A Closer Look into Rolex

Reading about the story of Rolex is something we can all learn from, so let's learn about this brand a little more closely.

Rolex does indeed sell watches, but what if I told you they’re actually a private trust? What if I told you.. they also don’t pay any taxes because of this setup? Here’s what we should know about Rolex.

So many people speculate that investing in Rolex is better than gold, real estate and trading stocks. Now regardless of which position you take on that, we should stop and realize that Rolex isn’t even in the stock market! So how do they do it? What is their secret?

Rolex is owned by a charity founded by an orphan. This means they do not pay taxes at the corporate level. When Rolex had it’s initial success from founder Hans Wildorf, Hans had an important revelation.

He decided to open an organization when his wife past away. This was the beginning of the Hans Wildorf organization, which owns 100% of Rolex to this day.

Hans past away in 1960 and Rolex has been thriving ever since, but let me ask you something: Do you think with all this information we still know enough about Rolex? The answer is no, we do not actually but one fact remains true and that is Rolex is buying a TON of real estate.

The business model of Rolex is simple: Sell timepieces for profit, then the Hans Wildorf organization invests the profit directly into luxury real estate.

They’ve spent 700 million in real estate purchases within their native hometown of Geneva alone!

So Rolex is owned by a charity right? But we have never heard about any of the donations. They may invest in R&D but being owned by a charity means they do not have to disclose anything. This allows them to print money and rid themselves of capitalism by no shareholders, less tax, and basically doing as they please.

Credit to Prab Mangat on this information. I hope this story finds you well on your investing journey.