The Downside of LEGO Investing: 7 Reasons Why It Absolutely Sucks from Youtuber- Deal Watch
In this video titled “Why LEGO INVESTING Sucks,” the presenter discusses seven reasons why investing in LEGO for profit may not be as great as it seems. The first reason mentioned is the issue of LEGO remakes. With LEGO releasing a significant number of sets each year, a percentage of them are remakes of previous sets. This is bad news for investors who may have invested in large quantities of a certain set, only to have LEGO release a newer version a few years later, causing a drop in the value of the original set. Exclusive minifigures released in other sets also have the potential to impact profits.
The second reason highlighted is the space required for LEGO investing. Collecting and storing hundreds of sealed LEGO sets can quickly take up a significant amount of space. Investing in a storage unit to hold these sets can eat into profits, as storage unit rental fees can be expensive. Additionally, precautions must be taken to ensure that the sealed sets don’t suffer any damage, as this can result in a loss of value.
The next reason discussed is the need to stay informed and be in the loop about the latest trends and market performance. Researching which sets have performed well in retirement and staying up to date with the latest LEGO news and promotions can be time-consuming.
Expenses, including fees and shipping costs, are the fourth reason mentioned. These expenses can significantly impact profits, requiring higher selling prices to achieve desired returns.
The fifth reason is that LEGO investing is not a passive income. It involves active participation in packing and shipping sets, communicating with buyers, researching sets to invest in, and searching for discounts and promotions. It can be akin to having a part-time job.
The stigma surrounding LEGO investing is the sixth reason discussed. Some people dislike LEGO investors, believing they artificially increase prices by buying up large amounts of supply. However, the presenter argues that LEGO investors actually help keep prices down by providing a supply of retired sets on the aftermarket.
Lastly, LEGO investing is becoming more saturated due to its low barrier to entry. With anyone able to buy LEGO sets and wait for them to appreciate in value, more and more people are participating in LEGO investing. This increased demand has led to certain sets, like the 501st battle pack and the armored assault tank, stagnating in price.
Overall, the presenter suggests that while LEGO investing may not be as attractive as it once was, it is still possible to make profits with the right research and understanding of the market. However, it is important to acknowledge the risks and be prepared for the time and effort required.
(Note: The transcript provided has been edited for clarity and conciseness.)
Check out this video from Deal Watch here
