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Buy fractional shares of anything

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01 August 2020, 04:12 PM
Axtremus
Buy fractional shares of anything
https://www.nytimes.com/2020/0...acehorse-invest.html

It seems like nowadays anyone can buy fractional shares of just about anything, collectibles, race horses, vintage cars, designer bags, etc.

It’s an “investment” world that seem all too risky to me.


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01 August 2020, 04:34 PM
Piano*Dad
fractional shares in, say, some very expensive and indivisible thing ... like an art work, for instance, is a way of laying OFF risk. You don't have to own the whole freakin' thing to participate in that market. Yes, investing in fractional art is riskier than investing in a CD or in a basic stock index. But high risk usually goes with high expected reward. So that kind of risk can be part of any well-balanced portfolio of assets.

Now, if you're plopping 80% of your assets in that kind of stuff you're playing with fire.
01 August 2020, 05:36 PM
QuirtEvans
I was all set to point out that many (most?) of these things are securities or commodities, but then the article sort of beat me to it (without actually saying so).

quote:
each horse is part of an entity that has been registered with the Securities and Exchange Commission.


That said, race horse syndicates (which is really just another word for fractional ownership of a race horse) have been around for a very long time. Go watch the movie Secretariat. The main difference might be whether you're allowed to resell without the permission of the managing partner, or your fellow investors.
01 August 2020, 05:37 PM
QuirtEvans
quote:
Originally posted by Piano*Dad:
fractional shares in, say, some very expensive and indivisible thing ... like an art work, for instance, is a way of laying OFF risk. You don't have to own the whole freakin' thing to participate in that market.


I think the word is "diversification". Wink
02 August 2020, 09:05 AM
jon-nyc
We've been trading fractional shares of companies on organized exchanges for hundreds of years.


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