Why Michael Jackson Should Be in Your Portfolio

Stocks, bonds and real estate are not the only items of value we hold. For example, back in 2001 I wrote about my investment in first edition copies of Ayn Rand’s "Atlas Shrugged." 

Only 100,000 were printed, making for a small float relative to the book’s influence. Unclipped copies with original dust jackets sell for $4,000 or more. Compared to the S&P 500 over the same period, the asset has been a home run.

Those prices might end up looking like a bargain as public interest in the book soars. Sales hit an all-time high in 2008 and are up 300% over prior years in the first few weeks of 2009. As evidenced by Google Trends, searches of "Atlas Shrugged" are soaring. If you had an extra $5,000 right now, I’d say a copy of "Atlas" is a much better store of value than shares of Bank of America (BAC) or Citigroup (C).

Of course, rare books and other memorabilia are really the ultimate in illiquid assets. You can’t expect to flip baseball cards or collectible cars as you would shares of United States Oil (USO) or Financial Select SPDR (XLF).

For the few investors with any disposable income or risk capital left, there might be some potential values at the upcoming auction of Michael Jackson’s personal property, to be held at the Beverly Hills Hilton April 22-25 despite an attempt by Jackson to back out.

The fundamental case for adding Jacko to your portfolio is obvious. Michael Jackson is arguably the most influential visual artist of the last 100 years and certainly the defining one of the video age. For Generation X and Generation Y, Michael Jackson is an unparalleled icon, bigger than Frank Sinatra. Like Andy Warhol or Roy Lichtenstein, Jackson’s visual style makes many artifacts unique.

Of the 2,000 items to be auctioned, much of the merchandise is recognizable Jackson costumes, including one of his white “sparkle” gloves (estimated at $10,000) and the costume worn in the 1991 video for “Black or White” (est. $500). The MTV Video Award “Moonman” statue awarded to Jackson as Artist of the Decade in 1990 has a pre-auction estimate of $8,000. Many of the items are instantly recognizable, solidifying how much Jackson’s video imagery is a defining part of 20th century culture.

Jackson Assets at Auction:

Lot 1374
Michael Jackson White Crystal Glove from early 1980s
Covered in clear Swarovski crystals
Estimate: $10,000-$15,000

Lot 1222
“Artist of the Decade” Award, 1990 MTV Video Music Awards
Estimate: $8,000-$12,000

Lot 1363
Long-sleeve, black silk shirt worn in 1991 video for “Black and White”
Estimate: $500-$700
Source: Julien’s Auctions