CHANEL purse vs. Stock Options

There is something magical about Chanel purse. But this is not what some men think. Unfortunately. There is also a lot of fun to own some high-risk stock options. Fortunately, most women know little about it. Let’s see.

I never made any serious money on the stock market. But, I am a lucky owner of a Chanel purse for almost a decade, and I can attest that I wore it at least a thousand times. It goes well with any outfit: jeans and striped shirt, business suit, and, of course, a little black dress. Now, when I am thinking, I can actually say I wear it almost daily. In the past 7 years it became a part of me. If you wish, part of my identity.

Being a financial person inside out, I often think that for every time I wore this designer masterpiece it cost me just short of a dollar, and made even mediocre outfits look at least “interesting”.

You can understand how I feel, when I hear some husband (or soon-to-be-ex) complaining his wife splurged good few thousands of dollars on a … Chanel Purse.

It particularly fascinates me, that the very same husbands forget to say how much some of them splurged on hockey games, beer nights, insanely expensive stereo systems, or, how the entire bonus had vanished on the unlucky bets on the stock market.

It was when I was preparing a financial statement for one couple, one husband kept lamenting about his wife spending almost $3,000 of a purse of such kind. He was so upset about it, that we could not move forward until this issue was somehow addressed. I kept thinking if Chanel, indeed, was a reason for their separation.

I stopped my billing clock, brewed him a cup of tea, and asked him to take a deep breath and open up his mind. This is what I told him.

 

  • You can buy a purse for $60, but shortly afterwards it will either fall apart for its low quality or you start hating it. So, we buy another one – different colour, then another one – different style, and another one – just because.
  • As a result, it’s not unusual when dissatisfied women hit the shopping malls and buy, buy, buy in hopes to get satisfaction. My own observations show that few hundreds of hard-earned dollars are spent every year in this kind of frenzy.
  • In 5 years you easily spend $1,500 in search for the right “look”. And, the look is not there. Time and money are spent, and the walk-in closet is cluttered.
  • With a designer purse, you enjoy it for years, even decades. This is why there is a market for vintage and retro designer items.
  • Any outfit – no matter how simple – looks chic;
  • There is always a secondary market for these items, so selling anything Chanel on e-bay, www.kijiji.ca is a matter of few days.

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Options                                         Monthly, Yearly,  Spending                                      Residual Value

 

  1. Cheap                                    $100/m; $1,200/y; $12,000/decade                           $0 plus clutter
  2. Expensive                    $2,500 per piece, enjoyed for 10 yrs, $20.00/m;               30-50% *

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Difference (if pick Chanel)                         Lots of fun and enjoyment                                $1,000 plus

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(*) If kept in a good condition, which is easy given the quality of the piece and your own attitude to it.

My client was astonished by this simple math, and agreed that his wife appeared to be not only woman of style but also one of a great mind.

When I suggested to review his stock option losses he politely suggested to leave it for another time. And, I know why. When compared to most of high-risk volatile investments any designer purse   – lovingly made and carefully crafted, making your wife happy – will surely win the race.

This couple did not proceed with a divorce. I saw them downtown Toronto once: well dressed, happy, holding hands. And she… was carrying her beautiful Chanel purse…

 

Tatiana Terekhova

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