A Squared said:
I see that you aren't any better at finance than you are at deciphering indirect commumication[sic].
OK, first off $2500 today isn't worth anywhere near $2500, 20 years ago. If you use the Bureau of Labor statistics' Consumer Price Index, you'll find that it's worth about $1359, so right off the bat you've lost $1141. Now, having your money tied up in a wach[sic ] has a cost. It used to be that oppotunity [sic] cost was one of those things they taught in the first week of freshman economics, don't they do that any more? If you had invested that $2400 in a mutual fund which showed an average return of 8% PA, the value of the mutual fund now would be $12,317, so without mixing in your loss due to inflation, it cost you $9,817 to wear that watch on your wrist. (even at 5% interest, your cost is still about $4200) So yeah, it cost you a fair amount of money to own jewlery[sic
Thanks for your concern for my financial well-being and the economics refresher. Yes, I understand about inflation, the time value of money and the concept of economic opportunity loss. I think, perhaps, you need to recall the idea of
marginal utility and Adam Smith’s “paradox of water and diamonds”.
In spite of my financial ineptitude, I’ve managed to build a seven figure brokerage account, a mid six figure 401K, maintain a vacation home on Hilton Head Island, acquire the benefits of two defined benefit pension plans and am working a couple of 1031 exchanges. Can you imagine what I might have accomplished had I known what I was doing?
A Squared said:
Even if you intentionally placed yourself in a situation where accurate time was critical; say you're sailing around the world, and making it a point of pride to navigate solely by astronomic means, not using GPS, or even using the time capabilities of a GPS receiver, and even eschewing using a broadcast time standard, you would still be far better off by taking three $50 quartz watches and a supply of batteries than a $4500 chonometer[sic, as the time from the quartz watches would be much more accurate, and the redundancy would provide much more reliability. (3 watches would provide cross checking with a tie-breaker when one started to lose time)
You realize, of course, the absurdity of your suggestion, right? Additionally, not every thing I fly has a reliable panel clock, so while wearing a wristwatch might be practical, wearing three is not.
A Squared said:
Let's be honest, you weart[sic] an expensive piece of jewelry because you like to wear an expensive piece of jewelry. So you like expensive jewelry, nothing wrong with that, I suppose. When you start trying to rationalize it as a necessity, you fail, and you make yourself look silly in the process.
While I might like expensive jewelry, I don’t know how you consider
stainless steel professional watches such as the Omega SeaMaster GMT and Rolex GMT Master as such. They’re tools. One’s a dive watch, the other a pilot’s watch.
The Rolex GMT was developed for PanAm's Juan Trippe by Rolex working in conjunction with PanAm Captain Frederick Libby (a decorated World War II veteran and one of the airlines most respected navigators) for use by PanAm cockpit crews. Initially they were free issue to the crews. So the watch has a long history with pilots.
I buy watches with discretionary income, in some cases their appreciation in value has made it relatively inexpensive to upgrade. In all cases I’ve enjoyed their ownership. My Omega Flightmaster is worth over 1000% more than I paid for it. And the watches
are reliable, what initially provided me the impetus to buy my first Rolex was that I had a Seiko quit on me while I was logging combat time.
Being designed for our line of work, they are convenient and easy to use. For instance, the Quickset feature that allows me to quickly change just the hour hand to a new time zone without affecting the time or the minute/second/GMT hands is something I use daily.
Using your line of reasoning I should never buy a Porsche, a BMW or a Mercedes, because a used Chevy will do. My 5,500 square foot home is certainly overkill when a trailer would give me shelter. What good is money if you can’t buy anything with it?
GV