While looking for LEGO stock...

[legobryson]

So I just realized that my son's savings account with @$375 was earning a measly $0.03 per year and I just knew I could find something better to invest his little bit of money in. I thought i would look for a stock that he would enjoy owning and immediately thought of LEGO since he and I are both big fans.

Well as most of you already know, LEGO is privately held and you can't buy their stock, but in my search I came across the brickpicker info and now I believe I have a fun way for my son to learn about investing, buying low and selling high, factoring in overhead fees and all those things that he would do in the stock market one day.

Any easy tips you all feel like sharing for his little bit of money will be appreciated. I know it's not much, but if we can turn that $375 into $400 after all expenses are paid, that would be considered an initial success story even if it didn't happen until Christmas. That $25 is a huge increase vs the $0.03 he would get in his savings account, and I think I'm not being nieve in believing that will be attainable.

JP

[Etan]

Welcome to the site. Lego is the best way to invest.

[kerrmando]

Hey man! Welcome to the site, Instead of buying one or two large sets, I'd suggest buying twenty or so smaller sets (like the captain America's Avenging Cycle) and sell those around Christmas.

 

Think you'd make a whole lot more than 25 bucks

[legobryson]

Thank you for the advice. I do like the idea of multiple small sets and maybe throwing in 1 larger set depending on what I find that looks like a good buy. Thanks again, it is greatly appreciated!

JP

[stephen_rockefeller]

Turning that 375 into 400 will be super easy......shoot higher oh and welcome to the site!

[Guest eightbrick]

Turning that 375 into 400 will be super easy......shoot higher oh and welcome to the site!

 

Agreed. With some deal hunting, you can turn that into a lot more . I suggest you look into some LOTR sets that are retiring soon such as Mines of Moria which is really low if you use the american amazon (you should be able to sell it for nearly 100 in a several months and a lot more in a several years).

 

And welcome to the site BTW. If you have any questions, just ask everyone here will be glad to help. I guarantee your son will enjoy Lego investing a lot more than watching the bank's measly 0.0000000001% interest lol.

[legobryson]

Higher would be icing on the cake. Just using the opportunity to share some real world experiences with my son in a setting that he can relate to is priceless! Also have to convince the significant other that this whole thing can actually work. Lets just say not everyone in the house knows what is going on yet, lol.

Thank you for the welcome!

JP

[legobryson]

Btw, how do I find out what sets are retiring soon? Would have loved getting some of the Pirates of Caribbean ship sets that retired and have since doubled in value.

JP

[Etan]

^ Like always ask the mighty emazers!

[JoshTX]

Welcome. As many have said you should be good on turning 375 into 400. Teaching your son about investing through Lego is a good method. The toughest part will probably be avoiding "getting high off your own supply". This place is a great resource.  

[LowestFormOfWit]

Welcome. As many have said you should be good on turning 375 into 400. Teaching your son about investing through Lego is a good method. The toughest part will probably be avoiding "getting high off your own supply". This place is a great resource.  

I'm so guilty. The better the clearance deals are, the harder time I have passing them up when I'm already tied up/down/however which way you want to put it.

 

Ever since I came here, I see LEGO sets as potential dollars instead of my building bricks. It got so bad I had to sit down and make something like I used to just to snap out of it.

 

And then I listed my creation on Ebay. Oh the shame.

[wesman888]

So I just realized that my son's savings account with @$375 was earning a measly $0.03 per year and I just knew I could find something better to invest his little bit of money in. I thought i would look for a stock that he would enjoy owning and immediately thought of LEGO since he and I are both big fans.

Well as most of you already know, LEGO is privately held and you can't buy their stock, but in my search I came across the brickpicker info and now I believe I have a fun way for my son to learn about investing, buying low and selling high, factoring in overhead fees and all those things that he would do in the stock market one day.

Any easy tips you all feel like sharing for his little bit of money will be appreciated. I know it's not much, but if we can turn that $375 into $400 after all expenses are paid, that would be considered an initial success story even if it didn't happen until Christmas. That $25 is a huge increase vs the $0.03 he would get in his savings account, and I think I'm not being nieve in believing that will be attainable.

JP

I thought nowadays bank makes you keep a minimum 1500 without paying a bank fee???

[legobryson]

I thought nowadays bank makes you keep a minimum 1500 without paying a bank fee???

I have other accounts with the bank, so this was one of those free accounts they let you have with no minimums or fees.

[legobryson]

Welcome. As many have said you should be good on turning 375 into 400. Teaching your son about investing through Lego is a good method. The toughest part will probably be avoiding "getting high off your own supply". This place is a great resource.

I've done a ton of reading here today/tonight already and still no closer to pulling the trigger on our first purchase, but I'm hopefully learning enough to make some smart purchases. I am going to also try my best to only invest the money my son has and not get sucked into buying every "deal" I come across. lol

JP

[stephen_rockefeller]

Btw, how do I find out what sets are retiring soon? Would have loved getting some of the Pirates of Caribbean ship sets that retired and have since doubled in value.

JP

We have a few members here who have a little bit of insider info and kinda know when some sets are gonna retire. Nothing is gospel here though. With the exception of a few sets most of us here can guage more or less when a set is gonna retire.

[Diabolos80]

I think kermando's idea of buying and flipping several small sets would be a good start for you and your son. It'll be more work for more transactions, which will mean more oppurtunities for both of you to learn. I've been buying and selling for just six months. I feel I have a decent grasp of the market, but I still learn something new almost every time a set changes hands. And keep in mind, just because you invest in it doesn't mean you can't build it. Used Lego sets hold their value remarkably well.

[CNH1974]

And some sets never retire 10197 Fire Brigade and 10188 Death Star...

 

Someone mentioned Mines of Moria is retiring, this set was not on Emazers list, I believe he said only the even numbered LOTR sets are going in June.

[LowestFormOfWit]

Mines of Moria is likely with us for the rest of the year. Even after it goes EOL, because there's just SO MANY out there unsold, it may take time to appreciate.

[chinothegeeko]

Welcome to the site and what a great idea for teaching your son. I might just give that one a try for legos. My son does well giving up older toys for me to sell so he can  get newer things he likes. Helps control the clutter.

[sadowsk1]

Hey man! Welcome to the site, Instead of buying one or two large sets, I'd suggest buying twenty or so smaller sets (like the captain America's Avenging Cycle) and sell those around Christmas.

 

Think you'd make a whole lot more than 25 bucks

I agree to this.  It makes a more diversified 'portfolio' and can make the activity of buying and selling more interesting and engaging. 

[legobryson]

Thank you everyone for all of the feedback! Right now we are just waiting to buy some sets on clearance or with some sort of discount to improve the chances that they will be profitable in the end. I'm somewhat concerned about eBay and PayPal fees along with shipping costs eating into smaller margins.

JP

[akohns]

I agree to this.  It makes a more diversified 'portfolio' and can make the activity of buying and selling more interesting and engaging. 

I would agree with this. Also consider spending part on investment sets and the remainder going to search for used collections. He can very easily expand his/your collection by buying great used lots and rebuilding used sets to sell off for a profit on his money as well. 

[JoshTX]

Thank you everyone for all of the feedback! Right now we are just waiting to buy some sets on clearance or with some sort of discount to improve the chances that they will be profitable in the end. I'm somewhat concerned about eBay and PayPal fees along with shipping costs eating into smaller margins.

JP

Indeed, that is something you have to take into account, and it can be more painful with the smaller sets when the ROI percentage may equate to just a couple bucks. Ebay will probably always be option number 1, but remember there are other avenues out there, including the Brick classifieds section of this site when it gets up and running.

 

The other nice thing about smaller sets, is they are a good learning tool as others have said, because there is less risk involved. If the Captain America cycle flops, for example, you obviously won't be hurt too badly in comparison with a bigger set that has flopped. If you spent your son's savings on 4 $100 Star Wars Home One sets, you'd probably have to take a significant loss or just break even. So diversity is obviously important, and hedging your bets on a single stock is alot more risky.

[Sauromosis]

Thank you everyone for all of the feedback! Right now we are just waiting to buy some sets on clearance or with some sort of discount to improve the chances that they will be profitable in the end. I'm somewhat concerned about eBay and PayPal fees along with shipping costs eating into smaller margins.

JP

 

Which is why I'm never too excited by lower-priced sets.  Even if you get a 20 dollar set that triples in value, the fees and shipping will eat a lot of that up.  Heck, even a 50 dollar set that doubles isn't giving you that much when you ship it.

 

I look for sets with an MSRP of $100 or higher that are 25-30% off.

 

Welcome to the site!

[Guest ph4tb0i]

I've played around with buying small, medium, and large sets and I think the ones that I'm now the most comfortable with are what I call the mid-range ones. These are the ones that will typically MSRP at around 39.99USD - 149.99USD, have about 300-1200 pieces and can be bought on sale between $30 - $100 dollars. If you pick them right a lot of them will see a 100% ROI, and are significantly easier to ship than a DS. You might not make as much $ profit per transaction but it's a good balance between hedging on several big sets and hedging on too many little sets. You'll also diversify but not to the point where a transaction returns no more than a couple of bucks.