Invest in art for the long term
Tom Hill, the billionaire vice chairman of Blackstone Group, recommends choosing artists and works that hold an artistic appeal for you. Instead of worrying about how the investment will perform in the short run, focus on the intrinsic value of a great piece of work. If you chase what is really good, you will likely have to pay more than what it seems worth at the moment. But that is the kind of investment, which will multiply in the long run. Ultra-high-net-worth individuals (UHNIs) are expected to increase their portfolio allocations to passion assets such as art over the next decade, according to the 2017 art and finance report by Deloitte. True collectors do not buy with their ears (based on hearsay and speculation), but buy with their eyes. Their collections eventually have a far better chance of delivering extraordinary returns.
