Are luxury watches a ‘good investment’ or a ‘stupid flex’? Kevin O’Leary sets the record straight — and reveals 1 big mistake to never, ever make

While watches keep time, O’Leary explained, they also mark time — especially when purchased to commemorate life’s milestones. “Maybe you had a great deal, maybe you had a child, or you went to college, you graduated, whatever it is, you're always going to remember that event from your watch,” he said.

Indeed, many people buy luxury watches to celebrate personal achievements — and O’Leary’s done that himself, many times. But he says there’s one golden rule to follow:

“The real rule is — never borrow money to buy a watch, ever. Just buy a watch you can afford.”

He even offered starter recommendations: “Start with entry level products, great products like Grand Seiko or Tudor and then when something good happens, go nuts.”

To drive the “go nuts” point home, he brought both wrists closer to the camera. On one: a Rolex “Rainbow” Daytona, which can fetch more than $400,000 on the secondary market. On the other: a Patek Philippe Aquanaut Luce “Rainbow” — even more rare and even more expensive.

To be sure, while some watches have appreciated in value over the years, that’s far from guaranteed. Not every model or brand sees gains — and even those that do rarely go up in a straight line.

According to the ChronoPulse Watch Index — a global price indicator for the secondary watch market from luxury marketplace Chrono24 — luxury watch prices surged in 2020 and 2021, but began falling after peaking in March 2022.

For example, ChronoPulse’s Rolex Index has dropped 19% from its March 2022 peak. The Patek Philippe Index — which saw an even more dramatic surge in early 2022 — is now down more than 40% since its peak.

The good news? Watches aren’t the only alternative assets investors can explore. If you’re interested in tangible investments, here are three coveted assets favored by the ultra-wealthy.

Gold

When it comes to preserving wealth, few assets have a track record as long and storied as gold. For centuries, the yellow metal has served as a safe haven during times of economic uncertainty, market volatility and inflation.

Unlike watches, gold doesn’t depend on fashion trends or collector demand to retain value. It’s globally recognized, highly liquid and — unlike paper currency — can’t be printed at will by central banks.

In fact, central banks around the world have been stockpiling gold. Ray Dalio, founder of the world’s largest hedge fund, Bridgewater Associates, recently highlighted gold’s importance in a resilient portfolio.

“People don't have, typically, an adequate amount of gold in their portfolio,” he told CNBC earlier this year. “When bad times come, gold is a very effective diversifier.”

Over the past 12 months, gold prices have climbed by more than 35%.

A gold IRA is one option for building up your retirement fund with an inflation-hedging asset.

Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.

With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.

If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.

Real estate

Few tangible assets work harder for investors than real estate — especially when it comes to generating passive income. While property values can fluctuate — just like stocks — real estate doesn’t rely on a booming market to generate returns.

Even in an economic downturn, high quality, essential properties keep generating passive income through rent. In other words, you don’t have to wait for prices to rise to see a payoff — the asset itself can work for you.

Legendary investor Warren Buffett has often pointed to real estate as a prime example of a productive, income-generating asset.

In 2022, Buffett stated that if you offered him “1% of all the apartment houses in the country” for $25 billion, he would “write you a check.”

Of course, you don’t need billions — or even to buy an entire property — to benefit from real estate investing. Crowdfunding platforms like First National Realty Partners (FNRP) allow accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.

With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.

Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.