Is Lego Investing Recession Proof?

[paulstenson]

Over the past 4-5 years, the world economies have struggled. You would think that this would reduce Lego sales and prices, especially in the secondary markets like Ebay. But Lego has record profits and Lego set prices remain strong on auction sites. So my question to you is: Is Lego investing recession proof?

[MaximusLegous]

Nothing is recession proof, but some toys like Lego bricks could be close. The Mom and Dads of the world like to spoil their kids and what better way to do it than buy them Lego sets?

[seaweedsm7]

Nothing is recession proof, but some toys like Lego bricks could be close. The Mom and Dads of the world like to spoil their kids and what better way to do it than buy them Lego sets?

Bump this.

[Ed Mack]

As stated above, nothing is recession proof....especially if the current world economies get worse. That being said, I believe in the exceptional nature of the LEGO brand. It is a well designed, high quality toy that has a proven track record and millions of fans, both young and old. LEGO fans have always paid a premium to buy a LEGO set, but that hasn't seemed to affect recent sales, even during the recent economic slump. It would appear that people enjoy buying toys for their kids and will continue, even if their money is tight.

[CelesAurivern]

Recession proof? Depends on how you look at it. 1. If you're looking at how long a regional economic recession will last on average, you'll probably live long enough to ride it out and see good times again. 2. You're looking at a global market here. Barring WWIII, even if your nation's economy collapses and your currency is worth nothing, remember that you can always sell for a foreign currency. 3. As long as your set is MISB, and you're not desperate to liquidate, you should be at least be able to get back your principal investment. In my opinion, it's a product very well insulated against recession. If you're looking at serious investment, not as a part-time hobby, consider buying gold bullion instead.

[Doofy McGee]

...And if you've got the cash, then perhaps consider having your gold bullion fashioned into little gold mini figures. :)

[Ktworld]

I think a better analogy (and a more hopeful one) regarding lego investment would be to compare it to wine investment..... They both have the benefit of the product itself having "material" value at least at MSRP, not just perceived value, both takes effort and resources to store properly at large quantities, and both have fixed and diminishing quantities once the product becomes eol'ed..... just my .02

[Ed Mack]

I think a better analogy (and a more hopeful one) regarding lego investment would be to compare it to wine investment..... They both have the benefit of the product itself having "material" value at least at MSRP, not just perceived value, both takes effort and resources to store properly at large quantities, and both have fixed and diminishing quantities once the product becomes eol'ed.....

just my .02

Nice comparison. I never thought of wine as an investment. I always assumed people who bought and stored wine would eventually drink it. What do I know? I drink milk...

[Spartikis]

I read a article recently about how LEGO was able to make profits during the last recession while other toy companies struggled. One of the key findings was that parents wanted a toy that was durable and would last, they would gladly pay more for a toy like LEGO, that will last generations, its reusable to build again and again, its of high quality, both boys and girls enjoy playing with it, etc... Parents were sick of cheap throw away toys or video games that lost 95% of their value once you break the plastic seal. In summary, parents would rather spend their small amount of money for a child's gift on one quality toy than dozens of lower quality toys....quality over quantity.