October 18, 2006 –
Steve Wynn, the Las Vegas billionaire casino mogul, recently agreed to sell a 1932 Picasso painting “La Reve” to Connecticut hedge fund billionare Steven Cohen for USD $139 million, a $91 million profit in just 9 years of holding the painting. That is until he was showing off the painting in his office to a bunch of friends, and in an animated gesture, wiped out a $91 million gain when his elbow plowed through the painting. tearing a couple of three inch long gashes.
However, the bigger point to take away from this story is that before Wynn’s blunder, he had found a buyer willing to pay $139 million for the purchase of a single painting. It is quite evident that the fine art market is still alive and healthy. In India, Tyeb Mehta paintings that sold for a mere $100,000 four years ago are now selling for more than $1.5MM. I don’t know where else you can find these types of returns. Read the full story here from a guest that was present in Wynn’s office when his elbow went crashing through the Picasso.
