Since the focus of this blog is investments, I’ll post about what fashionistas call as “investment pieces”. From a perspective of an investor and not a fashionista, do these things really exist?
Fashion pundits throw the term “investment pieces” as if they were Jordan Belfort – played by Leo DiCaprio in The Wolf of Wall Street – throwing money off a yacht.
How do fashionistas qualify an item as an “investment piece”?
- It must be expensive or must come from a brand known for selling expensive stuff. I’m taking about Hermes, Chanel, Louis Vuitton, etc. You have to plunk serious money to get an “investment piece”. So how about the fabulous store-brand sweater you bought at Target? Investment piece it’s not.
- The item must be of great quality or generally perceived as having great quality, since the item is expected to last for a long time. Quality and specially the perception of it don’t come cheap though. So how about that “fabulous” and expensive Balmain “distressed” shirt from a few seasons ago that sold out quickly? I’m betting Balmain fans didn’t buy it for its quality.
- The item must be trend-proof, meaning it is something that will still look fashionable after many years, or decades even. Think “little black dress” or “navy blazer”. So how about the Juicy Couture Velour Tracksuit that was the “uniform” of celebrities a decade ago? Based on what happened to the Juicy Couture company itself, I’m guessing it didn’t become an investment piece. If you still want the look (as a period costume for the 2000’s perhaps), you can get the Juicy Couture hoodie for US$ 36.00 and the matching pants for US$ 32.40 at Kohl’s.
- It must be easy to coordinate with your other wardrobe staples. You must be able to vary the “look” of the item based on what you’re wearing it with. Think about a classic silk top that can go from day to night with a quick change of accessories. How about that fabulous Chanel Hula Hoop bag? It’s Chanel, it must surely be an investment piece, right? I’m guessing that if it becomes an investment piece, it will be for other reasons.
- The item must have high resale value. This is what makes an “investment piece” an investment in the true sense of the word. The item must hold or increase its value over its lifetime, even in a “used” state. The undisputed champion in this category? The Hermes Birkin bag.
The high resale value of the Birkin has been repeatedly discussed in this very popular handbag blog and forum. Even the Wall Street Journal weighed in on this. If the Birkin is the ultimate “investment piece”, what is the runner-up? The Kelly – another Hermes bag.
If you want to know more about these investment pieces, read what real fashionistas have to say, because I’m not one, even if I try to be.
– Finance MD