Lego investing has become increasingly popular recently as a way to earn stable returns compared to volatile stocks and bonds. This article will explore key strategies and tips for investing in Lego, including how to spot valuable retired sets, where to find Lego deals, optimal holding periods, and factors impacting Lego value appreciation. By applying smart Lego investing principles, it’s possible for hobbyists and serious investors alike to profit from this niche but lucrative collectibles market.
Look for soon-to-retire sets for maximum ROI potential
One of the most important factors in Lego investing is identifying sets that are about to go out of production. These retiring sets often get heavily discounted by 30-40% in official Lego stores and retailers as they sell out remaining inventory. Buying at lower cost basis and then reselling sealed sets after retirement makes it possible to achieve returns of 150-250% fairly quickly. Sites like Brickset can indicate likelihood of retirement based on set age and market data.
Optimal holding period is 2-3 years after retirement for max gains
While some profits can be captured by flipping newly retired sets within months, maximum appreciation requires more patience. Economists estimate the Lego secondary market moves slower than stocks or collectibles like art. Holding onto sealed retired sets for 2-3 years allows scarcity and demand to drive up aftermarket prices substantially. Trying to time the peaks too aggressively leads to leaving gains on the table.
Target exclusives and limited editions have extra premium
Normal Lego sets have inherent value, but the ones with real standout investor appeal are exclusive editions only available at certain retailers like Target or San Diego Comic Con events. These limited supply releases command higher premiums from serious AFOL collectors in the secondary market. Even standard editions of super popular entertainment IPs like Star Wars gain extra collector appeal.
Condition is key – keep boxes sealed and in pristine shape
Since Lego investors are buying online sight unseen, they rely heavily on condition. Keeping retired sets sealed in original packaging and minimizing any box damage is essential. Rare parts or minifigures are also closely inspected, so any opened or incomplete sets will suffer significant value impairments. Proper storage and humidity control helps maintain ideal conditions.
Diversify across themes and time retirement dates
While buying multiples of the same retiring set can be profitable, diversification is still important in Lego investing. Entertainment licenses and themes that are hot today may cool in the future, so spreading holdings across Lego universes helps mitigate risk. Similarly, staggering purchase and sale dates over multiple years smooths out market volatility exposure.
Lego investing offers average returns higher than most collectibles if executed properly. By targeting soon-to-retire sets, being patient selling after 2-3 years, focusing on exclusives with premium appeal, keeping sets sealed in pristine condition, and diversifying themes and timing, investors can turn Lego from child’s toy to serious money-maker.