Mishal Al Khodari’s first watch, a “classic and simple” Patek Philippe, was a family heirloom that was gifted by his mother during Mishal’s high school years and that belonged to his father. It was certainly not his last. Today, his timepiece treasure trove counts some 20-plus watches. Something old, something new, something bold, something blue – and zero regrets, at that.
Even in his earlier collecting days, Mishal’s penchant for taking risks on big – but always calculated – bets was clear. At the age of 17, the first watch Mishal bought himself was from Harry Winston’s Ocean Collection. “At that age, I didn’t care about the resale value, the appreciation [of the timepiece’s value] and what not. It was more of a fashion choice rather than an investment,” he explains. A second Harry Winston watch and a DeWitt into his then nascent collection, Mishal slowly began shifting his collecting philosophy into passion investments, starting with the AP (Audemars Piguet) references. “The first was the AP Safari, then [it was] the Royal Oak Offshore Tour Auto, and then, the Forged Carbon.” And then, Mishal bought his own Patek Philippe at an exhibition after much mental deliberation. “I got offered this Nautilus Chronograph Blue Dial 5980, but I wasn’t convinced [that I should buy it]. I left the first day. The second day, I came back. I had decided that I liked it. It was sporty, classy,” and today, one of Mishal’s favorite timepieces.
In the late 2000s, as the conversation was growing around the investment value of fine watchmaking, so did Mishal’s collection – including an A. Lange & Söhne World Time and AP Skeleton. “The more watches I bought, the more knowledge I gained on what to buy and what not to buy. When I turned 27, I shifted my focus toward pieces that [didn’t necessarily increase] in value [over time], but rather, held their value”; a considered approach to mitigating his collector risk and reward at a time when global economies were still reeling from the devastating 2008-2009 financial crisis. “I made a conscious decision that even if I am going to buy a watch in that [big-ticket] price range, it should at least hold some value. Otherwise, if I am going to take a hit, it should be considered an asset and shouldn’t depreciate by more than 20% or 30%. [The crisis] shifted my approach to spending on both cars and watches.”
With somewhere north of ten of Patek Philippe timepieces in his collection, including the 5980 two-tone and the Panda Dial, Mishal’s growing appetite – and budget – for experimentation have led him to more unique and rarer items. “I got the 5167/300G (Patek Philippe Aquanaut with the baguette set) two years ago. It is the masterpiece in my Patek collection. I wanted the green Aquanaut, but the boutique told me about this off-catalogue piece, one of five in the world. It stayed in my watch display for four or five months until I had the courage to wear it. I wore it for the first time for a casual dinner at home. I felt very comfortable wearing it. Now it’s one of my favorite pieces, and it triggered me to get other [rare pieces],” he says, including the Patek 5520P-001 Platinum (grand complication), and the Audemars Piguet Royal Oak Concept Tourbillon Chronograph.
On whether he would equate higher prices with higher resale value and better investment prospects, Al Khodari says this is a tricky judgement call. “If you get a grand complication [watch] from Patek for a million dollars, that could go to auction and quadruple in price,” he says. Mishal’s A. Lange & Söhne World Time sports watch, which he bought for less than its retail price, today holds almost double its value, while his AP Royal Oak Concept Tourbillon Chronograph Openworked might appreciate by 10% in value at most, he adds.
“I still have that overwhelming instinct of what I like over the resale value. Still, I am being selective. I haven’t gone back to Harry Winston. I also got the Vacheron Constantin Overseas skeleton Rose Gold at retail price, and now it’s selling at double the value. I think that is the impact of the pandemic. It’s ridiculous if you think about it.”
Excess liquidity, partly driven by fast wealth creation from cryptocurrency trading, and coupled with the accelerated e-commerce transition of once offline players, has driven a demand surge for high-end watches among both speculators and collectors. In response, the Big Four of the watchmaking world have held on to their limited supply philosophy, further spiking prices. In July 2021, reported CNBC, a Patek Philippe Ref. 5711 Green Dial auctioned for $490,000, its initial retail price standing at $35,000.
“If this were a normal era, say ten years ago, I would say this is a bubble and it’s going to burst. [But] I don’t see any near future where watch prices will go down,” says Al Khodari. He reasons, however, that if the bitcoin rush is to slow down as Switzerland continues to legitimize cryptocurrency under the current banking system, demand for non-detectable assets by bitcoin-rich consumers will decrease and, in turn, lead to a self-correction of sorts for watch market prices. Collectors like Mishal who are in it for the long haul will want more bang for their buck to safeguard the value of their passion investments. Case in point, Mishal’s next Patek Philippe, an Aquanaut Chronograph 5968G-010 with a green dial, is being manufactured with one grand complication.
That is not to say his bet is only on the blue chips. “I recently [began experimenting with] independent watchmakers. With independents, there’s no downside. If they go bust, I have a rare piece from a company that is no longer around. And if it [succeeds], obviously they are going to change their retail prices, and have a cap on production for old models. So either way, it is a win-win scenario,” he says. Mishal’s first independent watch was a FP Journe Yellow Dial, “which is way off my personal style and usual taste”, and his second was an equally eclectic MB&F Bulldog. His bolder choices have also been partly influenced by Saudi Arabia’s evolving fashion and luxury culture. “In the past, let’s say in Saudi Arabia, you couldn’t wear a Thobe with sneakers. Now, it’s acceptable when you are travelling. It has kind of pushed my preference to get sportier, match my outfits, and to experiment with something out of my comfort zone,” he says. In his quest for unique timepieces, Mishal has also explored the likes of H. Moser & Cie, which has found its niche in the watchmaking collector community for its distinctive minimalist designs – not to mention its longstanding legacy of bringing horological innovations to other watchmakers.
“I think I am trying to build a balanced collection. I’m going to stay on independents [independent watchmakers] for a while. I am seeing people buying Nautilus and Aquanaut at double the value, and I never buy watches at double the value. I might as well double up my budget and buy independents.” And it is not the only lesson Al Khodari has learned over nearly two decades of collecting watches. The first piece of advice he would give to a beginner collector is to “always buy retail, because you can’t predict the market”. The second is to “always buy your preference, but by a known watchmaker; a piece that is timeless and that you won’t regret buying years later”. And the third is to always, without fail, “research before buying”.
“Owning a watch is a luxury. The investment part is just more of an added bonus. If you are buying a watch as an investment, try to think of it as a stock. In any investment strategy, diversification is key. I would rather buy watches than gold, but that’s my personal preference”.
