Art and Investing

“When something is exceptionally good, it is far removed from the average.” That observation by Graz gallery owner Helmut Reinisch stayed with me. The better and more unusual a work of art is, the further it often sits from mainstream taste.

“The unfamiliar feels foreign. And we are less inclined to like what feels foreign. It can leave the viewer uncertain, sometimes afraid, or even angry,” he adds.

For decades, my brain has been trained to look for parallels with the investment world. And it usually finds them. New and unfamiliar stocks can trigger the same sense of uncertainty.

Do You Speak Greek?

We identify an opportunity and add the stock to our discretionary portfolios. In July, for example, we bought a company whose share price had fallen 30% over the previous twelve months. That can certainly cause anxiety, and perhaps even a little anger.

Once again, Mr. Reinisch finds the right words: “The unfamiliar seems Greek to us. But Greek only seems Greek as long as we do not understand Greek.” That is why we are always happy to discuss new holdings with interested clients. Once you understand the business model and realize that the share price has tripled over the past ten years, the picture begins to look rather different.

Gallery Reinisch, incidentally, has a temporary presence on Getreidegasse in Salzburg during the festival season. We recently held a client event there that taught me a great deal. If you are in the area and would like to join us next time, please get in touch.

The Gutmann Viewpoint is taking its summer break.

The Karas family will spend August away from both the Salzburg Festival and Austria. We are traveling through the Baltic states for the first time and are already looking forward to it.

The next issue will arrive on September 4. It will already be number 266. Until then, I wish you a wonderful summer.