A $20,000 Rolex Can Cost More Than a $1,000,000 Watch

A $20,000 Rolex can be more expensive than a $1,000,000 watch. That sounds ridiculous, but the sticker price of a luxury watch tells you surprisingly little about what it actually costs you. In this episode, I look at watches through the lens of economics, psychology and behavioral finance: opportunity cost, compound returns, lifestyle breakpoints, happiness, status signaling, conspicuous consumption and the very strange relationship between wealth and luxury. We’ll look at why a $20,000 watch at 30 can cost you six figures of future wealth, why Sam Altman can commission absurd bespoke watches without meaningfully changing his lifestyle, why luxury brands really can affect how people treat you, why rappers mention Rolex, Patek and AP constantly, and why seeing your neighbor get richer can literally cause you to spend more money. The question isn’t simply whether you have enough money to buy the watch. It’s whether what the watch adds to your life is worth what you’re giving up to own it. #Watches #Rolex #LuxuryWatches