Brickvesting and me

[outatime]

Hi All

This is an introduction of sorts although I have been posting for a little while now although I am really looking for some feedback as far as my brickfollio goes and potential investing. I started getting back into Lego middle of last year after rediscovering my mid 80's space sets and rebuilding 26 different models thinking my son 3 years would love to start building them in a year or two. I then started reading about investing and just got pulled in. So far my brickfollio consists of:

5 HH

5 TH

3 GE

1 EEE

6 AA

14 R2D2

1 Tower Bridge

2 Tumblers

10 RI

1 Technics F1

1 City high speed passenger train

5 Delorians

Think that's about it, my income in somewhat limited to what I can spend but I have 15k that I was planning on putting in a savings account for three years to make a little interest on but its only going to make me like $400 a year if I do so I am thinking of investing it in Lego instead, if its not doing anything in the bank I could have a little fun watching my sets make some money. I have about 8k or more invested so far so almost $25k in Lego can't be a bad thing can it? If not someone please talk me down before I jump! I have the space for it so that's not an issue in an air conditioned environment and the money hasn't been put aside for anything.

I got in at the tail end of a lot of sets going EOL like the HH, TH, GE and more so I grabbed what I could which is why I don't have many but my current plan is to have a diverse brickfollio and have around ten of each set maybe a little more.

So what do you guys think? Any and all advice welcome.

Thanks all

Stuart

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[marcandre]

Looks like you know what your doing. A little early to start buying tumblers imho, could use that money on something that may go sooner like the pet shop. You may consider selling the RIs now while the value is up. They are back in most regions outside the US and could be back here. Love everything else you got.

 

I could be wrong of course, just my 2 cents. 

Edited December 9, 2014 by marcandre

[DenJ91]

you have a great brickfolio, i wish i had a lot of that stuff.  you have done well already.  you have a lot of money to invest, and if can afford to use that money as investment rather than let it sit in a bank that won't get you all that much in interest, then what better than lego.  i mean lego is about as good and safe of an investment as you can make.   

 

what's great is that this site gives you the tools and smart people to get advice and knowledge from.  you invest 25k into lego, and make the smart buys and even if a lot of sets sit for a couple years, you will make A LOT of money.  

 

if i could, i would so my advice is yes...LEGO! 

[Guest brickcrazyhouse]

like marcandre said sell the RI now. i got one this week here in MD. It'll be good practice for the future when you want to cash in.

[legokent]

If you were single and young I would have no problem suggesting you putting all your money into investments. But since you have a family to take care of, probably you should set aside some money for unexpected expenses. Remember there are no investments that have zero risk involved. 

 

With that said, I like the sets you have so far. Keep up the good work!

[Cross]

Outatime... love your post, and glad to share my perspective for your consideration.

 

A lot of folks make a LOT of money here flipping, parting out, etc... I share your exact situation... a reasonable amount of investment capital to start with, and the position to be able to sit on an inventory for some time.

 

That being said, you are making outstanding moves for starting.

 

The fact is, there will ALWAYS be a "hot list" of large exclusives that are in their EOL death-throes or very, very near it. You have put your money into them and it will pay off.

 

Based on the fact that you have ten RI's, I assume you live in either NY, Florida, or California if you are state-side. Some of us Cali folks have easily been able to acquire 20+ of this set based on the enormous advantage we have of Lego Shop exposure.

 

I am with Macandre on Tumbler acquisitions being early, unless your plan is to "flip" them for cash around the Holidays. Otherwise, the Tumbler will be tying up your investment capital and shelf space for some time. When it DOES begin to show signs of retiring, all of us will be acquiring as much of this set as possible. But even as an early acquisition set, there is some time to wait before moving it into that phase.

 

The simplest formula for Lego investing I have found is:

 

A) Lego Exclusives, being...

 

as close to retirement as possible, and

 

C) being as costly as possible.

 

 

Any acquisitions of GE, TH, HH, R2, AA, SSD are obvious smart investments at this point. For your next wave of investing, I would read the forum threads for the following sets and seriously consider:

 

Pet Shop

Tower Bridge

MORE Deloreans

Tower of Orthanc (read the thread on Orthanc from beginning to end- a lot of folks do not understand the investment potential of this set, which several of us rank as extremely valuable)

 

There is some fun and money to be had at the more cost-efficient end, too.

 

Rocket Raccooon from Toys'R'Us for example.

 

And if you read AlpineMaps blog on Mixels, and follow what he has done with them, there's serious money to be made their too.

 

 

 

Welcome to the board.

[DenJ91]

i was under the assumption it was money you had available to do what you wanted with and that you had other money for family etc.  if it's available, then yes i still think lego would be a great way to go.  if it's your savings for example you are playing with then i agree with legokent, maybe take half of it (which is still a lot) for lego and put the other amount in savings because better safe and have a nest egg for family.  

 

excellent post by Cross.  agree on everything he said. 

Edited December 9, 2014 by DenJ91

[Cross]

Agree with Dent.

 

The CHALLENGE you will face with Lego investing is that, even though your sets may grow to three, four, five, or even more MSRP... you still have to sell them.

 

And having the cash from these sales "settle" can take time.

[DenJ91]

^ true.  i think he's saying he has the time though because it would take a while to get interest from the bank.  he would make way way more in lego than in a bank and either way his money is tied up.  

 

even if he used 8k of the 15, that's a lot of money for lego.  i wish i could do that.  smart buys like he's already done and he's golden.  

[outatime]

Hi Guys

 

Thank you very much for your replies and your thoughts,  regarding the money I had it tied up in my UK bank account (I am English but live in Florida) and at about

[Grynn]

Impressive... MOST impressive.

 

The force is strong with this one!

 

 

 

(My recommendation is to flip the Tumblers now for any noticeable profit, to get a small taste of selling something sizable and reinvest that $$$ in AA/ToO or R2)

[DenJ91]

^ I agree, I would flip the Tumblers now during the holiday.  You've nearly doubled your money.  Keep the original cost, and get 2 more for free when it comes back in stock. 

[Neosphinx]

Very good purchases. I think there is little more I can say. Your investment story is similar to mine albeit I made more noob mistakes. Bravo.

[Ciglione]

Looks very good. Nothing to add to that. Little critic: The high speed passenger train. Maybe too early? Will probably be around for 4 years to come.

[Val-E]

Yup, HE would have been better but it also depends on how much was paid. A passenger train @ 40% off is a sound purchase at any time.

 

Pet Shop, 4x4 crawler and MF are the glaring misses but altogether an enviable portfolio.

[justapilgrim]

Might go after MC microworlds can get now, flip now/soon to get used to selling

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