NSX vs Stock Market

[NSXLNT]

I am curious to know what has performed better over the past couple of years as an investment, 45K in the market or 45K invested in a clean, low mileage NSX? I was having this discussion with a friend, and I say the car did better since the market lost so much value. Thanks,
Keith

 

[Tom Larkins]

Thats a no brainer if you been in the market for sometime. I would say that the upper end valued cars havn't faired very well over the same time period as well, however someone at the sales end of it would know better. Just thinking of some of the 02nsx selling @ 75k. I wonder what the will be worth next year.

 

[Lud]

Define what you mean by "in the market". If you spent that $45k shorting all the dot-bombs when they were at their peak, you would have made an asbolute killing.

If you invested it all in Enron you'd obviously be screwed.

"In the market" is too vague to really compare anything to.

 

[nsxtasy]

I'll bite.

Lud is right - it depends on what you mean by "in the market". The most frequently-quoted market indicator is the Dow Jones Industrial Average, which consists of 30 blue-chip stocks. On September 6, 2000, it closed at 11,310.60. Right now, it is trading at 8,431.10. That's a loss of 25.4 percent.

If you had bought a clean used '95 NSX-T two years ago for $45K, it is worth maybe about $41K today. So it has dropped roughly 10 percent in value. Of course, there are operating expenses including overhead (insurance, licenses) that are not associated with the stock market investment.

Keep in mind that, on a percentage basis, cars tend to depreciate faster during their first few years. For example, a clean used '97 NSX-T bought two years ago, or a new '00 NSX-T bought two years ago, probably lost 20-30 percent of its value since then, assuming you didn't overpay when you bought it.

 

[Number9]

OK, how about an actual example? April 16, 1999 - purchase new Zanardi NSX from proceeds of stock sales. Stocks are all tech so let's use the NASDAQ as a proxy. 4/16/99 Nasdaq closed at 2484.04. Today it's around 1295 for a whopping loss of 48%. Boy, the NSX as an INVESTMENT looks pretty good in comparison, losing only about 32% during the same period.

 

[Jonathan]

I will also offer up an example.

I dumped a few thousdand shares of my company's stock in early 2000 to buy my NSX (Then valued at $17.00).

That stock is now valued at $0.24 (I have changed companies since

).

I look at it like I got my car for free

 

[khuezee]

I agree with most of the people and their opinions on specific stocks. I would still go with the market though, cause cars will hardly ever appreciate (especially the NSX) but the market still has a glimpse of hope and will eventually go back up.

 

[nsxtasy]

Originally posted by Number9:
OK, how about an actual example? April 16, 1999 - purchase new Zanardi NSX from proceeds of stock sales. Stocks are all tech so let's use the NASDAQ as a proxy. 4/16/99 Nasdaq closed at 2484.04. Today it's around 1295 for a whopping loss of 48%. Boy, the NSX as an INVESTMENT looks pretty good in comparison, losing only about 32% during the same period.

Most Zanardis sold for low seventies and are now worth low sixties or so. That's not a 32 percent loss unless you overpaid to begin with.

 

[Number9]

Originally posted by nsxtasy:
Most Zanardis sold for low seventies and are now worth low sixties or so. That's not a 32 percent loss unless you overpaid to begin with.

That's probably correct. But most of the Zs probably weren't sold in early 99 in the epicenter of the dot-com boom at the height of the bubble... Anyway, I view it like Jonathan - liquidate irrationally exuberant stocks and turn them into a free car. Much better outcome than staying long in CSCO, SUNW, QCOM, EXDS, et al. which I owned back then.

 

[NSXLNT]

I guess I was thinking along the lines of a managed fund, such as Federated Managed Growth Fund, into which I contribute towards my SEP IRA. Am I correct in feeling that these types of funds are a good indicator of the market's performance, on average, as they are supposed to be evenly diversified?

 

[Timeless]

ALL of the above posts/opinions are great.


I was in the 'investment securities' sales business for over 15 years and I can say they will make you money in the long run.


I owned a new 'NSX'. That NSX brought me HIGHER returns. Experiences that are priceless. The NSX Club of America. Special friends a round the world that you can count on. Attending the annual NSXPO's is a premium. Once you attend one and participate, you are hooked if you have a passion for the 'NSX'.

So, IMO, the NSX wins. Both, for everlasting memories and simply, FUN.

------------------
"LIVE LIFE with a NSX"

 

[nsxtasy]

Originally posted by NSXLNT:
I guess I was thinking along the lines of a managed fund, such as Federated Managed Growth Fund, into which I contribute towards my SEP IRA. Am I correct in feeling that these types of funds are a good indicator of the market's performance, on average, as they are supposed to be evenly diversified?

There are many different indicators. I wouldn't look at one particular fund as a market indicator, for obvious reasons. But there are broader indicators than the Dow Jones Industrial Average. There are even "index funds", a mutual fund which attempts to maintain its portfolio and adjust it so that it represents a weighted average of all the stocks on a given exchange.

However, the real question in looking for an indicator of "the market" is: What market are you looking for an indicator to describe? The New York Stock Exchange? NASDAQ? etc.

The fact is, there are a lot of different "markets", and you can come up with an indicator for each one. There is no single investment known as "the market".

 

[nsxtasy]

Originally posted by Timeless:
So, IMO, the NSX wins. Both, for everlasting memories and simply, FUN.

Good point, Jerry. Keep in mind that a car provides utility (transportation, fun, etc) beyond the simple financial aspects of representing an investment. Most traditional market investments do not (although investing in your own home is another obvious exception).