Update on The "NYC Taxi Cartel"
"It's an industry that has always gone up," says Andrew Murstein, president of Medallion Financial. "It has outperformed every index you can think of — the Dow, Nasdaq, gold, you name it."
MP: That USA Today report was from July, and the "priciest piece of aluminum in NYC" - a taxi medallion to operate a single cab in NYC - has gone up another $13,000 since then, reaching a new record-high of $779,000 in November for a corporate medallion (see chart above, data here), almost double the average price of $391,000 just four years ago in November 2005. The average price for an individually-owned taxi medallion also reached a new record high in November at $579,000, a two-fold increase since the summer of 2004.
Membership in the "taxi cartel" certainly has its privileges: above-market returns (18.1% per year for corporate medallions and 15.7% for individual medallions, vs. -0.52% per year for the S&P 500 since 2004), see previous CD posts here and here.