Learn different tips and advice about investing in Lego
Lego Investing 101
Making money investing in Lego sets is not as easy as some people think. It is not a get rich quick scheme.
However, if you are smart with your buying & reselling decisions, investing in Lego sets can be a very lucrative way to put money in your pocket.
You can think of it like investing in stocks and the right price per brick.
Everyone knows that Lego is the king of children toys when it comes to making a good return on investment (ROI). As an adult fan of Lego (AFOL), you can buy more sets from your profits if you want.
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Latest Lego Investing Articles
Even when you take into account the amount of time you put into the investment, you will still make a good return and earn some decent money in the secondary markets with minimal to medium risk.
The trick is knowing which sets are going to be the most valuable. That’s the hard part. If you are new to Lego investing, there are a few things you should know.
One of the biggest questions in the online community of Lego investing is “What type of sets should I buy?”
There are so many brick options out there, from new releases to retired sets, so how can you know which ones will give you the best return on investment over time?
This is what you can learn if you stick around and read our articles on Lego Investing.
Does Lego Really Outperform Gold as An Investment?
If you’ve ever wondered whether Lego is a better investment than gold (or other precious metals), you’re not alone.
In fact, there is a growing market of Lego investors & resellers who are buying and reselling sets in an attempt to make money just like you do with stocks.
The average price per one brick is about $0.11. Most Lego sets have a price between $0.06 – $0.19
An economic study from 2018 was researched on investing in LEGO plastic bricks. It compared the return of investing in Lego sets during the sample period of 1987-2015 with other ‘traditional’ investments of the same time period.
The researchers found that the Lego investment asset outperformed stocks, bonds, and yes even gold during the same period. The Lego assets yielded an average return of 11% compared to the stock market and other investment portfolios.
Not too shabby. As far as traditional investments like the stock market is concerned, getting an average annual return of 5-10% is good, so this alternative investment has a strong return.
I’d love to see a longer economic study of this same data to see if this is a good long term solid investment since we have had a few roller coaster markets.
Types Of Lego Investments
Legos come in all different shapes, sizes & sets. Most people might think that investing in Legos is just selling the dusty box of bricks that might have been in your basement or attic.
There are actually several ways you can make money with Lego bricks.
Here are the different business models for flipping these plastic brick toys.
Used Lego Collection
1. Selling Used Complete Sets
Most people have probably sold a used set. It was collecting dust on your shelf and your mom threw it in a box and put an ad on Craigslist.
These usually have all the pieces and maybe the manual and box. You can find some good prices and values this way if the seller does not do their homework.
Maybe they need a copy of our investment guide.
2. Used Blocks Not Separated Into Sets
This is the standard box of Lego pieces. Maybe they are mixed in with other unwanted toys that were scooped up.
You can usually find some good deals and get them anywhere from $5 – $12 per pound.
3. Used Mini Figures
These are actually used mini figures that are in low supply and in demand. Mostly these are the characters sets like Star Wars, Disney, Harry Potter or say Lego Captain America.
Mini figure prices are all over the place depending on the rarity of them. A good place to start researching is prices bricklink.com
Usually your generic Lego minifigs from sets like Lego City don’t fetch much.
New Lego Collection
4. Complete Unopened Set
These sets are my bread and butter and make up the majority of my Lego worthy investments. Buy them new and undamaged (I am thinking of my Barnes & Noble Lego boxes), store them and sell them later for some cheddar.
5. New Lego Pieces
This is by far one of the best return on investments if you set it up right and don’t mind the slow dime. The whole strategy relies on buying new sets well below the retail price and parting them out.
You can typically sell the mini figures and make most of your money back, thereby making your cost per piece pennies on the dollar.
Sometimes it will pay for the entire set if you got a huge discount, so essentially your inventory cost of goods is $0. All sales are gravy to plow back into investing in more sets.
6. New Mini Figures
Pretty much same as above. Brand-new sets but you part them out. Let’s say that the definition of new bricks are ones that have never been built. Virgin blocks..LOL
The current prices of these mini figures can be high for special sets that have a huge following like Star Wars. Check out what Queen Amidala minifig goes for here on eBay.
Buy Low, Hold Long & Sell High
The most important part of any investment strategy is to choose the right asset mix. Only you can know the right asset mix that you can consistently hold for a long time & turn your returns into gains.
Lego is no different from any other deals for investment. Buy low, hold and sell high for a profit.
Sounds simple, right?
Well, this is the most typical question that I get. When should I buy them and when should I sell them. How long do I need to hold onto them for?
First, let me advise you that any strategy we discuss here on this site is what I may do. Please do your due diligence and research.
Let’s look at this chart of Jurassic World Indominus Rex Breakout 75919
Maybe you pick this set up just before it retired at Walmart clearance for $75 (Retail price: $119) in December 2016. It retired shortly after that and that is when the values go up.
Here is your ROI if you sold it on Amazon after fees:
You more than doubled your money after holding for 6 months. But if you were patient enough and held it for 2 years, you would have gotten a 4X ROI. It is really your decision on when to cash out.
Lego Reselling Is About Patience
There are a lot of reasons to get into the Lego investing business or reselling business, but for the most part, the ultimate goal is to earn some money.
While the majority of Lego investors buy and sell Legos on the secondary market to make a little side cash, there are a few investors out there who do this full time, and make it their job to purchase Lego sets less than the original price and resell them for a profit.
If you want to make some money reselling Legos, you have to have patience.
Starting out as a brick investor can be overwhelming, due to the sheer amount of information out there.
There’s the entire secondary market to learn about, the times and places to buy and sell, and trends to track.
Most people make the mistake of trying to learn everything at once. They quickly feel overwhelmed and give up, never making any real money from reselling Lego.
Here at Brick Finds & Flips, we understand the journey it takes to resell Legos. We will guide you on what we look for to find Lego deals.
The most important trait you can have to maximize your investment winners is to be patient.
Separate Your Hobby From Your Investments
As a Lego investor, you’d be right to assume that Lego sets should be separated into two categories. The first is sets that you would like to keep and display. The second is sets that you are buying in order to resell for a profit.
Personally, I have 2 collections. One is my inventory that is boxed up and in storage as part of my stronger investment portfolio.
The other is my own sets that I love to collect. The point is you don’t want to mix it as you have to think of it as a business. You can’t dip into business inventory as your accountant will tell you.
3 Tips To Make Money Investing In Lego Sets
This will be a high level overview of what you need to do to turn a profit off of Legos. The basics of any inventory or reselling business is to know your market.
You really need to know the values of what Legos are worth. You have to be patient when you buy them and when you sell them.
Here are some tips to get started:
1. Start With Your Personal Favorite Sets
The key is knowing the values and what they typically sell for and how much demand there is. You will be more familiar with the sets you like.
Once you get the hag of the values over time and the demand, you can expand to other sets.
2. Use Data To Help Make Your Buying Decisions
The right tools are what will help you make the best purchase decision. Some of the best tools include:
- Keepa – It helps you spot when Amazon is out of stock, what the current Amazon market price is, how many sellers. They have a free version, but getting a monthly subscription is worth it.
- Brickseek – This is tool to find what inventory some stores currently have and the price. Believe it or not, different Walmart may offer the same set but at different prices. Sometimes it is hit or miss, but still worth the investment
3. Track Your Lego Inventory
Trust me, you don’t want to try and figure out what you paid or go back to old receipts when you get ready to sell it. Worse, when your accountant ask what your COGS is.
You need these numbers to figure out your profit and ROI.
Keep it simple and write the cost, quantity, date and where you purchased them.
Lego investing is really fun for me because I love seeing the sets climb in value. I get to also build my own sets that I purchased on clearance because I am savvy with the values.
You will enjoy investing in Legos in due time after you figure out the basics. Soon enough you will become part of the Lego investment experts.