Sotheby’s is one of my favorite long term holds for a variety of reasons, the first being the divergence of classes in this country, and the world, widening– providing an avenue for the super elite to spend their excess cash reserves. The other reason why I like BID is because it will eventually get a buyout, or someone will attempt it. It is the ultimate show piece for any billionaire.
The vast majority of growth at these auction houses emanates from the east, ripping off newly minted millionaires in China. This is the reason why the price of art, first growth wine, and other collectibles have been soaring: Chinese demand. What I didn’t realize was how closely the shares of BID tracked with the MSCI.
Fascinating.
The company just recorded a stellar quarter. Profits were way up, led by a 22% jump from Hong Kong.
The stock is up 13% today.
In other words, Sotheby’s is China and is tied to its fate. Food for thought.
