The Investment Thesis that Earned Adam Sander Millions of Dollars as an Art Collector
Adam Sender is one of the world’s greatest art collectors because he actually has a profound vision for what he loves whereas so many art collectors have very little vision or passion at all. For one to be a visionary, one must have a massive amount of conviction in one’s beliefs and as well as the ability to be as brutally honest about their personal desires as possible. There are lots of art collectors today who collect according to what other people believe should be collected. Collecting art from a position of a follower as opposed to the position of a leader causes people to be fooled because they are targets who will easily fall victim to the trending art of the day. See, what most people don’t understand is that what is trending today is not necessarily what is truly groundbreaking and when someone subscribes to what is trending today, the success of their art may have already hit its highest stride, like so much other trending art that did not move any further. This mindset inevitably leads to disappointment, leading them to quit collecting altogether.
Adam Senders investment thesis is much different because he actually has very strong ideas about what he loves and is uncompromising in his desire to seek it. For Adam Sender, it doesn’t matter if the artist is new on the scene or if he is someone who has been around for long time, if he wants their art then he will invest millions to obtain it. This attitude has propelled Adam Sender to legendary status within the art community. As an art collector, you are almost guaranteed to fail unless you would feel successful if you were never able to sell the art, so you must follow your intuition when it comes to choosing the art that personally inspires you.
Now, I’m going to give you the scenario: one guy buys a Picasso sketch for $5 million. He doesn’t really care much for the sketch, yet, he knows that Picasso’s art will inevitably increase in value. There’s another collector who purchases a piece for $100,000 who doesn’t know if the piece is going to increase in value, he just buys it because he loves it. Now, let’s say the Picasso sketch gains $1 million increase when it is put on the market. That means that that person who bought the Picasso for $5 million now has $6 million. He may have been better off putting his money into a hedge fund or something that would have earned his money a greater increase. Yet, the guy with conviction who purchased the art for $100,000 actually has a chance for that art to increase in value by 15 to 20 times. It is almost impossible for that Picasso to increase in value that much, unless five out of six Picasso’s were burned in a fire, leaving his sketch as one of the very few. The likelihood this will happen is extremely small, so it is very important to make investments based on your heart and not just how much money you plan on receiving for your artwork.