Which investment can bring you 10 times return during last 10 years? Stock market or gold?
Gold is regard the popular investing vehicle. Investors who invested in gold received a 9.6 per cent annual gain over the past decade. The annual return for shares is 8.65 during 2007-2016.
By contrast, Lego sets kept in pristine condition have increased in value 12 per cent each year since the turn of the Millennium. Surprisingly, Lego has outperformed gold and shared from 2000. Most people will not believe because they still regard Lego as a popular plastic children’s toys. You will change your mind after you take a look at the following image.
You can check Lego’s price from www.amazon.com. If you are interested, you can check detailed information of transaction and daily price from www.brickpicker.com. The founder of brickpicker.com already invested 6 figures Pounds to collect Lego. Tens of thousands of investors across the world were pushing up prices of rarer sets.
Some Lego investing tips from Ed Maciorowski, the founder of BrickPicker.com.
- The rarer, the better. It applies to any investment. Limited edition and seasonal sets appreciate well.
- Anything related to movies, stories or franchises, such as, Star Wars, Disney. They are linked with some cultures or histories. People can even remember them generation after generation.
- Invest in Lego sets that were released after 1999, we will talk this issue later.
- Keep the Lego boxes, pieces and instructions in pristine condition. The better the condition, the more the set will sell for in future.
- Stack Lego boxes vertically like books. Horizontal stacking causes boxes to crush and seals to break. Keep them in a dry and dark storage space. No sun … no moisture.
- To buy retail and on discount. The second market is where you make your money.
- Lego mini figures are very valuable.
Why does Lego become a popular investment instrument?
In 2000, LEGO was named “Toy of the Century” by Fortune magazine as well as by the British Toy Retailers Association, beating out such other classics as the teddy bear and Mattel’s Barbie. These simple, colorful and durable blocks have been around since 1958 in their current form and are more popular than ever. This is like an endorsement that Lego is the best toy in the world.
The second reason is that kids who played Lego grew up to adults. They have money and time, moreover, Lego connects their wonderful childhood. Some of them play to buy an old Lego because they did not have money to buy when they were young.
Like any investment, we need analyze its risks in advance.
- The returns from Lego look pretty lucrative, but investors need to beware that the value of collectables can be vulnerable to fads. It happened many times in the history.
- No one knows how Lego company is thinking. What if Lego company reopens production line for some valuable sets?
- Safe storage is one important factor. Unlike coins or stamps that take up minimal space, Lego boxes take up entire rooms.