Managing Your Money : RETIREMENT : Where Was the Really SMART MONEY in 1962?

L.A. Times Archives

Nov. 10, 1992 12 AM PT

It takes a keen eye to peer far into the future, but if the past 30 years are any guide, the best investment opportunities may be the most unconventional. Oh, sure, an investment in Blue Chip stocks in 1962 was a solid way to beat inflation--but just barely. Forget about precious metals or a seat on the New York Stock Exchange; consider the possibilities of small-company stocks, baseball cards, first editions and fine art. And don’t forget the wine. You may need it someday.

Consumer Price Index 1962: 29.60 1992: 139.78

A 2,000 square-foot single-family home on Verde Ridge Street in Rancho Palos Verdes: * 1962 -- $40,000 * 1992 -- $500,000 Percentage Gain: 800%

S & P 500 * 1962 -- 58.78 * 1992 -- 485.96 Percentage Gain: 726%

Dow Jones 30 Industrials * 1962 -- 616.13 * 1992 -- 3,207.64 Percentage Gain: 420%

Platinum * 1962 -- $82.00 oz. * 1992 -- $359.50 oz. Percentage Gain: 338%

Silver * 1962 -- $1.20 oz. * 1992 -- $3.77 oz. Percentage Gain: 214%

Seat on the New York Stock Exchange * 1962 -- $200,000 * 1992 -- $600,000 Percentage Gain: 300%

Baseball Cards (5 cards for 5 cents in 1962) 1992 price for 1962 Cards: * Mickey Mantle in excellent condition -- %500 * Lou Brock -- $215 * Carl Yastrzemski -- $130 Percentage Gain: Out of the Ballpark

1962 jaguar XKE * 1962, new, $4,500 * 1992 value, $35,000 Percentage Gain: 678%

Index of small company stocks * 1962 -- 33.54 * 1992 -- 1,960.23 Percentage Gain: 5,744%

First edition of Ken Kesey’s “One Flew Over the Cuckoo’s Nest” * 1962 -- $5 * 1992 -- $500 - $600 Percentage Gain: 9,900%

Fernand Leger’s painting, “Les Maison” * 1962 -- $36,400 * Expected auction price in 1992 -- $2 million Percentage Gain: 5,394%

Martin Luther King autograph * 1962 -- free * 1992 -- $400 to $600 Percentage Gain: Inestimable

BV-Latour Private Reserve Cabernet, 1958 * 1962 -- $4 to $5 * 1992 -- $400 to $500 Percentage Gain: 9,900%

NOTE: Figures for financial indexes are from Nov. 9, 1962, and Oct. 24, 1992.

SOURCES: Sotheby’s, Beaulieu Vineyards, New York Stock Exchange, Beckett Price Guide, Hemmings Motor News, Ibbotson Associates and Re/Max Realty

--- UNPUBLISHED NOTE ---

Correction

Los Angeles Times Tuesday December 8, 1992

The Percentage Gain for a 2,000 square-foot single-family home on Verde Ridge Street in Rancho Palos Verdes between 1962 and 1992 should have been: 1150%

The Percentage Gain for a seat on the New York Stock Exchange between 1962 and 1992 should have been: 200%.

The range of the Percentage Gain for BV-Latour Private Reserve Cabernet, 1958 between 1962 and 1992 is: 7,900% to 12,400%.

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