Forbes Magazine (October 13, 2008)

The Color of Money by Claire Obusan

Rising art prices have provided a salve for several bruised fortunes.

Volatile markets have bruised several fortunes of The Forbes 400. But swelling contemporary art prices have provided an unexpected hedge.
Eli broad should be a lot poorer this year. worth $7 billion last fall, the insurance and housing maven saw his 46.6 million shares of aig–received a decade ago when he sold SunAmerica to the insurance giant for $18 billion–drop 70% between last summer and August 29, the day we priced The Forbes 400 (they’ve fallen much further since). That decline erased $2 billion from his personal balance sheet.

But Broad’s net worth fell only $300 million. One reason: the soaring value of his 2,000-piece art collection. Comprising mostly contemporary pieces by artists like Jeff Koons, his collection was recently appraised at $1.9 billion, up 72% in a year………….

Major collections and apprecation:
Thomas H. Lee
“5 Deaths Twice 1 (Red Car Crash)” (1963)
Andy Warhol
Gain: 285%in 4 years.
The investor acquired the piece for $6.5 million at a 2004 auction. Amy Cappellazzo, head of Christie’s contemporary art division, says it’s now worth as much as $25 million.

Steven Cohen
“The Physical Impossibility of Death In the Mind of Someone Living” (1991)
Damien Hirst
Gain: 144% in 4 years.
The hedge fund tycoon bought the iconic shark installation for $8.2 million in 2004. Cappellazzo says it’s worth perhaps $20 million today.

Norman Braman
“Diver” (1962)
Jasper Johns
Gain: 2,281% in 20 years.
The Forbes 400 newcomer paid $4.2 million in 1988 for this Johns piece. Cappellazzo says it would fetch perhaps $100 million today.

Lorenzo Fertitta
“Jersey Joe Walcott” (1982)
Jean-Michel Basquiat
Gain: 245% in 3 years.
The blood sport billionaire bought this piece in 2005 for $1.45 million. It’s worth $5 million today.

Frank Fertitta III
“Suite of 12 24-Inch Flowers” (1964)
Andy Warhol
Gain: 213% in 2 years.
The casino mogul purchased all 12 of Warhol’s flowers in 2006 for $9.6 million. Today they are worth $30 million.

Eli Broad
“Rabbit” (1986)
Jeff Koons
Gain: 567%in 3 years.
Broad’s 41-inch, stainless steel bunny was worth $12 million in 2005. A similar piece sold privately for $80 million earlier this year.

More at: http://www.forbes.com/global/2008/1013/114.html