A Study Of The Viability Of Automotive Investment

Turco, Gian-Francesco

Publication

A Study Of The Viability Of Automotive Investment

Turco, Gian-Francesco

Date

2016

Additional date(s)

2016-05-19

Abstract

This paper is a holistic examination of the viability of automotive investment as a tool within wealth management. I wanted to combine the available qualitative information on the space with a returns analysis of my own making-- using data from various auctions and online sources-- to form an idea of how repeatable positive returns from automotive investments are. I approached the problem from the perspective of a business-- could you charge a management fee on portfolios of varying size and still generate outperforming returns? The resulting analysis showed that generating positive returns is difficult with smaller portfolios, and that returns grow progressively with the size of the portfolio, indicating that the more expensive, "blue-chip" vehicles are more likely to appreciate in value.