Unlocking the Potential of LEGO Investing: A Comprehensive Guide to Building Your Brick-Based Portfolio

This post may contains affiliate links. If you use these links to buy something we may earn a commission. Thanks.

Introduction to LEGO Investing

If you grew up playing with LEGO sets, you might be surprised to learn that those colorful plastic bricks are not just toys but also a potential investment. Yes, you read that right! LEGO investing has gained momentum in recent years, with some sets seeing significant returns on investment. In this article, we will explore the fascinating world of LEGO investing and provide you with insights on how to get started.

A Brief History of LEGO

The LEGO Group was founded in 1932 by Danish carpenter Ole Kirk Christiansen. The name “LEGO” comes from the Danish words “leg godt,” which mean “play well.” The company initially made wooden toys, but they introduced the now-iconic plastic bricks in 1949. Today, LEGO is one of the most recognizable and beloved toy brands in the world.

Understanding LEGO Investing

LEGO investing involves buying and holding LEGO sets with the expectation that their value will increase over time. Like any other investment, it requires research, patience, and a bit of luck. Let’s take a closer look at the different types of LEGO sets you can invest in.

Types of LEGO Sets

Theme Sets: These sets are based on popular themes, such as Star Wars, Harry Potter, or Marvel Superheroes. They tend to be popular among fans and collectors and can appreciate in value over time.

Modular Sets: These sets are part of the LEGO Creator Expert line, which features highly detailed and intricate building models. Modular sets are designed to be connected, creating a larger display.

Rare Sets: Some LEGO sets are produced in limited quantities or become highly sought after due to their unique features. These sets can command high prices in the secondary market.

Limited Edition Sets: LEGO occasionally releases sets for special events or anniversaries, and these limited edition sets can become highly valuable.

The LEGO Secondary Market

LEGO sets can be bought and sold on various online platforms, such as eBay, BrickLink, and Facebook Marketplace. The secondary market for LEGO sets is quite active, with prices fluctuating based on several factors.

Factors Affecting LEGO Set Prices

Demand: Popular sets or themes, especially those with strong fan bases, can experience higher demand, leading to increased prices.

Rarity: Rare or limited edition sets are more difficult to find, which can drive up their prices.

Condition: Sets in pristine condition, with unopened boxes and sealed bags, will typically fetch a higher price compared to used or incomplete sets.

Retired Sets: When LEGO discontinues a set, it can become more valuable due to its limited availability. Collectors and investors often seek out these retired sets.

Tips for Buying and Selling LEGO Sets

Research Your Market: Stay informed about trends in the LEGO community and monitor prices on various platforms to understand the current value of specific sets.

Timing Your Purchases and Sales: Try to buy sets when they are discounted or just before they retire to maximize your potential returns. When selling, consider waiting for the right moment, such as the holiday season or a surge in demand for a particular theme.

Maintaining Set Condition: Preserve the condition of your sets by storing them in a cool, dry, and dark environment. Avoid exposing them to sunlight or moisture.

Building a Diverse LEGO Portfolio: Like any investment, it’s essential to diversify your LEGO collection to minimize risks. Invest in sets from different themes, release years, and price points.

Keep Track of Your Inventory: Maintain a detailed record of your LEGO sets, including purchase prices, dates, and any notes on their condition. This information can help you make informed decisions about when to sell or hold onto specific sets.

Be Patient: LEGO investing requires patience. Some sets may take years to appreciate in value, so it’s essential to have a long-term perspective.

LEGO Investing Vs. Traditional Investments

Pros and Cons of LEGO Investing

Pros:

  1. Fun and engaging: LEGO investing allows you to combine your passion for the hobby with potential financial gains.
  2. Tangible asset: Unlike stocks or bonds, LEGO sets are physical items you can display and enjoy.
  3. Lower entry barrier: You can start investing in LEGO with a relatively small budget compared to other investments.

Cons:

  1. Illiquid: Selling LEGO sets can take time and effort, making them a less liquid investment compared to stocks or bonds.
  2. Storage: LEGO sets require adequate storage space to maintain their condition.
  3. Volatility: The value of LEGO sets can fluctuate, and there are no guarantees of returns on your investment.

Case Studies: Successful LEGO Investments

LEGO Star Wars UCS Millennium Falcon: Released in 2007, this set has appreciated significantly over the years, with some sealed sets fetching over $4,000.

LEGO Taj Mahal: This architectural masterpiece was released in 2008 and retired in 2010. A sealed set can now be worth upwards of $3,000.

LEGO Superheroes: Batman Classic TV Series – Batcave: This nostalgic set from 2016 has seen its value increase substantially, with some sealed sets going for over $1,000.

Conclusion: Is LEGO Investing Worth It?

LEGO investing can be a fun and potentially rewarding way to diversify your investment portfolio. However, it’s essential to approach it with realistic expectations and a willingness to invest time and effort in research and maintenance. While there are no guarantees in the world of LEGO investing, with careful planning and patience, it can indeed pay off.

FAQs

  1. Is LEGO investing a good way to make money? While some LEGO sets have appreciated significantly in value, it’s essential to approach LEGO investing with realistic expectations and a long-term perspective.
  2. Where can I buy and sell LEGO sets for investing? Popular platforms for buying and selling LEGO sets include eBay, BrickLink, and Facebook Marketplace.
  3. How can I determine the value of a LEGO set? Research the current market value of sets by monitoring prices on various platforms and staying informed about trends in the LEGO community.
  4. How long should I hold onto a LEGO set before selling it? There is no definitive answer, as the value of a LEGO set can depend on various factors, such as demand, rarity, and condition. However, patience is key in LEGO investing, and holding onto a set for several years may yield better returns.
  5. Are there any risks involved in LEGO investing? Like any investment, there are risks involved in LEGO investing. The value of LEGO sets can fluctuate, and there are no guarantees of returns. Additionally, LEGO investing requires time, effort, and proper storage to maintain the condition of the sets.

Consider supporting Brick Brains by purchasing your LEGO from LEGO.com using our affiliate links.
We get a small percentage of the purchase total and it doesn’t change the price you pay.

Advertisement

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.