How to Invest in Art

A Financial conversation Referencing Artist, stocks and You.

My thought process behind writing this has a lot to do with the fact that of all the things I consider myself, I do with a True Heart consider myself an artist now. with that being said, I am also an investor. Now,  let's not mistake me for some type of financial advisor or even a wealthy independent investor, but I'm doing ok so far with my portfolio.

This brings me to other artists. Living a modern New York Life where many of us creative types are comfortable enough financially to hopefully plan a next day meal (let's not mention the rent, our souls take care of the bulk of that in the city.), but between balancing our daily “balance” while trying to include our dream jobs and hobbies into said balance money, can get a lot little tight.

Maybe, in the long run, it doesn't have to be. Consider this;  If Art is your way of life, and life includes many aspects, least of all financial investment, then why not begin to understand and invest in some of the broader Associated aspects of art?

Photo by rawpixel on Unsplash

Investing in art: Stocks

First, what are Stocks?


To better understand the answer to that, here are two quick links that can give you a crash course in what stocks are and how do they work.

What are Stocks? (about a minute and a half watch)

How does the stock Market work?  (About 5 minutes)


Here's a quick breakdown for everyone else;


Stocks are shares in a company that is traded publicly, and that an individual can buy. This is what's considered an investment. in a nutshell, what that means is you are investing in a company and as it grows so does your investment. This is a good way of gaining assets and diversifying your money. In some cases, stocks will offer a dividend. Check the link below for more on what a dividend stock is. To keep moving forward with this overview, thank of it as an annual or quarterly return on your investment. In short, you get paid a small percentage of the companies Profits or Reserve funds Based on how many shares you hold.

What are Dividend Stocks?


Now that we have the basics covered, let's talk about art stocks and why you should invest in those as well as others that fit your interest.


if you're an artist or just generally appreciate fine, contemporary, or Modern Art And you want to find ways to better secure and diversify your savings and finances, why not invest in something you're pretty familiar with?  the point of being familiar with what you're investing in is obvious, you're more likely to understand how the investment benefits you and how it works in the actual Market.


lets really get a good understanding How this works as we consider a place most of us have been to a few times. that place is Michaels Art Supply! Michaels is a publicly traded company who's per-share stock value is at $13.61 right now(February, 3rd 2019). Which is more than a third of its nearly $30 per-share value about four years ago. This information is important and we will refer back to it later.


{ link to The Stock - The Michaels Companies, Inc.}


Based on what you understand so far and if you're new to stocks then you’re probably thinking that A; oh wow that's really cheap now. B; Looks like it lost a lot of value over the last couple of years. Or C; Is $13.61 even good? All of these questions and many others related to it are very good questions. To try to answer them let's just say yes yes and its all relative.


What to gain from this type of Stock

Experience!

As an artist, buying one share of a stock like this to begin your venture into stocks and investment is a worthwhile risk in my opinion. What we're basically doing is taking the price of a decent NYC lunch and investing it in something that we understand in one part and want to learn about in another.

This is assuming art is on your radar. If you go to Michaels art supply stores, buy different, old or new products, or even if you look the companies up to see what's new, then this type of investment will help you understand the broader spectrum of Stock Investing. What will happen is, as you're involved with this company of yours, you become more familiar with it and understand how its progressing. You might see news articles or post about its Sales, expansions, company store closings, or an array of other information that may impact your perception and shopping at that store.

This is good for investors who are trying to learn the ropes because the same information you've seen that inspires you to make your individual judgments is the same information shareholders are paying attention to estimate how that stock might potentially perform. Think about like this, if it's a reputable company and it's been doing well for years and it releases a new product, and that product has you as a consumer excited, then that makes the market excited. And when the market is excited and the company has more attention, well it just makes the company look more potentially profitable. Which makes those shares gain a little more volume. now of course bad news can have the opposite effect on the value.

This is why it's important to be a smart investor. And one of the best ways to be a smart investor, it's to actually understand the companies you're investing in. Invest in things that you know or have an interest in. For all you lovers of all things Apple out there, how many of you have every Apple product excluding 1 share of its stock?

How to Gain Experience

Buy A Share of a company you know and track its progress!

Collectively, you will spend a few moments a week (that's minutes, not hours out of 1 whole week?!) updating yourself with the Information you need to understand how your investment is doing. general information can be found on the investment platform you use.

One of the very user-friendly platforms I use is the Robinhood app. Full disclosure: if you use my link to sign-up I will receive a free stock and so will you. Even if you don't click the referral, you can easily find it for yourself in your app store or wait to see one of those Sign-up bonuses commercials. Once again, it's a great way for beginners to start investing in stock. One of the main highlights of Robin Hood compared to other platforms is free Trading. Many platforms/brokers will charge a small fee per trade. this isn't inherently bad, and most times these platforms offer more options on what type of stocks you could buy. No matter what you use, take a minute to read the terms for yourself.

With “Michael's” stock in mind, and based on trading in Robinhood, About 60% percent of investors Say this is a buy, while roughly 30% say to hold on to it. Lastly, approximately 10% say sale it (as of 2-3-2019). If you Buy it at its current value, and the price goes up a couple of bucks, then you would have gained that difference in value. Understand this allows you to see how Traders make a profit. They buy stocks when they are low, and sell them when they are high or have potentially peaked in appreciative value.

If you want to start investing and just need to have some of your money set aside to gain value over time, Or if you want to start trading stocks and gaining a small income from gaining value differences,

Remember, the best way to gain experience and results is to start.



If you found this information useful and would like to continue a conversation about stocks and other Investments please comment, share, and check back in with us for more.







DISCLAIMER: I am not a financial advisory. The information and opinions provided are for educational purposes and are in no way a comprehensive guide to how you should manage your money.

AFFILIATE DISCLOSURE: I am a user of the Robinhood App and do not work for the company. Referencing it was not a paid endorsement in any way. A am not an Affiliate of, nor do I work for Michaels Stores in any fashion.

HOLDINGS DISCLOSURE: I own shares of  The Michaels Companies, Inc. (MIK) in my portfolio.

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