Saturday, July 19, 2014

"The current value of the trust’s art collection, Shniberg says, is around $125 million."

Bloomberg's James Tarmy has a lengthy, interesting piece on the Artist Pension Trust, which is getting ready to start selling some work.  I guess the proof will be in the pudding, but I've long been a little skeptical for the reasons Tyler Cowen articulated here.  Cowen's bottom line:

" ... decompose the transaction.  Half of your income stream remains tied up in your own art and thus risky, minus the [28%] of course.  With the other half of your pension you decide to invest in not-yet-totally-famous artists.  Would anyone recommend such purchases on their own merits?  Is that your idea of insurance?"