Is LEGO "investment" an "asset class"?

[Ed Mack]

Asset Class

What It Is:

An asset class is a group of investments that have similar characteristics, behave similarly and are subject to similar market forces, laws and regulations.

Typical asset classes include stocks, bonds, real estate, cash and commodities. These groups can also be broken down further. For example, the asset class "stocks" can be broken down either by industry -- e.g., manufacturing, automotive or energy -- or by a more general characteristic of the investment -- e.g., value, growth or blue chip.

After reading the above definition for an "asset class," should LEGO "investment" in sets and bricks be considered one? Is LEGO investment that serious or is it still only little plastic bricks we are talking about?

[ViciousBrick]

Asset Class

What It Is:

An asset class is a group of investments that have similar characteristics, behave similarly and are subject to similar market forces, laws and regulations.

Typical asset classes include stocks, bonds, real estate, cash and commodities. These groups can also be broken down further. For example, the asset class "stocks" can be broken down either by industry -- e.***., manufacturing, automotive or energy -- or by a more general characteristic of the investment -- e.***., value, growth or blue chip.

After reading the above definition for an "asset class," should LEGO "investment" in sets and bricks be considered one? Is LEGO investment that serious or is it still only little plastic bricks we are talking about?

I think it is. Lego investing is a well kept secret that is gaining popularity with the advent of various auction sites. I definitely looks at Lego bricks as a commodity. You could call it a 'niche' in your investment portfolio.

[odenisblazin]

I think it is. Lego investing is a well kept secret that is gaining popularity with the advent of various auction sites. I definitely looks at Lego bricks as a commodity. You could call it a 'niche' in your investment portfolio.I think Lego investing is a dirty little secret. People don't want to talk too much about it. It's like taboo. :-0

[L3GO LOV3R]

I think it is. Lego investing is a well kept secret that is gaining popularity with the advent of various auction sites. I definitely looks at Lego bricks as a commodity. You could call it a 'niche' in your investment portfolio.I think Lego investing is a dirty little secret. People don't want to talk too much about it. It's like taboo. :-0I agree. Some people do not like talking about investing in Legos. It's like they want to keep it a secret and poopoo anyone who mentions it. They insult you and say that you are not a true fan or collector, meanwhile they sell thousands of dollars of Lego sets on Bricklink or eBay.

[BuildIT]

LEGO investing and collecting is another area of the free-market economy that intelligent people such as us Brickpickers can dive into, without drawing too much attention to ourselves. We are all only too aware of HORNBY train collectors (or even collectors in the field of stamps, medals, jewellery, books, china, glassware, etc, etc, et), but I doubt any of us really thought that they were 'investors'. At least I didn't until my "Dark Ages" passed and the AFOL decided to shine through. Then it hits home like a Mike Tyson jab..... ....they aren't collectors, these people have been making a living on investing. As for LEGO being an "asset class", then it can be as long as we group all toys (or other similar description) into one group. But that is something I am not happy with....this is afterall LEGO we are talking, and not Hornby trains. How dare LEGO be grouped into such a similar category! LOL. I think I need to mull this one over some more Ed/Jeff. I just don't know if I can see LEGO as a market-related commodity, or a sideline of the economic society we all live in - but one we long to keep quiet, as we all see the magic contained within it.

[Ed Mack]

LEGO investing and collecting is another area of the free-market economy that intelligent people such as us Brickpickers can dive into, without drawing too much attention to ourselves. We are all only too aware of HORNBY train collectors (or even collectors in the field of stamps, medals, jewellery, books, china, glassware, etc, etc, et), but I doubt any of us really thought that they were 'investors'. At least I didn't until my "Dark Ages" passed and the AFOL decided to shine through. Then it hits home like a Mike Tyson jab.....

....they aren't collectors, these people have been making a living on investing.

As for LEGO being an "asset class", then it can be as long as we group all toys (or other similar description) into one group. But that is something I am not happy with....this is afterall LEGO we are talking, and not Hornby trains. How dare LEGO be grouped into such a similar category! LOL.

I think I need to mull this one over some more Ed/Jeff. I just don't know if I can see LEGO as a market-related commodity, or a sideline of the economic society we all live in - but one we long to keep quiet, as we all see the magic contained within it.

There is a battle waging in the LEGO world. On one side, you have the people who think of LEGO bricks as their escape from reality, a magical world filled with little plastic people and pieces. On the other side, you have the people who want to buy and sell LEGO bricks in order to make enough money to escape from reality. These people never open a LEGO box, they just sell them like a person would sell food or gas. Then there are those like me, in the middle, who love to build, but respect the fact they are a commodity and a worthwhile investment.

I was at the store yesterday and found 13 STAR WARS Battle Packs for sale for $7 a piece and the guy behind me said, "Oh, reliving your childhood?" I laughed and said, "No, these sets are selling for $14 on EBAY and I just double my money!" He looked at me like I was crazy. The general population has no idea about the value of LEGO bricks. The fact is, there is money to be made from LEGO bricks and some people like to keep it their dirty little secret. I often wonder if promoting 'investment' is wise when I have over $100,000 worth of LEGO bricks, sets and displays in my house and business and I might be enlarging some "LEGO Bubble."

I'm not smart enough to figure that out, but I do know that knowledge is power and I like to keep myself and others informed about the trends of LEGO investing and prices. Where this all leads, is anybody's guess...

[BuildIT]

There is a battle waging in the LEGO world. On one side, you have the people who think of LEGO bricks as their escape from reality, a magical world filled with little plastic people and pieces. On the other side, you have the people who want to buy and sell LEGO bricks in order to make enough money to escape from reality. These people never open a LEGO box, they just sell them like a person would sell food or gas. Then there are those like me, in the middle, who love to build, but respect the fact they are a commodity and a worthwhile investment.

I was at the store yesterday and found 13 STAR WARS Battle Packs for sale for $7 a piece and the guy behind me said, "Oh, reliving your childhood?" I laughed and said, "No, these sets are selling for $14 on EBAY and I just double my money!" He looked at me like I was crazy. The general population has no idea about the value of LEGO bricks. The fact is, there is money to be made from LEGO bricks and some people like to keep it their dirty little secret. I often wonder if promoting 'investment' is wise when I have over $100,000 worth of LEGO bricks, sets and displays in my house and business and I might be enlarging some "LEGO Bubble."

I'm not smart enough to figure that out, but I do know that knowledge is power and I like to keep myself and others informed about the trends of LEGO investing and prices. Where this all leads, is anybody's guess...

I sit in the middle too Ed...the desire to build and display gives a complete satisfaction. Yet whilst I have only been investing for a few weeks now, 70% of my purchases remain as MISB. Yet 30 years ago my world was LEGO - I built all the sets and played with them till the cows come home. I guess being an AFOL brings other responsibilities....

I like the story regarding your recent store visit - as long as people out there think we are indeed reliving some childhood memory then the "LEGO Bubble" (as you aptly describe it) remains somewhat safe and hidden. As for where it leads, then maybe, just maybe it will be a case of follow the "LEGO brick road".

[Spartikis]

I am in the middle as well, i have a vast collection and always looking to expand it and need bulk pieces for building new creations. Investing in LEGO is really the only way i could ever pay for such an expensive hobby, without it i doubt i could justify the expense. One thing i like about LEGO investing is that even if all of the sudden LEGO becomes unpopular, and it turns out it was just a bubble created by a group of AFOL that have moved on to other things in live (which i highly doubt!) i can always open the boxes and build with the pieces, i cant say the same about shares of Apple, Google or stocks that have gone bell up like Enron!

[legotrader]

I am in the middle as well, i have a vast collection and always looking to expand it and need bulk pieces for building new creations. Investing in LEGO is really the only way i could ever pay for such an expensive hobby, without it i doubt i could justify the expense.

One thing i like about LEGO investing is that even if all of the sudden LEGO becomes unpopular, and it turns out it was just a bubble created by a group of AFOL that have moved on to other things in live (which i highly doubt!) i can always open the boxes and build with the pieces, i cant say the same about shares of Apple, Google or stocks that have gone bell up like Enron!

We all can make one hell of a MOC! :)