Once you decide to start your car collection you have a choice to make; are you collecting or are you investing? This is actually a trick question. You can’t invest in classic cars or collectibles. Investing is done for cash flow, and unless you plan to make a business renting out your classic cars (a topic for another book), they are going to cost money to keep up. Collectibles, like cars, Persian rugs, whiskey and wine, paintings, gemstones, gold and classic cars don’t have cash flows in the present or the future.
…An example of this mindset comes from one of my favorite stories illustrating the nature of wealth and how we work in the present to secure the future, both for ourselves and for the next generations. Tony Deden, of Edelweiss Holdings, believes his job as managing family assets means, first and foremost protecting capital. He has a brilliantly illustrative story about meeting a date farmer who inherited an orchard of nearly a thousand trees. As they’re touring the grounds, Mr. Deden sees a hundred new trees that have recently been planted. He asks the owner how long it will take for the newly planted trees to bear fruit.