Hi guys, Like many i've come out of my so called dark ages quite a while ago. I started "small" and bought a ucs at-st like 2 years ago followed by a ucs imperial ship. I then had sort of a cold spot until this year where i managed to bricklink a 10179 falcon (cost me about 600 euros). Now i love building lego even though my gf almost gets crazy when i order some (lol) but i also think it really is a good investment. However, given the price tag of many sets, one has to think twice about pilling them up in a closet for hypothetical gain later... So this may come as a dumb question on this site but has anyone actually made some good benefits with inveting in lego? Is it really worth it? Cheers

On paper...yes. I have made a substantial amount of money. In reality, no. I have never sold a set. I am not the model "reseller" though. I am a collector first. I will resell some sets one day and hopefully make a nice profit after commissions and taxes.

I have never sold a set.

Wow. I need to figure out to get that much "disposable" income for my hobby. I could understand selling only some off to pay for more, but to never part with a set? You might need a 12 step program.....

I think Ed is just saving them up to give to all of us! (wishful thinking)

Well here's the thing. Where do you feel comfortable investing your money? Stock Market? That's about ready to tank and do you really trust politicians messing with the fiscal cliff? Real estate? Gold? I watch first hand the strength and consistency of LEGO investing and feel that for my personal investing goals that LEGO bricks are a solid choice with a bright future. But that's just my opinion. There are many ways to invest in LEGO bricks and my style is not the ideal method for maximizing profits. Good luck with finding yours....

I totally get what you are saying Ed and i'd rather invest in lego bricks than stocks or gold. It's just he hoarding part of lego investing that scares me a little i guess, the ucs ssd i got yesterday is freakin huge...! Where i live renting a storage box is not as simple as it would be in the US...

I wish I could find a way to quit my day job and make a living investing in LEGO. While I know that it is possible to do so, I feel that it would be very very hard and that is why there are not a ton of people doing it for a living. I'm pretty sure all of us do this on the side in our spare time.

If i could make it may everyday job i would!

I think we all would make this our everyday job if we could, including myself. This would be great!! However it would take quite a large initial investment in order to really bring in enough money to live off of and pay the bills. You would have to have ten's of thousands of dollars in Lego sets to really start bringing in enough $$$ to live comfortably. Not saying its not possible, it would just take a large initial investment to really make that $$$, as most companies or businesses do in life.

I'm on the same brick with Ed, a collector first above everything. However, unlike him, I really have no intention of selling anything whatsoever. If I do, it will be some small odds & ends, but I wouldn't hold my breath. I have other plans for my collection of LEGO (mwahahaha!).

There are some ways one could make a living with LEGO, but they don't involve investing. Investing takes time. Lots of it. Not everyone has that kind of opportunity to basically 'sit on it'. Investing should be something done on the side. Like Rich B just mentioned, you need a very large starting amount of serious cash in order to make even more eventually (hopefully).

The article Ed did about custom LEGO-related items points towards a market that anyone with a real creative talent could actually make a living at over time. Selling custom MOC instructions, minifigures, set kits, even various minifig accessories, anybody here could actually make a living at it! Admitably when it comes to custom minifigures or accessories, there is the large initial investment for the right equipment and resources, but eventually things do even out. Otherwise, we wouldn't still have BrickArms or BrickForge (plus many others) if this was false.

That reminds me, I should see what BrickArms is up to!

There is money to be made from selling LEGO parts and sets, but unless you are able to make it your full time job (which does indeed drain all the fun out of it and become "a JOB") investing in LEGO is best seen as a way to support your hobby. Getting started, however, is a Sisyphean struggle on slippery slope razor's edge tightrope, metaphorical train wreck. If you choose the wrong set, or just at the wrong time, you're stuck. The counter-intuitive idea behind LEGO investing is that if you can't afford one Death Star, buy two! But if you're like the rest of us (I.e. human) and spending hundreds or thousands of dollars on children's plastic building blocks you hide in your closet for a few years makes you pee your pants just a little bit (in nervousness or excitement...) then spending well over what it would cost to simply have and enjoy the sets for yourself does seem foolish. The ideal model is one in which last year's silver bullets (IF & EN) pay for this year's IS, DA, etc. Were you hoarding LEGO last year? Me neither, hence the Sisyphean razor rope etc etc... So, "good" money? I suppose it depends on your financial situation in the first place. I personally would like to see every AFOL able to break even. Renting warehouses and hiring employees is another story.

Hard pressed to see legos outperforming other long term investment options. If this is your only investment strategy I would be concerned because you have no diversification. For people that have 100's or 1000's of old sets are you properly insured? Fire or other natural disaster can quickly wipe out your whole portfolio. Is the insurance company going to value that UCS falcon at 500 or the current value? I am in it for the fun and hopefully to break even. If its a bust I have 2 young boys and they will have a ton of legos lol. Fine line between investing/hoarding/collecting not sure where I am on that line just yet.....

Diversification is key!! Don't spend all your money on Lego, if the market tanks you will just be sitting on a big pile of plastic. Also when investing in Lego diversify in terms of what sets you buy. Don't buy 50 Grand Emporiums, instead buy a couple Grand Emporiums and a bunch of other sets. If you are someone who does not build Lego buy sets you wouldn't mind building, because if the market fails then at least you can build your sets. If you solely invest in Lego and have no urge what so ever to build them, think twice about investing in Lego in the first place. I am a collector/investor, but I also love building Lego and if the market flopped tomorrow I would be dissapointed, but not heart broken or suicidal becuase I know I could always build my collection. Again don't buy 50 grand Emporiums becuase who the heck wants to build 50 GE's? 2 or 3 GE's built together might look pretty cool, but cetainly not 50. Also like Ed has said before, think outside the box when investing in Lego sets. Yes the popular large scale models and modulars are investors favorites, but they're also what almost every investor has. There are plenty of smaller/less expensive sets that out perform the market when retired.

I totally get what you are saying Ed and i'd rather invest in lego bricks than stocks or gold. It's just he hoarding part of lego investing that scares me a little i guess, the ucs ssd i got yesterday is freakin huge...!

Where i live renting a storage box is not as simple as it would be in the US...

Don't follow my method of LEGO investing if you want to maximize profits. The best way is to invest in multiples of popular sets, hold onto them for 2-4 years, then sell them. This way, you limit the "hoarding" aspect of LEGO investing and keep storage issues to a minimum. Proper storage is the main issue with LEGO investing and limits many investor's ability to make large profits. Many people do not have the room to store 3000 LEGO sets like I do, so either you adapt your investing method or rent storage space, which costs money and eats profits.

Diversification is key!!

I keep saying that myself. When you only have so much to spend, buying sets that interest you or ones you think will do well is fine, but even then you're selection needs to be broader than your own tastes.

When you are buying a set to invest in, you are not buying it for yourself, you are buying it for other people to buy.

Everybody has their own preferances and each should be considered. If you only put stock in the same field, it could be a while before someone does buy that set off your hands, and you may not break even either. It's like running a coffee bar and all you serve is mocha's because that's all you like.

How many times has a theme or set no one seemed to care for in the first place, ended up being a bigtime bread winner. Of course you can't buy all sets under the sun, but you can still try to cover your bases.

Can you make bad money? I kid, I kid. I've made about $650 the last month (minus feebay's cut) selling 4 sets that I bought off of Craigslist and flipped. Do I find that many sets every month? No. But you have to be on the lookout for other ways to make money in the Lego universe. I don't have the cash to buy 2-3 of every large set that comes along. But I do have enough to buy key sets, on sale, and find a few sleeper deals every now and then. Right now I am hoping for some BAMF (bad-ass Monster Fighters) deals. Haunted House and Vampyre Mansion FTW!

Hard pressed to see legos outperforming other long term investment options. If this is your only investment strategy I would be concerned because you have no diversification.

For people that have 100's or 1000's of old sets are you properly insured? Fire or other natural disaster can quickly wipe out your whole portfolio. Is the insurance company going to value that UCS falcon at 500 or the current value?

I am in it for the fun and hopefully to break even. If its a bust I have 2 young boys and they will have a ton of legos lol. Fine line between investing/hoarding/collecting not sure where I am on that line just yet.....

LEGO sets have outperformed the stock market for well over 10 years now. A month or two ago, the S & P 500 was yielding around 14% this year. No longer. More like 5% as of yesterday. Yet the average LEGO sets continue their steady annual 10% return. Not all sets are winners. There are many losers out there, just like in stocks. But there are plenty of LEGO sets and stocks that outperform the norm. Trick with any investment, picking the right one and selling at the right time. On another note, I agree with you about investment diversification. Diversify in all sorts of investments. I do. Not all my money is tied up in LEGO sets. Just 99.9 %. LOL. And like Rich said, diversify in LEGO set themes. Mix it up.

Well I am new to investing in Lego. Started about a month ago, so I have some time before my sets appreciate before I flip them. In the meantime I am diversifying into a related Lego investing selling small sets and individual parts through Bricklink. There is money to be made there. It's more work, but I don't mind it, because I am in it for fun and challenge. It's my new hobby, I won't get rich quick, so I guess it depends what you are looking for. I wonder if a fail safe strategy for Lego set investors would be to sell sets after appreciation for profit, and those sets that are duds could be parted out and selling them through Bricklink. To me that seems to make sense. Anybody else trying out or doing this strategy? Miro

Well I am new to investing in Lego. Started about a month ago, so I have some time before my sets appreciate before I flip them. In the meantime I am diversifying into a related Lego investing selling small sets and individual parts through Bricklink. There is money to be made there. It's more work, but I don't mind it, because I am in it for fun and challenge. It's my new hobby, I won't get rich quick, so I guess it depends what you are looking for. I wonder if a fail safe strategy for Lego set investors would be to sell sets after appreciation for profit, and those sets that are duds could be parted out and selling them through Bricklink. To me that seems to make sense.

Anybody else trying out or doing this strategy?

Miro

I think a couple people here have Bricklink stores and are in the business of selling individual parts. I've thought of doing that myself one day. At the least I thought of selling some of my unwanted extras from those MINIFIGURES mystery bags. While there are collectors who will buy boxed sets (new or used), there will always be MOC'ers looking to purchase that 'one last piece' they need to complete their work of art.

So yeah, having a 'parts store' is a great way to go for a way to earn extra income all year long.

I think a couple people here have Bricklink stores and are in the business of selling individual parts. I've thought of doing that myself one day. At the least I thought of selling some of my unwanted extras from those MINIFIGURES mystery bags. While there are collectors who will buy boxed sets (new or used), there will always be MOC'ers looking to purchase that 'one last piece' they need to complete their work of art.

So yeah, having a 'parts store' is a great way to go for a way to earn extra income all year long.

I have a small Bricklink store, I can tell you that it is a pain in the ass to get started. It takes awhile to familiarize yourself with everything over there, and then getting everything up is a big project. But once you get it all done, it pretty much takes care of itself. I'm not getting rich, but I am getting rid of some bricks that I don't really need.