Kevin O'Leary | THE BEST INVESTMENT WATCHES YOU CAN BUY!!
[Music] Hi everybody, Mr. Wonderful here, and welcome to another episode of Wonderful on Watches, one of my favorite topics. In the background are gorgeous aquariums. I love the peace and the harmony of fish swimming while we talk about beautiful pieces of watches made by hand in Switzerland.
You know, here's the thing about watches, and when we get into this journey together, we're both going to learn. Today I argue that watches are actually not just fashion, not just a statement about who you are and the statement you're trying to make when you walk into a room. There are a phenomenal investment. So, if you've never collected watches before and you've only started your watch journey with, let's say, an electronic watch, which really is just consumer electronics, I'm not saying Apple watches are bad. I have many of them. I wouldn't be caught dead wearing one of those when I go out.
You know, when you walk into a room, you only have a chance to make a first impression once. So watches are part of who you are; it's part of your Gupta drama, if you know what I mean. The same as the pocket square or the pen you carry in your pocket, or the cufflinks you're wearing, or the type you may choose to use. These are all part of making a statement, which I really enjoy doing. I love fashion, but let's get back to watches.
Now here's my argument. Let's say you could just snap your fingers and create your own first watch collection. Now how many watches are in a collection? Well, let's get some brown was laid out first watches in my case. This is what I think; you may not agree with me or think I'm crazy, but if you're a collector, you're going to understand what I'm about to say: a watch has a soul. If you buy a watch, you have to wear it. You should wear it at least three days of every month.
Now, people say to me, "Well, how do I keep them all wound if I've got more than 25 watches and I'm going to be putting them on my wrists and taking them off? Do I have to wind each one? Do I have to set the date again after it runs out?" Here's the answer: yes, you do. That's your bonding experience with the piece; that's your time together when you're putting it on, one-on-one, mano a mano, a watch to speak. Sounds nuts? It's not. If you're a collector, that's the whole point.
So I'm going to start us off together today with a collection of just six, but these are the most coveted watches in the world. I'm going to show you six watches that when put together are the most desirable collection you can have today, and they're not all the most expensive watches; they're just the hardest to get. The reason I'm pointing these out, you know collection, I like to throw a little French in there, is that when you acquire these pieces one at a time, they have tremendous aftermarket value.
So let's start our journey off on the right foot. We're gonna be working with three different brands. Now, there are lots of brands of watches, and I'm not saying these are the only three brands you're gonna be dealing with, but when you start to talk about the pillar of a collection, you're going to have to have watches from each of these three.
Number one: Rolex, of course. It's probably one of the best-known brands of watches in the world, and there are many pieces within the Rolex family that are extremely coveted and not the most expensive. We're gonna learn about that today. Number two: Patek Philippe. Now, this is a very storied Swiss watch company, no question about it. They talk about the heritage of the watches; there are certain pieces within the Patek Philippe collection which are extremely hard to get but very valuable and really part of anybody's collection, even though it may take time to get them.
And lastly, I do my peek at, you know, AP, as it's affectionately known by its fans. They have remarkable watches; they probably only make, rumored about, 40,000 watches a year. The Royal Oak is the most famous of them all, so I'll be looking at that as well. So we'll be looking at these three different brands.
Let's start with a Rolex. Your first watch, what should that be? Well, I'm going to introduce you today, if you don't know it already: the steel white face Daytona. This is a legendary watch. Why? Because it sold in auction as a vintage piece for the highest amount in history: Paul Newman's steel white face Daytona with an inscription from Joan, his wife, on the back: “Drive safely.” People assumed it would go for 1 million; they were wrong. It immediately took this mark, this brand of watching, to the stratosphere.
So let's have a look at the modern-day Rolex Daytona white-faced steel. All right, let me show you what it looks like. It's fun to look at a watch this way and see it directly up close. Now, what makes this watch so coveted? I've put a red band on here; by the way, this is my own coupe that I'm all, it doesn't come with a red band. This is an aftermarket band. I'll talk about it in a moment, but it gives it a certain jeunesse a quoi I'm looking for.
Now when you put a new band on a watch, you're making a statement; you're trying to tie it to something else you're doing on a fashion basis. But let's go back and look at this watch. The nickname for this piece in the aftermarket is called the Panda. Now, why the Panda? Because of that black ceramic dial around the front. This is a new addition in recent times to this watch, and it brings forward a really crisp look to the dial. One thing to know about this particular piece: it is coveted by people all around the world, and not just men; women love it too. They often steal these watches from their boyfriends and wear them and never give them back.
That's the notoriety around this watch, because it's such a perfect design. It's just the right weight, just the right size; so many good things about this watch, and it looks great in a fashion way, from really, really dressed down with jeans and a t-shirt all the way to a tuxedo. It's absolutely beautiful.
Now that's not all that's so great about this watch. Let me talk a little bit about this adaptation I've made with the red band. When you modify a watch, and you don't have to do it in perpetuity, you can take the steel and put it back on later, as I do. But I like to shoot television with a red band on my watches; that's what people know me for. When you integrate a new band to a watch, the integration or how it connects to the case into the clasp really, really matters.
Let's look at some detail of this actual integration. Look at how perfectly this integration occurs; in other words, how it looks like it is designed to go directly to the watch's case. There's no gap, there's no missing space; it's a perfect integration. There are many companies that make these aftermarket bands, but I only work with what's called Rubber B. It's a Swiss company; they're real sticklers for the integration. They work very hard to make it perfect.
So when you're adding that red band, you're trying to make a statement as an akuna ball, as an addition. You want it to be perfect, and that's why I use this particular brand, and they do it for many different watch styles. You can go to their website, Rubber B, and have a look at it. But for me, this is the way it works.
Now let's get back to the investment part. One of the things to learn about a coveted watch like this Panda Daytona steel white face is that they're very hard to come by. It's part of the whole process of building your connection. You have to sometimes form a relationship with a dealer network; that's very important because you can't buy these watches directly from Rolex.
Now, great dealers at or know, for example, has a very large franchise in Rolex, or London jewelers. You have to form a relationship with that dealer and then put your lists together and say, "Look, over time, I'd like to build my collection, and here in the watch as I'm looking for number one on your hit parade right now is the Panda."
Why? Look at this. I'm going to tell you about an app you can download for free; it's called Chrono 24. It lets you put your watch into the app and then gives you the mark-to-market price that it just traded at anywhere in the world. So what did I pay for this Panda Rolex Daytona? $13,231.10. What was the last trade in the open market? As we can see here from the Chrono 24 app: $24,473. That's an 80% appreciation.
Now we're starting to talk about investing in watches, and that's what matters. Think about it: an 80% appreciation; that's a big deal. That's why I'm saying you can enjoy watch collecting and also make a great investment at the same time. That's what building a collection is all about.
Let's continue our journey. Now what's number two in our top six hit watches? Well, we're going to go to Patek Philippe brand. Now there's a very, very, very famous watch designer, and why this man is so important is he built legendary watches across two different giant watch franchises. He built for Patek Philippe; oh, he designed watches from Patek, and he also did them for AP, and we're gonna learn about one of those watches in a moment.
But let's go to the legendary Patek Philippe 5711/1A Blueface Nautilus. This beautiful watch was designed by this designer, and I think you've got to get to know me for going down your journey. His name is Gerald Charles Genta. Here he is, my friends. This man is so legendary because no one else has built such huge franchises around design as he has. He was the designer of the Patek Philippe 5711 Nautilus.
This watch has become coveted all around the world, and wait till you see what it's like as an investment. But first, let's have a close-up look at this beauty. This is number two in the hit parade of your watch collection. Look at the design, first of the band, which is really part of the statements you're making with this watch. You can see through the back quartz the actual movement, the coveted Patek Philippe 5711 movement, and then roll the drums, because you're about to see the legendary blue face that made this watch so coveted all around the world. Here it comes.
The thing to know about it is it's a beautifully balanced watch. The original design is rather remarkable. I'm going to explode it for you to look at here, and you're going to find this really interesting because when Genta designed it, he actually put a hinge to make it waterproof. It's absolutely gorgeous in that respect and gives it its distinct look that people see all the time on your wrist.
I'll tell you something really interesting about this watch because yes, it's very hard to find. But again, when you're building a collection, that's not what you care about. You want to get the pieces, even if it takes you years to get them. And it certainly took me a long time to get my first 5711: ten years. But it was worth the wait. I'll tell you why.
Let's look at the economics that's driving this process. The purchase price of this watch is basically $31,373.51. Yes, it's a lot, but is it a good investment? Oh yes, my friends! What are these trading for right now in the open market? $72,295. That's a 123% appreciation! Yeah, that's what I'm talking about.
So you can build your collection, and you can also, at the same time, make great investments. Remembering these watches have to be worn; you can't start collecting watches and never wear them. If you do that, the watch basically loses its soul.
Let's stay in the same realm of what Genta designed because I'm going to take you to a different mark, a different brand. Now, Genta was also the genesis of this legendary watch. Now this is Eddie Mark Piquet AP. This is the Royal Oak. We're going to have a look at one of Genta's designs from the 70s that has become coveted all around the world.
This is the 15202 Jumbo. Now, it's a funny name to call this watch because it's one of the thinnest watches ever made by AP. This is the Royal Oak Jumbo. Now let's have a quick look at it because, again, the band is so important in terms of the design of this beautiful blue-faced watch. Just look at how it shines; it becomes part of the whole experience on your wrist.
This watch is really remarkable in the sense that it has a gorgeous balance to it, but that octagonal design that Genta pulled together became the hallmark of the Royal Oak brand. Now this watch is again very difficult to get, and I must tell you an interesting story about this. I was recently traveling, long flight from New York to Dubai. It's many, many hours, about 16 different, you know, time zones, I should say. 16 hours of flying.
But you can see the distinct look of this watch of the AP, just that octagonal design. And I had it on my wrist, and the fellow across from me said, "Is that the AP Jumbo?" I said, "Yes, it is." He just looked at it and said, "How did you get it?" And this is what's so much fun about collecting watches: you meet other people that are into the same thing, you immediately have a connection.
And I said, "Well, I've been waiting a long time for this watch." He said, "Could I put it on my wrist?" I said, "Never, that's never gonna happen!" But I'll let you look at it. It nearly brought tears to his eyes. And that's what I love about collecting watches; it's such a beautiful statement; it's a fashion statement in that sense that let's look at the economics of this watch now.
The AP Royal Oak Jumbo retails for about $26,892.13. Let's see what it's worth in the aftermarket. Are you ready? I just love to see this. This is extraordinary! The aftermarket value of this watch: $39,783 last trade. That's a 47% increase in value, and of course, it's a beautiful addition to your collection.
It's the number three now within the Rolex family, because we're going back to Rolex now for our number four in our collection. There are four coveted watches. They are not the most expensive Rolexes, but they are the most sought-after by collectors. We're going to meet the GMT II Pepsi now.
Now, the reason it's called a Pepsi is the ceramic color. Let me get you back to look at this watch because what you'll see here is the Pepsi has become desired by collectors because of its beauty. It's got a blue and a red ceramic. The new version comes with the Jillian bracelet. I have modified mine to a red because I love that for when I'm shooting television. But the Pepsi is a GMT and very hard to get, but not that expensive.
The retail price of this watch, let's look at it in detail here. Let's have a close-up of the Pepsi. Okay, here you go, it's just fun to look at this beautiful dial. I think the red band on this looks absolutely spectacular, no question about it. And when it comes into play, look at how that face works so beautifully with that blue and red ceramic dial; absolutely gorgeous!
But I'll tell you what's really gorgeous: look at the value in the aftermarket of this watch; the price at retail is $9,855. If you go to your app, Chrono 24, plug this watch in, it's now last trade globally at $18,832. That's right, kiddies! A 91% increase in value! Oh, just a moment... that brings a tear to my eyes!
So we're building our panda CO, and in each case, getting between 40, 50, 60, 70, 80% appreciation if we're willing to wait. And that's the whole point of this journey; you have to realize that watch collecting is a journey. It is not a destination. It's going to take a very long time to find these pieces, but just like the fish swimming in the tank behind us, you have to be at peace collecting. That's what it's all about.
Now let's go and stay in the Rolex family for another collection piece. This one is called the Submariner Hulk. It's also a beautiful watch because it incorporates the legendary green on green. A lot of people don't know the Rolex official color is green; the boxes are green, for example. Once in a while, they'll put a green dial with a green bezel, and that becomes a Hulk. That's the nickname for it. I love the Hulk; it's an absolutely gorgeous watch.
I think it looks even more beautiful with a red band on it, my incorporation of the Rubber B, which I'll be using when I shoot television. I think it's just spectacular. You know, think about this: this is another watch that is not that expensive but has extraordinary appreciation in the aftermarket. Let's have a little look, a little close-up of this beautiful watch.
You know, you have to think about the Rolex in terms of its value as a collectible, but also it's a beautiful timepiece to be worn. Have a look at the Hulk again; gorgeous in the sense that it's part of that Rolex family, and the weight and the look of it is well-known. But when you see the green on green, as you're about to see here, you get this incredible impression of something unique and new.
But that's not all that matters; again, as part of your collection, you have to think about the desire of other people towards this watch and what they do to it in the aftermarket. So let's see what that aftermarket valuation is. Are you ready? Oh my goodness! Remember the green Hulk retails for $9,680.10? That's what I bought it for. In the aftermarket right now: $15,470. That's a 60% appreciation!
Remember, these are marked to market by the day. This is the last purchase price in the aftermarket of this gorgeous watch, another spectacular piece of your collection. Number five on the list, and finally, and this one is going to really give you a chill down your spine. These are extremely rare. In fact, they have just come onto the market this year.
We're now going to be looking at the legendary Rolex Batman, da-na-na-na-na. Exactly, that's the nickname! This is the Rolex GMT II, legendarily known as the Batman for obvious reasons. You're going to see right now. This watch has just come on the market in the last few months. This is the new 2019 version with a brand new movement that stores, when it's wound, up to three days off your wrist, which is absolutely spectacular.
But the look—and I have the original bracelet on it, the Julian bracelet—absolutely gorgeous, no question about it. Now what's so interesting about this Batman is the look is striking. Many feel that it's the number two desired watch in Rolex after the white face Daytona because of its stark beauty. Yes, it's a sports watch, but look at how crisp that look is, how gorgeous it is on your wrist; again, whether you're in jeans and a t-shirt or you're putting it on with a tuxedo.
The band is also beautiful, and you can love that band for what it is or take it and modify it with a Rubber B, as I like to do. The point is, when you see the extraordinary aftermarket, and it's probably because it's so rare right now, look at what this watch is valued for in the aftermarket. And I'll tell you, it's rather extraordinary. I'll give it to you just by the numbers; this thing is amazing.
Because the Rolex Batman retails for $10,070.94. I waited quite a while for it, but the aftermarket today—o could halt, as they say—is $23,104. That's a 129% increase! Oh, now you know what I'm talking about here! These watches aren't just beautiful because they're collectible; they're beautiful because they're fantastic investments. And that's what you should think about.
You take a watch like this Panda with this red band, put it on your wrist, you're making an absolute statement here. And I'll tell you why: that red band works with my red, you know, square pocket. And then, of course, oh my goodness, look at that! I'm putting together a look, a feel, a statement: red on red on red, absolutely gorgeous with a black crisp suit on a white shirt.
This is what I'm talking about; you lift your hand, look at the time, the watch shines; it becomes part of your persona. You will never see me with a consumer watch on, like an Apple watch. Nothing against Apple—a great company—but I don't want to be a drone walking around like a robot like everybody else. I want to make a statement; I want to be part of my collection.
I would never put an Apple watch on; it connects you, and I'm not gonna get 129% appreciation. I bet you that watch loses 30% when you walk out of the store. The watches I'm talking about here are going to be your first collection; it may take you years to get them. But let's have a see, let's take them down on the dance floor again—all six of these beautiful watches—all together.
Let's have a look at your collection. Are you ready? Oh, the Panda, isn't that beautiful? What's next on the hit parade? It's the Patek Philippe Nautilus, just gorgeous; no question about it. Right beside it, designed by Genta also—that's that AP Royal Oak. Beautiful, beautiful watch!
Back to the Rolex family, there it is, the Pepsi with the red band, and of course, the Hulk! Isn't that gorgeous? And now finally in your collection, number six: the Batman, da-na-na-na-na. And now they go round and round again.
This collection on average has practically doubled in price, and of course, that's why I love it so much! What I love about watches is you're having a fantastic time wearing them, but you're also investing in this platform of these beautiful watches. Now many will debate me and say, "No, those aren't the first six you should get." I'd love to have that debate with any of you; I love to talk about watches.
But what I've just given you here is probably the most coveted collection in the world, starting with these six. You can't go wrong from the beauty on your wrist to what they've done in your bank account as an investment. And that's what I'm all about; I love to marry beauty with returns.
That's it for this edition of Wonderful on Watches. I can't wait to join you again. I've got a really big surprise coming up in a few weeks—a remarkable new watch that's just made it on the market. I should be getting it around two weeks from now, and I'll be right back to you with it when I get it. I think it's gonna be a wonderful investment.
So for now, goodbye and enjoy your collection. Nothing like it, just love talking about! [Music]