LONDON—Since the dawn of time—once man felt secure and well fed—he has spent his time and financial resources on art. So it’s not surprising, therefore, that in the modern era, where  we are all immensely well fed and there is a growing disposable income among the middle classes in the Western world, that there should be a terrific increase in interest in art and art collecting.

Indeed, there are now a number of investment funds dedicated to art. But the funny thing about the value of art is that, unlike the price of a stock, it depends very much on opinion and fashion— and being able to predict this, I believe, comes down to knowledge and interest in the subject: in short, a passion for art.

The Hiscox corporate art collection, which has been exhibited in many countries and won plaudits, is itself an interesting illustration in the do’s and don’ts of forming an art collection. Here are my top three thoughts on the subject:

1) Buy only what you like: Art may become completely worthless for fashion and opinion reasons overnight. At least if you’ve bought what you like, it is still enhancing your environment and it is worth something to you.

2) Insure your collection properly: Our own corporate art collection has suffered from being blown up by an IRA bomb, theft, accidental damage and attack by windowlene by an over-enthusiastic cleaner. Insurers are not only good at reimbursing you, but are also good in getting your art properly restored or even back from thieves. Non-specialist insurers are not, as a rule, a good idea as they bring few of these benefits.

3) Don’t be a magpie: I am a magpie because I hardly ever sell anything. I have various artwork that I no longer really like, and there have come occasional windows of opportunity where fashion or public opinion means that I might have been able to move some of them onto a new home. I have usually missed those opportunities and I am now left having to house things I’m only half interested in—when I could have reinvested the money in something which would have given me greater pleasure.

Finally, it’s worth noting that the first piece of art that I ever bought cost me £22. Once infected with the bug, I continued to buy more and more expensive pieces, but the £22 piece of art hangs above my desk at home in London. I have never lost the enjoyment that I get from it.