.
This was our third year at Techno Classica in Essen.
For those not aware the Techno Classica is, besides Retromobile the biggest Oldtimer fair in Europe.
While the cars being offered for sale left something to be desired for (for example there was not one single very important Ferrari for sale), Techno Classica made up for it in other ways. Mercedes Benz staged one of the grandest exhibition of their racing cars ever (you almost felt that they brought half of the museum with them from Stuttgart). This will the focus on our first part of Techno Classica.
Next for lovers of Italian style, there was a superb exhibition of Zagato and his work. Zagato, was, next to Pininfarina (in our opninon) the greatest Italian coach builder during the 1950s and 1960s. Our second part, of a three part series, will focus on the Zagato collection.
Lastly there was one exceptional car which we will profile in detail in our third and final part of the Techno Classica.
We start off with perhaps the absolute highlight of Techno Classica- Mercedes Benz and their exceptional racing history.
From far away they looked like toy models put on a shelf. Until you realize that these were really cars. It was one of the best display stands that we have ever seen (see main picture). Mercedes road cars were never our taste, except for the 300SL Gullwing, but like it or not, there are very few car brands that have such a rich racing history. The best drivers in the world drove for Mercedes. Fangio who five world championship titles, and Stirling Moss (who won in 1955 the Mille Miglia). Unfortunately in 1955 the Mercedes racing team suffered a disastrous crash at Le Mans, which killed 80 people, and forced Mercedes to retire from racing. However we can think of no other manufacturer other than Ferrari, who can compete in terms of racing history with Mercedes.
Some of the racing cars of Mercedes Benz brought along from their museum look like sculptures.
The car below, if were are not mistaken, is the sister car to the W 196, the single seater race car that Fangio drove, which achieved a world record for a car at public auction, selling for $29m or £19m last year. For full details please click here.
Well what is hiding there in the background (car Nr 658)? Can you guess? You are looking at the most valuable car in the world should it ever come to auction.
Lets have a closer look. It certainly looks beautiful and powerful.
It is indeed the 300SLR Uhlenhaut. Only two were made, both reside at the Mercedes Benz Museum in Stuttgart. This is indeed the car that Fangio drove in the Mille Miglia in 1955. Stirling Moss won the Mille Miglia in 1955 also with a 300SLR and Mercedes Benz secured the world championship the same year. Powered by a 8 cylinder 3L engine, the car was had over 300hp and could go over 300km/h. The engine was made of aluminum and was extremely light. The 300SLR was in a class of its own and left its competitors behind. Alone in 1955 the 300SLR won the Big prize of Sweden, The Eiffel trophy, the Mille Miglia and the Targa Florio. Sadly the 300SLR was also the reason why Mercedes withdrew from racing after the tragic accident in Le Mans where over 80 people died when a 300SLR flew into a crowd (the driver was Pierre Levegh).
Notice the Argentinian Flag- Juan Manuel Fangio was from Argentina. The Nr 658 denotes the starting time Fangio had at the Mille Miglia (6:58 in the morning)!
The car looks stunning from all angles. Without a doubt one of the most desirable and rare cars on this planet. We wonder wether $100m would be enough to secure this car were it ever offered for sale.
Next up is another very rare car. The 300SL Mercedes lightweight- made for one of the toughest endurance races ever: The Carrera Panamericana. Notice the nice details such as the leather strap to secure the bonnet.
Notice the plaid covers which were original from the time. In the background Mercedes proudly stating that Fangio won the world title 5 times. He is without a doubt the greatest race driver that ever lived.
The back of the car finally denotes that this car is indeed a 300SL (but without the bumpers- to save weight).
Lastly because it is so cool: A mercedes transporter probably from the 1950s – to transport the racing cars safely. Notice the sign: Max speed 105 mph (which is not that slow).
For Part II please see our post here
There is an old saying. Nothing goes upwards forever. Eventually everything comes back down to earth.
Except it seems, prices of vintage Rolex.
What happened wednesday night at Antiquorum in New York is simply exceptional. Normally we report on prices of watches. But today we are reporting on a part of watch. Not a movement. Not even a dial which would be important. But on a part that is usually plastic and sits on top of Rolex sports watches. Today we are reporting on a bezel.
On wednesday, someone paid $32’500 for essentially a piece of plastic. Yes we have the number right. Not $320. Not even $3’200, which also would be a nice sum. But $32’500! Why would a collector do that?
Surely they overpaid? Maybe. But perhaps not. Let us explain. The bezel part you see above belongs to one of the most famous and sought after Rolex references in the world, the GMT Master. First introduced in the 1950s, the GMT was a revolutionary toolwatch designed to help Pilots in multiple time zones. The first GMT master is reference 6542 and was made only for a short period of time. The first watches carried a ‘Bakelite’ bezel – much like the one above. But they would crack under heat and so Rolex later replaced the bezels for ‘normal’ plastic ones. As a result original Bakelite bezels in good condition are very rare.
While many ‘Bakelite’ bezels exist, most are cracked and damaged slightly. The bezel above while not NOS (new old stock as stated in the catalogue), was slightly used but still in very very good condition. So what is a 6542 Rolex GMT master worth today? Well the record price paid for a reference Rolex GMT Master 6542 was CHF 255′ooo (see result here). So on a relative basis, the $32’500 does not look that expensive. Until you realize that $32’500 buys you a very nice second generation GMT Master reference 1675 with a gilt dial, chapter ring and pointed crown guards.
For our in-depth review of the Rolex 6542 GMT Master please see our report here
It seem everybody really does love Pandas.
No – we are not talking about the cute animals in the Zoo. Rather a Daytona model from Rolex which collectors have nicknamed ‘Panda’.
Judging from the Antiquorum auction that just finished a few hours ago, Rolex Daytona, especially the rare examples with exotic dials (also know as Paul Newman versions) remain more in demand than ever. Lot 289 – a Rolex 6263 ‘Paul Newman’ Daytona ‘Panda’from 1970 (the watch above), sold for $228′ooo including fees (for all the details of the watch click here). What is so special about the watch above? Well many things. For one, it is one of the last Paul Newman Daytona’s made with screw down pushers (allowing for water resistance). Oyster cases are always more sought after than normal or ‘pump’ pushers. Secondly this dial variation is called the ‘Panda’ dial. Panda due to the black and white dial that resembles-well- a Panda. It is only black and white with no other color on the dial. This watch was not in perfect condition, but it had one great asset: It came from the original owners family and was only serviced at Rolex USA. It came with the original box, guarantee (now obviously void), instruction manual and booklet as well as original box. This gives collectors piece of mind. The Paul Newman Daytona is perhaps one of the most sought after watches in the world but unfortunately also one of the most ‘forged’. Originality, in this case, comes at a large premium.
You might not know his name. But when he speaks or writes a letter (in this case) it is worth paying attention to.
Seth Klarman runs one of the largest hedge funds in the world ($27bn AUM) called Baupost Group.
His track record in managing and making money is impressive.
Founded in 1982, Baupost Group has had only two years of negative performance. This has made Klarman a billionaire. His investing style is contrarian and he is a deep value investor. He recently wrote an investor letter for his clients updating them on his views.
So what does Klarman think of the current equity market?
He is very worried. Klarman sees artificially high prices due to the Fed policy of near zero interest rates. He sees growing risk and inadequate potential investment return. In his annual letter to shareholders he wrote, ‘ A skeptic would have to be blind not to see bubbles inflating in junk bond issuance, credit quality and yields’. While he does not know when a correction is coming in the markets he thinks investors are being complacent. In a letter to clients he states ‘When markets reverse, everything investors thought they knew will be turned upside down and inside out. Anyone who is poorly positioned and ill-prepared will find there is a long way to fall. Few if any will escape unhurt.’* Klarman’s view on the market is not surprising. He is a value investor who insists on a ‘margin of safety’ on every investment taken. Klarman is extremely risk averse and it is said is main goal is not stellar returns but preservation of capital.
Seth Klarman stands out in the hedge fund world not only for his exceptional returns. He is notoriously publicity shy (not really a hedge fund characteristic) and has rarely given an interview. His Baupost Group is also untypical of most hedge funds. He is known at times to have as much as 50-60% of assets in cash if he sees no opportunity. This is rare in the alternative investment universe where managers can earn large sums on the management fee alone. Instead of the typical 2 and 20, he charged 1 and 20 from the beginning, thereby clearly aligning his investors with his ability to perform.
Unfortunately investors cannot invest with Klarman. His fund has been closed to new money for years. But they can follow his advice. Or they can buy his book which is long out of print and has become an investment classic, ‘Margin of Safety’ on Amazon. But since it is out of print and Seth Klarman rarely gives interviews, the book is in extremely high demand. The current asking price for ‘Margin of Safety’? A cool $3750! No this is not an Aprils fools joke.
So what is the reason for this post on Klarman?
It is simply that I fully agree with the cautious approach taken by Klarman. The US market (S&P 500) has hit a new all time today. While there is a famous saying on Wall street that says ‘The trend is your friend’, we think there are very few investment opportunities especially in the US market. Emerging markets look much better, indeed we see value there, but then again the risks are higher. We continue to wait for a correction in the US markets which will yield better buying opportunities. In the meantime an investor who is under-exposed to Emerging markets would be well advised to start buying at current levels.
(Main photo credit Forbes Magazine, Billionaires list)
*Financial Times, March 1oth 2014 ‘Klarman warns of asset price bubble’ by Miles Johnson.