Nick Martell

If you know, you know.

But Sotheby's real business, as Jack and I have analyzed it, is TAS, Trust As A Service.

Because when you're spending big money on a Picasso, you want to make sure that thing is legit.

Yeah, you want to make sure that Picasso is not a fuckasso.

Is this Botticelli or is this Bottinelli?

Well, Sotheby's takes a huge cut of that deal up to a 40% transaction fee to make sure it is really a Botticelli.

So a $1 million painting that's sold at a Sotheby's auction, the buyer actually pays $1.2 million after fees, but the seller only gets $800,000.

The $400,000 in between is Sotheby's 40% fee.

And the reason Sotheby's can take that big old profit puppy is because they found and controlled a very illiquid market.

Think about it.

Without an auction house, Monet sellers...

might only find money buyers.

But besties, here's what Jack and I find fascinating.

40% fee on very high-ticket items just to be a middleman?

Put that business model on auction.

That's incredible.

And Sotheby's is sitting so sweet, yetis.

They began licensing out their brand back in 2004.

Sotheby's International Real Estate?

There might be one in your town?