What Goes Up, Must Come Down…

On the way up, every buy is a good buy, because mistakes are papered over as the market rises. On the way down, every buy is a bad buy

by Jim Schrager

The only constant in the market is change. While our vintage Porsche market has enjoyed an upward curve for the past several years, it may not continue. The key to success is to understand the rules of the market and how to play the game. Success can be found in all markets, but only if you have a sense for how to dance differently when the music changes.

When markets accelerate quickly, there are great opportunities to make money, but fewer opportunities to accumulate cars. If you are trying to build a collection in today’s market you can certainly do so, but you need to be willing to risk being underwater for some time.

Every car bought in a market like this brings with it not only a high price but an added bit of special risk, the risk that the market may change while you own the car. Market changes can happen quite suddenly. As in musical...