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Perfect Pedigree
Michael Verdon
02/02/2004
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What is in a name? For yachts, virtually everything. That is because a yacht’s pedigree, or reputation within the marketplace, is often the most significant factor in determining its value, and therefore, its success as an investment. With some exceptions, the golden rule of yacht ownership is this: The higher the pedigree, the higher the return on investment.
 "You can typically use the words ‘investment’ and ‘pedigree’ in the same sentence," says David Ross, president of Burger Boat in Manitowoc, Wisc. Ross maintains that every Burger built in the last decade has fetched more on the brokerage market than it cost its owners to build. Similar claims are made by the dozen or so other pedigree builders, and backed up by industry experts.
"I don’t know of a yacht with a good pedigree launched in the last 15 years that hasn’t proven to be a substantial positive investment for its owner," agrees James Gilbert, editor-in-chief of ShowBoats International magazine.
"It’s a question of supply and demand," says Lisa Verbit, senior vice president of the Private Bank, a division of the Bank of America. "Manufacturers of production yachts tend to spit them out so fast, they’ve become a commodity. Their resale values are subject to greater volatility. Pedigreed yachts are in a smaller universe, and tend to hold their value."
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