A 5.5 million percent return on investment—that’s the remarkable achievement of legendary investor Warren Buffett, who recently announced his retirement, after more than 60 years in the market. Over the same period, the S&P 500 delivered a total return of approximately 39,000 percent.
Warren Buffett is renowned as a pioneer of value investing. If he had applied his investment philosophy to collecting watches, which watchmaker might he have preferred? I believe it would be Breguet—a brand synonymous with timeless value, craftsmanship, and enduring heritage in the luxury watch market.

Now that the pandemic-driven hype has subsided, collectors who approach the watch market with a value investing mindset, much like Warren Buffett, are once again turning their attention to Breguet. Despite its relatively low brand recognition, Breguet offers exceptional intrinsic value, distinguished craftsmanship, and enduring heritage in the luxury watch industry.

What is Warren Buffett’s approach to value investing?

Since his early years, Warren Buffett has focused on the fundamentals and long-term value of companies. He believes that businesses generating strong cash flow and consistent profit growth possess a solid foundation that is difficult to disrupt, forming the core of their intrinsic value.

On the other hand, ‘price’ can fluctuate significantly due to factors such as emerging technologies and trends, geopolitical risks, and shifts in investment sentiment driven by monetary policy. For decades, Buffett has followed a strategy of deploying capital when he believes a company’s price has dropped below its intrinsic value during these market fluctuations and selling when the price exceeds that value.

Collecting: Investing in the Intrinsic Value of Personal Satisfaction

If we apply Buffett’s investment philosophy to watch collecting, which factors define a timepiece’s intrinsic value?

While viewing watches purely as financial investments carries significant risk, I believe that, much like seeking ‘investment returns’ in the stock market, watch collectors pursue rewards that go beyond monetary gains—specifically, the emotional satisfaction and personal fulfillment that come from owning exceptional timepieces.

'만족감' 중심의 수집 철학을 공유하는 존 메이어와 에드 시어런</br>© Hodinkee

John Mayer and Ed Sheeran: Collecting Watches for the Intrinsic Value of Satisfaction
© Watchkee

So, what criteria can we use to assess the satisfaction—and intrinsic value—that comes from collecting watches?

I believe the intrinsic value of a timepiece stems from factors such as strong brand reputation, exceptional movement performance, meticulous finishing, expertise in crafting complications, timeless design, and lasting durability. Breguet stands out as a watch brand that embodies all of these qualities.

Breguet: The Father of Modern Watchmaking

Before exploring why Buffett might choose Breguet, let’s first appreciate the brand’s core philosophy and the values that define its legacy in the world of luxury watchmaking.

Abraham-Louis Breguet, the visionary founder of the Breguet brand 'The Father of Watchmaking'Breguet is often referred to as the ‘Father of Watchmaking,’ and for good reason. The brand pioneered innovations such as automatic movements, the tourbillon, and guilloché dials—hallmarks of fine watchmaking that we now consider standard.

Breguet continues to craft timepieces that honor its prestigious legacy, and has recently garnered growing interest from collectors and prominent auction houses worldwide.

Breguet, renowned for its extensive archive of historic pocket watches, has spent decades transforming these masterpieces into modern wristwatches. This year, the brand’s subscription series launched to celebrate its 250th anniversary has become a significant talking point in the watchmaking industry.

The distinctive single-hand design featured in the original Breguet subscription watches

브레게가 현재까지도 사용중인 무브먼트 설계
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© Monochrome

A movement design that Breguet continues to use in its modern timepieces
© Monochrome

Breguet is not a brand that hastily follows trends or rapidly adapts to fleeting market shifts. Instead, it proudly embraces the signature elements cultivated over its long and storied history. Beyond its renowned guilloché dials, Breguet consistently incorporates its iconic blue ‘Breguet hands’ and distinctive ‘Breguet numerals’—design features that have inspired countless watchmakers across the industry.

Breguet numerals, a distinctive design element also embraced by Patek Philippe
© CCNY

I believe that Breguet’s uncompromising attention to finishing—even in less visible areas like the movement and case sides, particularly evident through the case back—demonstrates the brand’s exceptional craftsmanship that continues to earn the admiration of collectors worldwide.

However, it’s important to highlight that Breguet is not merely a watchmaker devoted to visible beauty; the brand is equally committed to technical excellence and intricate craftsmanship beneath the surface.
Even when measured by the Horological Density Factor—an index that objectively assesses movement performance by evaluating balance wheel frequency, weight, and power reserve, as explored in research by SJX Watches—Breguet consistently achieves outstanding figures that surpass those of many other watchmakers.

초당 20회의 10 Hz(72, 000 진동), 클래식 크로노메트리 7727<br/>© Breguet

10 Hz (72, 000 vibrations) at 20 beats per second, Classic Chronometry 7727
© Breguet

Moreover, Breguet has firmly established its reputation as a high-end watchmaker by pioneering the development of the tourbillon—a complication now considered essential in haute horology. The brand has also nurtured renowned watchmakers like Daniel Roth and served as an inspiration for esteemed independent brands such as F.P. Journe.

Breguet: A Master Watchmaker with a Marketing Challenge?

In an era where brand image often influences purchasing decisions more than product quality itself, the watch market is widely believed to be driven by craftsmanship and precision. Yet, is the timepiece alone truly the ultimate factor shaping consumers’ emotions? When it comes to brand awareness and marketing impact, I believe Breguet either leaves a more profound impression than names like Patek Philippe, Audemars Piguet, and Rolex—or, conversely, lags significantly behind in delivering the same captivating ‘hook’ that draws consumers in.

Breguet Advertising Campaign 2020
© Breguet

We live in an era where brand image often compels consumers to open their wallets. While the importance of quality and performance in the watch market is undeniable, is the intrinsic value of a timepiece truly a stronger ‘hook’ than the emotional connection it sparks in consumers? Objectively speaking, in terms of brand awareness and marketing prowess, Breguet appears to fall somewhat short compared to Rolex, a master of marketing; Patek Philippe, renowned for its successful prestige positioning; and Audemars Piguet, which has cultivated a distinctly modern, ‘hip’ image. As a result, Breguet may lack the same powerful ability to leave a lasting impression or ignite strong purchase desire among consumers.

Compared to Patek Philippe, renowned for timepieces ‘meant to be kept for the next generation,’ Audemars Piguet, celebrated as an icon of hip-hop luxury and bold expression, and Rolex, famously worn by presidents, golfers, and tennis stars, Breguet remains a watchmaker that, outside the collector community, is often met with the question: ‘Is there really a brand like that?

Rolex: The Prince of Luxury Watches Backed by Countless Testimonials
© Rolex

As a result, Breguet’s prices remain relatively accessible compared to other luxury watch brands.

Perhaps for this reason, Breguet timepieces often trade at significant discounts from their retail prices on the resale market. As the table illustrates, their prices tend to decline despite the brand’s esteemed reputation, highlighting a disconnect between market value and Breguet’s high standing in the world of horology.

According to the 2024 watch market analysis by Morgan Stanley and Luxconsult, Breguet’s average retail price stands at approximately $36,000, whereas its average price on the pre-owned market drops to just $17,900.

“By the same analysis, Patek Philippe commands an average resale value of approximately $163,000, significantly exceeding its average retail price of $49,000. Meanwhile, Rolex maintains a resale premium of around $20,000 over its average retail price of $17,200, reflecting an impressive 16% premium in the secondary market.

시장 평균보다 낮은 브레게의 리셀 시장 시세<br/>© WatchCharts

Breguet Resale Prices Lag Behind Luxury Watch Market Averages
© WatchCharts

Collector’s Watch vs. Mainstream Luxury Appeal

We believe these differences stem from variations in the composition and size of each brand’s buyer base.

Rolex, renowned for its ‘unconditional rise’ in value, enjoys a loyal following that spans from novice enthusiasts to seasoned collectors. Meanwhile, Patek Philippe—often hailed as the ‘King of the End’ or ‘Emperor’—is widely regarded as the ultimate symbol of success, even among those with limited knowledge of watches.

In contrast, Breguet remains a brand known primarily to those ‘in the know,’ appealing to a relatively niche group of collectors. While not every dedicated collector may personally favor Breguet, many acknowledge its significance and regard it as an important name in the world of fine watchmaking.

Range of Capabilities -
Circle of Competence in Horology

“I place no value on things irrelevant to my needs.”

In that sense, Breguet collectors are individuals with well-defined standards regarding their preferences and the qualities they seek in a watch. At the same time, they are discerning buyers who place little value on aspects they neither understand nor consider necessary.

I believe this mindset closely resembles the ‘Circle of Competence’ concept often emphasized by Warren Buffett—where individuals focus on what they truly understand and avoid placing value on things outside their expertise or unnecessary to their collection.

Now that the market hype has subsided
The Growth of the Collector Market

Interestingly, the watch market has evolved into a collector-driven industry.

Unlike the pandemic period—when abundant liquidity drew many new entrants to watches, causing trading volumes to surge and prices to fluctuate—the current watch market is increasingly driven by discerning collectors focused on timepieces with genuine intrinsic value.

다니엘 로스 제작 80년대 브레게 투르비용 Ref. 3350<br/>© Monochrome

Sophisticated double tourbillon timepieces from independent watchmakers, limited-edition Cartier models produced in very small quantities, and Rolex watches with well-documented provenance are all breaking records in the recent auction market.

The Sympathique No. 1 wristwatch—personally designed by F.P. Journe and paired with a table clock produced by Breguet in the 1990s—was sold for CHF 5.5 million (approximately 9.12 billion won) at auction.

Outstanding Intrinsic Value Meets Low Brand Awareness
A Combination That Aligns with Warren Buffett’s Taste

If Warren Buffett—who famously said, ‘Price is what you pay, value is what you get’—were a watch collector, wouldn’t Breguet be his preferred watchmaker?

Breguet, crafted by the ‘father of watchmaking,’ deserves a fresh look. With market interest rising rapidly, early momentum could soon make it challenging to ‘buy below fair value.’ On a related note, Warren Buffett is famously known for wearing the Day-Date—a model I personally regard as Rolex’s most undervalued timepiece.

David Hwang

Watch Analyst

Watch Terminal