Rare Book Monthly

Articles - June - 2005 Issue

Following Up a 25-Year-Old Book Investment Scheme

Edwards11

These eleven books averaged over a 1,000% return in 14-17 years.


The books would be held in the investor's portfolio. "Should a collector want an item currently in an investor's portfolio the investor would be informed of the fact and the proposed price." It is not stated how collectors would be made aware of what books were held in the Edwards portfolio, though presumably this was addressed. Edwards' commission is not stated, but we can also presume there was one of these. These were questions the prudent investor would undoubtedly ask before turning over a sum of money.

Ultimately, the "scheme" failed. In an email response, Greg Coombes, the current Chief Executive of Francis Edwards, said the portfolio scheme led to a great furor in the book world, including an article in a trade publication. There are undoubtedly some readers out there, longer involved in the book trade than I, who remember this incident. Coombes explained that the firm believed some of the comments were actionable, and took the matter to court. Between what was likely disappointing results in gaining investors and costs of litigation, which proved unsuccessful, the company failed. Present ownership purchased the venerable firm out of receivership in the fall of 1982, and restored it to its traditional bookselling role.

Our point is not to stir up old controversies. Whatever the issues were then, we do not care. However, it can be interesting to look back at this proposal with the benefit of hindsight. Why might this scheme have looked appealing at the time, and were the expectations on which it was based realized in the years ahead, or did the scheme fall short? Those are the interesting questions, as undoubtedly it is just a matter of time before conditions bring about a new plan based on similar assumptions.

It is not surprising that a plan like this would be offered in 1980. Investors were searching for ways to achieve returns which would outpace rising inflation. The stock market had been dead for years. The Dow Jones Industrial Average closed 1980 virtually the same as it closed 1965. So what better time to show investors what books had done over the same period? Edwards produced a chart of 11 items, purchased in the early 1960s and sold in the late 1970s. There was a 1791 Boswell's Life of Johnson, a 1690 first edition of Locke's Essay Concerning Humane Understanding, D.H. Lawrence's 1915 The Rainbow, and eight others. Returns ranged from a low of 271% to a high of 1,946%. That's a low of 271%. Compare that to a flat stock market. The average return was over 1,000%. Not bad for around 15 years.

Rare Book Monthly

  • <b>Bonhams, Jun 13 results:</b> Darwin, Charles. <i>On the Origin of Species.</i> Presentation Copy. Sold for $500,075.
    <b>Bonhams, Jun 13 results:</b> Darwin, Charles. Autograph Letter Signed, 3 pp, negotiating the 2nd American edition with Appleton. Sold for $21,325.
    <b>Bonhams, Jun 13 results:</b> Hemingway, Ernest. Autograph Letter Signed, 8 pp, Paris, 1924, to his father discussing Bullfighting, Stories, and his new baby. Sold for $25,075.
    <b>Bonhams, Jun 13 results:</b> Shakespeare, William. <i>Corialanus.</i> London, 1623. 1st printing [Extracted from the First Folio]. Sold for $50,075.
    <b>Bonhams, Jun 13 results:</b> Swift, Jonathan. <i>Gulliver's Travels.</i> London, 1726. 1st edition, Teerink's A edition, fine, large copy. Sold for $21,325.
    <b>Bonhams, Jun 13 results:</b> Fitzroy, Robert. Autograph Letter Signed to agent Thomas Stilwell, informing him of the progress of H.M.S. Beagle. Sold for $17,575.
    <center><b>Bonhams<br> Property from the Collection of Nicole and William R. Keck II</b>
    <b>Bonhams, Jun 13 results:</b> Shakespeare, William. <i>Sonnets.</i> 1901. 2 volumes. Printed on vellum and illuminated by Ross Turner, bound by Trautz-Bauzonnet. Sold for $13,825.
    <b>Bonhams, Jun 13 results:</b> Beardsley, Aubrey. <i>The Birth, Life, and Acts of King Arthur.</i> 1893-94. 2 volumes. Contemporary painted vellum gilt by Chivers. Sold for $5,325.
    <b>Bonhams, Jun 13 results:</b> Assisi, St. Francis. <i>The Canticle of Brother Sun.</i> Illuminated on vellum, for the Grolier Society. Sold for $7,575.
    <b>Bonhams, Jun 13 results:</b> Rackham, Arthur. <i>Peter Pan in Kensington Gardens.</i> 1/500 copies signed by Rackham. Sold for $4,825.
    <b>Bonhams, Jun 13 results:</b> Proust, Marcel. <i>Du coté de chez Swann.</i> 1st edition, 1st issue. Inscribed by Proust. Sold for $8,825.
  • <b>Swann Auction Galleries:</b> Ian Fleming, <i>Goldfinger,</i> first edition, inscribed to Sir Henry Cotton, MBE, London, 1959. Sold for $25,000.
    <b>Swann Auction Galleries:</b> Joseph Brant, Mohawk Chief, ALS, writing after pledging support to King George III against American rebels, 1776. Sold for a record $35,000.
    <b>Swann Auction Galleries:</b> Sonia Delaunay, <i>Ses Peintures</i> . . ., 20 pochoir plates, Paris, 1925. Sold for a record $13,750.
    <b>Swann Auction Galleries:</b> Diana, Princess of Wales, 6 autograph letters signed to British <i>Vogue</i> editor, 1989-92. Sold for $10,400.
    <b>Swann Auction Galleries:</b> Alexander Hamilton, ALS, as Secretary of the Treasury covering costs of the new U.S. Mint, 1793. Sold for $12,500.
    <b>Swann Auction Galleries:</b> Benjamin Graham & David L. Dodd, <i>Security Analysis,</i> first edition, inscribed by Graham to a Wall Street trader, NY, 1934. Sold for $20,000.
    <b>Swann Auction Galleries:</b> George Barbier & François-Louis Schmied, <i>Personnages de Comédie,</i> Paris, 1922. Sold for $9,375.
    <b>Swann Auction Galleries:</b> Alphonse Mucha, <i>Ilsée, Princesse de Tripoli,</i> Paris, 1897. Sold for a record $13,000.
    <b>Swann Auction Galleries:</b> Ralph Waldo Emerson, <i>The Dial,</i> first edition of the reconstituted issue, Emerson’s copy with inscriptions, Cincinnati, 1860. Sold for a record $3,250.
  • <b>Mayfair Book Auctions, July 17:</b><br>Lot 14. [CRIMEAN WAR] HAMLEY. <i>The Story of the Campaign of Sebastopol.</i> 1855. £150 to £200
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 17. JONGH & D'ALMEIDA. <i>L’armee Russe...</i> c.1898. Colour plates and many illustrations. £500 to £600
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 18. [RUSSIA] LE PRINCE. <i>Oeuvres. 1782.</i> Rare folio format with 80 etchings and 74 aquatints. £4000 to £6000
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 21. [RUSSIA] MORNAY. Set of 8 hand-coloured aquatints of carriages, sleighs and occupants. c.1825. £1200 to £1800
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 33. BOWDICH. <i>Excursions in Madeira and Porto Santo.</i> 1825. A fine copy. £800 to £1200
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 37. QUIN. <i>An Historical Atlas.</i> 1836. 2nd edn, 21 hand-coloured maps revealing civilisation. £800 to £1200
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 39. LE BRUN. <i>Voyages [...] par la Moscovie, en Perse...</i> 1718. 300+ engravings, panorama. £4500 to £5500
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 48. BRIERLY. <i>The English and French fleets in the Baltic.</i> 1855. Colour lithographs. £7000 to £9000
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 60. DELLA VALLE. <i>Reise Beschreibung... in Turckey, Egypten, Palestina[...].</i> 1674. £1500 to £2000
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 77. MURRAY, Mrs. Watercolour Album of Heaths. c.1860. 55 original watercolours. £750 to £1000
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 91. ADDISON. <i>Works...</i> 1721. 4 vols, large paper copy, English red morocco. £2500 to £3500
    <b>Mayfair Book Auctions, July 17:</b><br>Lot 96. HOLBEIN. Imitations of original drawings. 1792-1800. Exceptional copy. £4000 to £6000

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