How To Invest In LEGO® And Frequently Asked Questions About LEGO® Investing
What is LEGO® investing?
LEGO® investing involves buying LEGO® sets and holding them as an investment with the hope of selling them later for a profit. Similar to tangible investing strategies like gold and silver, LEGO® can grow in value by roughly 8%-11% per year after retirement. There can also be two strategies: a long hold or a short hold similar to stocks. With a long hold, you buy a set and wait a minimum of two years (average time for a set to retire) up to 10 years (when most sets plateau) and then sell. With a short hold, you look to buy sets at a steep discount and resell quickly to reinvest in more discounted sets or acquire a profit margin faster.
How do I start LEGO® investing?
To start LEGO® investing, you need to research which sets are likely to increase in value over time. Good rules of thumb include sets with exclusive minifigures, sets that are limited releases, and LEGO® sets with cult followings (I.e., Stranger Things). Also, you can do this by analyzing past trends in LEGO® set prices, following the news and rumors about upcoming LEGO® releases, and staying up to date on the latest LEGO® trends and themes.
Is LEGO® investing a good idea?
Like any type of investing, LEGO® investing has its risks and rewards. LEGO® sets can increase in value over time, but there is no guarantee that any particular set will be a good investment. Before investing in LEGO® sets, it’s important to do your research. You need to have similar strategies in place like you would with an investment portfolio.
What are some tips for LEGO® investing?
Some tips for LEGO® investing include:
- Buy sets that are likely to be in demand in the future – exclusive figures, limited releases, high demand, low supply, cult followings.
- Keep sets in their original packaging to preserve their value. NIB – new in box means the best bang for your buck!
- Buy sets that are part of popular LEGO® themes, such as Star Wars or Harry Potter. You cannot go wrong with franchise sets for long holds.
- Be patient and hold onto sets for several years to maximize their value.
- Buying retired LEGO® sets is always a stellar idea for a long hold strategy.
Where can I buy LEGO® sets for investing?
You can buy LEGO® sets for investing from a variety of sources, including the LEGO® official website, retail stores that sell LEGO® sets, and online marketplaces like eBay and Amazon. Also, you can explore my blog for more options.
When is the best time to sell LEGO® sets?
The best time to sell LEGO® sets is around holidays, and franchise releases for that set’s theme. I.e., if you bought an exclusive Star Wars set, the best time to sell would be during the holiday season coupled with a Star Wars show or movie release for maximum brand exposure.
Are there any downsides to LEGO® investing?
Some downsides to LEGO® investing include the potential for sets to decrease in value, the cost of storing and preserving sets, and the fact that LEGO® investing is not a liquid investment, meaning it can take time to find a buyer for your sets. Afterall, you are in charge of selling these LEGO® sets once they increase in value – the platform you use is up to you!
Are there any tax implications to LEGO® investing?
Yes, there can be tax implications to LEGO® investing. If you sell your LEGO® sets for a profit, you may be subject to capital gains taxes. It’s important to consult a tax professional for advice on how to handle any tax implications of your LEGO® investments – especially if you make over a certain threshold which will require research for Federal and State tax implications.
When it comes to investing, most people think of stocks, bonds, or real estate, but few consider the potential in collectibles, such as LEGO® sets. Over the past few years, investing in LEGO® has gained popularity as some rare and retired sets have significantly increased in value. In this blog post, we’ll explore how to invest in LEGO® sets and the factors to consider when building your collection.
LEGO® Is Not Without Due Diligence…Research and Knowledge Are Key!
Like any investment, it’s essential to conduct thorough research before diving into LEGO® investing. Familiarize yourself with the LEGO® market, including the different themes and product lines, such as Star Wars, Harry Potter, and modular buildings. Additionally, take note of retired sets that are no longer in production, as these typically become more valuable over time.
Identify Your Budget and Goals For Your LEGO® “Bankroll”
Determine how much you’re willing to invest in LEGO® sets and what your investment goals are. Are you looking for long-term growth, a quick return, or a combination of both? By setting a budget and investment goals, you can make informed decisions when purchasing LEGO® sets.
Choose Your Investment Strategy: Short Hold Or Long Term Hold?
There are several viable strategies for investing in LEGO® sets that most collectors use:
Buy new sets and hold – diamond hands (or, should I say brick hands?): Purchase new sets as soon as they’re released, then hold onto them until they’re retired and increase in value. This strategy requires patience, as it can take years for some sets to appreciate significantly.
Focus on limited editions and exclusives: Target limited edition and exclusive sets, such as those from San Diego Comic-Con or LEGO® Ideas. These sets tend to have a limited production run and can command high prices in the secondary market.
Buy retired sets: Purchase retired sets that have already appreciated in value. This strategy often requires a more significant initial investment but can offer more immediate returns.
Diversify Your Collection, Vary The LEGO® Sets You Buy, Reduce Your Beta Value
Just like a traditional investment portfolio, diversifying your LEGO® collection can help protect against market fluctuations. Invest in a variety of themes and product lines to create a well-rounded collection.
Monitor The Market and Your Investments – What Is Coming Out? What Is Trending? What Movie Is On The Horizon?
Stay informed about the LEGO® market by following forums, blogs, and social media groups dedicated to LEGO® investing. Keep track of the value of your sets by using websites such as BrickLink or Brickset, which provide historical pricing data.
To preserve your LEGO® sets’ value, it’s crucial to store them properly. Keep the sets in their original packaging, and avoid exposing them to sunlight, humidity, or extreme temperatures. Additionally, resist the urge to open and build the sets, as sealed sets are generally more valuable.
Know When to Sell Your Set: Don’t Wait For The Plateau
Timing is key when it comes to selling your LEGO® investments. Monitor the market and be prepared to sell when your sets have reached their peak value or when you need to rebalance your portfolio. New movies and themes emerging, relaunching of sets – everything needs to be part of your research!
Is LEGO® Investing A Lucrative Side Hustle?
Investing in LEGO® sets can be a fun and unique way to diversify your investment portfolio. As long as you read my blog, love LEGO, and ensure you do your due diligence, you will most likely make a profit! As you begin to build your collection, please stay patient. When in doubt, hold onto the set. LEGO appreciates at about 8-11% per year if kept in good condition. This means that as long as you collect and wait to sell with a simple strategy of long-term holds, you will always come out on top!