When you think of premium, sought-after watches that speak volumes and scream class and prestige, you think of brands like Rolex. They have been making the finest timepieces for over 100 years and have the sort of brand recognition that any company would be envious of. But is there a way for a customer to exploit that, can you buy Rolex stock and own a small piece of this company?
Let’s find out.
Unfortunately, you can not buy shares in Rolex. This is a private company, which means that the share holders are a small few, as opposed to a host of public investors.
Don’t let that put you off though, because there are still ways to invest in Rolex, as we shall discover, and there is also a lot of interesting information about to be uncovered.
Investing in Rolex
If you are interested in investing in Rolex watches, Tag watches and Omega watches and want to know what sort of return you can expect, then checkout our guide to Investing in Watches, where we looks at the pros and the cons of this and focus quite heavily on Rolex.
As far as Rolex stock goes, investing is out of reach. Unless, that is, you’re prepared to table a colossal bid for the company. As discussed below, this is a mammoth brand and a sale would likely be massive as well as highly unlikely.
Rolex Share Value
It is hard to put an exact value on the shares of this company should they ever hit the stock market. They wouldn’t be cheap, we can safely assume that, but the value would be dependent on what share of the company has been placed on the market, as well as a few other factors.
The Rolex brand generates over $4 billion in revenue every year, putting it in line with a few other private companies we have discussed here on Buy Shares In, including Red Bull. But just like the energy drink’s parent company, there is more to the Rolex company than revenue. They have a huge brand, global recognition, and immense market presence, all of which can be priceless to the sort of conglomerates who levy bids in the billions for companies like this.
In fact, the only really surprising thing about Rolex is that they haven’t expanded like other brands of their size have. Everyone from gaming developers like Activision-Blizzard to food companies like Yum Brands have looked to spread their wings and gain a monopoly of sorts. At the very least they have established multiple subsidiaries across multiple industries. Rolex haven’t done that though, and this likely has something to do with the fact that the parent company is classified as a “family private trust”, which means it doesn’t need to pay tax.
The only subsidiary they have is Montres Tudor SA, which is another watch brand and one that has been going strong since the 1940s.
Who Owns Rolex Stock?
The company is in the “hands” of the Wilsdorf Foundation, which was named after its founder Hans Wilsdorf. The German watchmaker founded the brand in London in 1905, before later moving it to Switzerland.
How Powerful is the Rolex Brand?
According to Forbes, Rolex is one of the 100 biggest brands in the world with a listed value of just under $10 billion. They are a premium brand, thought to produce small numbers of high quality timepieces, but they actually make over 2,000 timepieces every single day. This still on the low side when compared to some cheaper brands, but it will come as a surprise to many who still picture these watches being painstakingly pieced-together by hand and numbering just a few hundred a week.
There watches are always of the highest quality, there is no disputing that, and the power of branding ensures that they always have some inherent value other than the previous metal content and the other components used. Rolex are one of the few multinational brands that have been able to retain this aura of prestige, worth and rarity, even though they have continually looked to upscale and to become more modernized. Gibson are another, as they have single factories that make up to 750 guitars a day and they still sell these for over $2,000 a piece.
Will I Ever be Able to Buy Rolex Stock?
It is very unlikely that you will ever see a Rolex IPO. Rolex shares are firmly within the grasp of the parent company created in the name of its founder and visionary and short of a huge sale or a complete financial collapse (desperate times cause desperate measures, after all) then it’s unlikely they will ever seek to take Rolex stock public.
Should that happen, then you have to question the validity of purchasing the stock. After all, if they decide to go public after reduced sales then that could indicate that the brand is failing from the inside out, in which case it’s not the sort of company you want to be investing in. And if they sell up and find themselves listed in the future, then that could also be an indicator of future troubles for the brand. Fashion is fickle and when big companies change hands public perception can change with it–that can be all it takes for a prestigious and valuable brand to turn into a cheap and nasty one.
Brands Similar to Rolex
Many of the world’s most prestigious brands are in the hands of private companies, as well as multinational parent companies. Brands like Gibson, mentioned above, are similar to Rolex in terms of heritage and recognition, and then you have watch makers like Tag and Omega.
If you want to invest in something that has a rich history, then take a look at our Nike investment guide. They may not be as prestigious, but it’s a brand that has been going for a long time, one that doesn’t sell for bargain prices and one that is generally well respected throughout the world. The same goes for Adidas, which is to Nike what brands like Omega are to Rolex.