How Entrepreneurs Protect Their Wealth

The Stamp Man

The Stamp Man

2018-11-14 14:01:36

The Victorian “Magnificent 7” Collection

Entrepreneurs are born not made…

So, what singles out entrepreneurs from the rest of society?

My main observations are that entrepreneurs:

  1. Think outside of the box
  2. Do things others don’t (or won’t)
  3. Risk their own capital
  4. Are super-competitive 

Successful entrepreneurs apply these very same techniques after they’ve made their money – to protect it.

That’s why, I think, so many successful entrepreneurs have been clients of mine over the years.

In fact, the rich and famous have used stamps to protect and grow their wealth for centuries. There are some big names in the list such as the Rothschilds, Eli Lilly, Warren Buffett and, the most famous of the moment, Bill Gross of PIMCO.

Entrepreneurs think outside the box and have a higher appetite for risk than most of us.

One thing they are unlikely to do is watch their hard earned wealth fester and decay against inflation in low interest bearing savings accounts.

Entrepreneurs will inevitably look to other ways to protect and grow their wealth in times of low interest rates.

Obviously, they will likely put most of their capital in mainstream investments including the stock market and property.

They are also more likely to look to alternative investments, which include stamps and other collectibles.

In short, they bought stamps as an investment when others didn’t or wouldn’t.

Some of my clients became really competitive and focussed on building the best collection in the world in their chosen areas of focus.

They would then go on to present their collections at International Stamp Exhibitions (the equivalent to the Olympics in stamps). Being so competitive, they inevitably walked away with Gold Medal awards.

I think a lot of my entrepreneurial clients have derived the most satisfaction from stamps in this way.

Firstly, they probably loved the thrill of winning a Gold Medal and beating all the other collectors.

This sort of success brings huge recognition within the philatelic world. I have watched a few of my clients enjoy the attention from becoming “famous” within philatelic circles.

Their investment ended up becoming more than just a hobby or way of growing their wealth. It became all-consuming and took over their entire social life, bringing fulfilment in so many more levels.

Entrepreneurs are usually very astute in what stamps they buy as an investment.

They tend to focus on the rarest of stamps and gravitate towards the “classics”. It is certainly a strategy that seems to work.

An Entrepreneur’s Investment

I have assembled a collection of 7 Classic Victorian stamps, the "Magnificent 7”.

Some of the stamps were previously in the collections of the successful entrepreneurs I refer to above.

It is a collection which I doubt could be replicated due to the rarity of the classics in the collection, together with the exceptional level of quality of each stamp.

I am proud to be in the position to offer this collection which includes some of the most famous British stamp classics from Queen Victoria’s reign.

The collection has a total retail value of £275,500 ($370,327). I am able to reduce this price, for the full collection, to £250,000 ($336,050) (9% discount). I could not go lower than this and is my best price.

The investment credentials of the collection are obvious…

I have looked back to when I first started in the stamp market (18 years ago) and compared prices then to today’s prices based on SG catalogue values.

You can see the results in the table below:The “Magnificent 7” collection has shown growth in value of 279% over the past 18 years (15.5% pa). 

This long term double-digit growth is what attracts so many entrepreneurial investors into the stamp market. 

To put this into perspective, 18 years ago today, the FTSE100 index closed at 6,431 and, as I write, it sits at 7,104 (just 10.5% growth). 

The "Magnificent 7"

I am delighted to now present to you 7 Magnificent Victorian Classics of philately:

1. 1840 2d Mulready Envelope, SGME4,2

Mulready stationery competed with the postage stamp in the birth of prepaid postage. This rarity is widely considered one of the greatest in British philately. 

Mulready envelopes were only in circulation for two months from May 1840 (same time as the penny black). Despite their artistic beauty, Mulready envelopes did not take off and the prepaid postage stamp won the battle for postal supremacy. 

This is one of only two recorded 6d frankings in existence based on four penny blacks in addition to the 2d Mulready.

Exceptional provenance: it was once part of a Gold Medal award-winning collection owned by a successful entrepreneur (and now world-famous British philatelist). 

PRICE: £125,000 ($168,025)

CLICK HERE TO VIEW FULL DESCRIPTION

2. 1882 5 shilling rose (plate 4), Mint SG130

The 5 shilling rose epitomises the golden era of the Victorian postal revolution. 

This rare printing plate on blued paper is an incredibly elusive stamp to find in mint condition. 

The quality in terms of freshness, perforations and centring makes this one for the “philatelic connoisseur”. 

PRICE: £40,000 ($53,768)

CLICK HERE TO VIEW FULL DESCRIPTION

3. 1851 2d violet blue plate 4, SG15aa, unmounted mint

The rarest colour shade of the famous “tuppenny blue”. 

Despite being much rarer, it is valued at £10,000 less than the normal 2d blue.

Less than 20 known examples in existence.

This is one of the best quality examples in existence with large and even margins, fresh colour and full original gum. 

PRICE: £28,000 ($37,638)

CLICK HERE TO VIEW FULL DESCRIPTION

4. 1847 1-shilling pale green, mint SG54

Britain’s embossed stamps were a failed stamp experiment and only lasted 7 years before being replaced by surface printed stamps. 

Due to the complex production process, few embossed stamps exist in such fine condition as this example with large margins. 

Comes with the highest possible provenance, previously belonging to Her Majesty Queen Elizabeth II, residing in the Royal Collection at Buckingham Palace. 

PRICE: £28,000 ($37,638)

CLICK HERE TO VIEW FULL DESCRIPTION

5. 1840 1d Black, Plate 9, SG2 unmounted mint

The best quality example of a penny black you could hope to find - a stunning mint example of the world’s first postage stamp with full original gum. 

Iconic and desirable to collectors all over the world, evident in its price growth over the past 18 years of 367%. 

Difficult to find printing plate (plate 9), which accounted for just 5% of the total number of penny blacks printed. 

PRICE: £25,000 ($33,605)

CLICK HERE TO VIEW FULL DESCRIPTION

6. 1884 5 shilling rose, mint SG176

A beautiful example of this classic Victorian stamp and, I consider, much rarer than its current valuation suggests. 

SG catalogue quality at a 17% discount to the SG catalogue price of £18,000. 

Presented with two independent certificates of authenticity (British Philatelic Association and David Brandon). 

PRICE: £15,000 ($20,163)

CLICK HERE TO VIEW FULL DESCRIPTION

7. 1882 £5 Orange (white paper), unmounted mint SG137

Sometimes referred to as “the special one” - widely adored amongst collectors, but a sad space in most stamp albums. 

One of the most iconic and visually appealing stamps of GB philately. 

This example is flawless and should command a premium valuation. 

PRICE: £14,500 ($19,491)

CLICK HERE TO VIEW FULL DESCRIPTION

Join the premier league of philately

All stamps in this collection belong to the premier league of philately. Most collectors can only dream of owning philatelic treasures such as these.

So, I do understand that with a price of £250,000 ($336,050) for the Magnificent 7 collection, I am speaking to a smaller audience than normal today.

That is fine as I can only sell the collection to one person. Not only that, I probably could never hope to assemble a collection of this quality again in my lifetime.

When you buy the rarest stamps in the finest quality you are joining the entrepreneurial stamp investors. They are the ones that have consistently done well out of stamps over decades.

The historic growth in value of this collection provides factual evidence in support of this assertion.

The 7 stamps in the collection come to a total price of £275,500 ($370,327). I have reduced the price of the collection to £250,000 ($336,050) (9% discount), which is the lowest price I would accept.

Although I would prefer to sell the collection as a whole, in the absence of any takers, I would be willing to sell individual stamps within the collection. So, if there is a certain stamp you desire, please let me know.

To secure the collection or to express an interest in acquiring any stamps from the collection, please email me at mike@paulfrasercollectibles.com.

Finally, you can always call us on +44(0)1534 639998.

I look forward to hearing from you. 

Kind regards 

 

Mike Hall

CEO, Just Collecting

PS. We are also able to offer you secure storage and insurance if you would like us to look after your valuable collection for you during your period of ownership. We can also provide you with annual valuations and will be there to assist you when you decide it is time to sell.

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