1. Only buy watches you want to wear. That way you'll never feel like you're stuck with an "investment piece."

• Buy from a reputable retailer. This will ensure you'll enjoy decent after-service care. Also, it's the only guarantee that you're not buying a fake. Some rip-offs are so convincing that only a watchmaker can spot the difference.

• Be nice. If you form a rapport with a retailer, the store will look after you over the years, even helping you to upgrade or trade-in watches while reducing the sting of depreciation.

• If you're relatively unadventurous, look to the established brands. Patek Philippe, Jaeger-LeCoultre, Audemars Piguet and Vacheron Constantin among others. They haven't survived for one or more centuries through luck. They also enjoy better resale value if you need to part with them.

• Be conservative. Nothing dates more quickly than a radically styled watch.

• Don't buy quartz watches except for knock-around purposes. Regardless of the price -- from GBP 2 to GBP 2 million -- the movements are disposable and, after a while, irreparable.

• If funds are limited, choose a watch with a strap over one with a bracelet. Bracelets add considerably to the cost. A good watch on a strap is better than a so-so watch on a bracelet at the same price.

• When buying new, keep all the paperwork and boxes.

• When buying a vintage watch, ensure that there is a guarantee of at least six months if the watch is being sold as serviced. The phrase "as seen" should act as a red flag warning not to buy unless you have a watchmaker at your elbow to advise you.

• When buying at auction, attend the viewing beforehand to see and handle the target of your bidding. Some auction houses will provide a condition report a few weeks ahead of the auction.

By Ken Kessler