Wednesday 24 August 2022

Bought a teeny weeny bit (0.013%) of a George Condo painting

After an initial online 'interview' back in July regarding joining with a reduced minimum investment of US$5,000 I still hadn't got around to making an initial investment, although I had been tempted by one of the paintings that was advertised via an email offer a few weeks ago.

Then a 'special offer' came through inviting me to invest as little as US$500 in the painting 'Ecstatic Figures' by George Condo. The painting's "offering price" is $3,885,000 with the shares IPO price $20 each. So I ended up paying US$500 for 25 shares, plus there was a $20 processing fee. For simplicity I just paid this via a credit card, and the total cost ended up being A$758.76. For a 0.013% stake in this painting ;) Interestingly the SEC Filing stated that the minimum investment amount was $15,000 but they could vary the maximum and minimum investment amount 'on a case by case basis' at their sole discretion. According to the filing Masterworks bought this Condo from a private seller for $3,500,000 on 22 July 2022.

Masterworks has previously sold one Condo painting for an annualized return to investors of 31.7% net of all costs and fees. And the historic price appreciation for 'similar works' is 18.6%.

I'll probably add to my Masterworks 'portfolio' over time, depending which paintings are on offer and catch my eye. The amount invested is trivial, so it will be a low risk way of monitoring how this 'investment in art' actually performs over time. If nothing else, it is a bit of fun.

I thought this painting was quite nice - I could at least tell it was a crowd of people, the colour scheme seems coherent (to me), and stylistically it reminds me of Picasso (but what do I know about art).

Masterworks has several paintings by George Condo in their Portfolio, including:

'Staring into Space' $1,760,000 Est. price change 49.4%

'Gargantua' $1,650,000 Est. price change 33.8%

'The Age of Reason' $2,997,000 Est. price change 11.6%

'Listening to Voices' $3,330,000 Est. price change 14.5%

'Mary Magdalene' $644,000 Est. price change 49.4%

'Transparent Figures' $3,413,000

'Ecstatic Figures' $3,885,000

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