Investing in LEGO with Investabrick’s Medium Term LEGO Investment Strategy
Published: 4 months ago
Last Updated: 4 months ago
rds scheme is advantageous for LEGO investors, offering exclusive access to limited-edition sets and early product releases, which are often highly coveted in the resale market. Members can also earn points on their purchases that can be redeemed for discounts, increasing profitability when acquiring investment pieces. At Investabrick, we have a goal to help people learn how to invest in LEGO and one of the key options available to LEGO investors is a medium-term strategy for investing in LEGO, targeting a sweet spot of 1 to 3 years for holding onto sets.
This approach balances the immediacy of short-term gains with the patience required for long-term growth, focusing on capitalizing on the value surge experienced by many LEGO sets post-retirement into a period of continued gains but also selling them before that growth begins to decline.
Done well, this can be seen as the best of both worlds in LEGO investing!
What is Medium-Term LEGO Investing?
The key to medium-term LEGO investing lies in selecting sets that are likely to appreciate in value shortly after their retirement from retail sale but continue to grow over the following year or two. Success in this strategy depends on identifying sets that will have that initial post-retirement uplift in value along with the characteristics and appeal that will sustain demand and drive up their value long after this too.
Key criteria we are looking at to inform our selections include:
- LEGO sets that have a strong demand whilst at retail sale
- Minimal or limited discounting to the sets RRP whilst at retail sale
- Indication that the set will sell above RRP when there is a clear shortage of stock during its retail sale period
- Sets that come from LEGO investment themes (or sub-themes) which have strong historical trends of providing successful LEGO investments.
- Sets from themes we think will continue to be desirable for at least the next 3 to 5 years
- Sets and themes that appeal to LEGO collectors
Investabrick’s meticulous selection process prioritizes LEGOs investment sets that are not only popular but also can possess unique appeal through rare themes, exclusive minifigures, or exceptional design complexity as well as having the right supply and demand profiles to make them ideal medium-term LEGO investments.
Is LEGO a Good Investment?
LEGO is a unique product and a wonderful investment opportunity with average annual LEGO investment returns of 10% achievable, however with some additional knowledge and insight it is possible to make far greater LEGO investment returns.
What makes LEGO such a good investment:
- Underlying average returns of 10% per year
- Ability to make far greater returns with targeted investment
- Limited supply which is also time constrained with sets becoming retired LEGO from as short a period of a few months usually up to several years
- Sustained demand for LEGO themes and the sets within long after they have been retired from retail sale
- Increasing rarity of the sets after becoming retired LEGO sets
- Increasing value as a culmination of the limited supply, sustained demand and increasing rarity.
Medium term LEGO investors should conduct thorough research and aim to create a diversified portfolio of LEGO investments, keeping up to date with which LEGO themes and sub-themes are performing best along with future retirement lists. By employing a medium term LEGO investment strategy with a flexible approach combining the best facets of short and long term investing in a best of both approach it is possible to make substantial LEGO investment returns.
What are the Benefits of Medium-Term LEGO Investment?
At Investabrick we see medium term LEGO investing as the sweet spot in the middle between the two extremes of short term LEGO investing and long term LEGO investing and uniquely situated to enable savvy LEGO investors the opportunity to benefit from the positives of both of these strategies. This includes:
- Initial post-retirement uplift in retired LEGO set values
- Continued appreciation in value after the initial retirement uplift has been seen for between 1 and 3 years
- Greater flexibility to morph between different LEGO investment strategies and react to changing values, supply and demand levels enabling you to maximise your LEGO investment profits
A Detailed Example – LEGO 76148 Spider-man vs Doc Ock
To best demonstrate the medium-term LEGOs investment strategy, we have worked through a set one of our founders purchased close to its LEGO retirement in December 2020.
This was a phenomenal LEGO investment with a medium-term time frame of 3 years. The LEGOs investment was made at $20 just before it became a retired LEGO set in December 2020 and sold just under 3 years later for 250% profit!
As a potential LEGOs investment set, LEGO 76148 ticked a lot of the boxes; there was strong demand, controlled supply, rarely discounted, occasionally sold well above RRP on Amazon when out of stock elsewhere, 3 popular LEGO minifigures of which the 2 uniques were particularly strong (and accounted for half of the sets RRP).
Fast forward nearly 3 years and LEGO 76148 was sold on Amazon for $70, three and a half times its RRP – a stunning LEGO investment. This LEGO investment return equates to just over 50% a year returned compounding over the 3 years and a perfect example of what is possible with medium-term LEGOs investing, especially when you have Investabrick to guide you on your LEGO investing journey.
Conclusion
Medium-term investing in LEGO sets offers an engaging blend of enjoyment and potential financial gain. By carefully selecting LEGO investment sets poised for post-retirement appreciation and utilizing platforms for buying and selling, LEGO investors can build a profitable portfolio.
Set selection is critical, identifying the right LEGO investment set profiles, purchasing these new LEGO sets at the right time and at the right price then monitoring their performance before selling at the best price and time, ideally a few years in the future, whilst maintaining flexibility to pivot to either a shorter or a longer timescale dependent on performance after retirement.
Along with this guide, Investabrick provides the essential tools, information, and community support needed to navigate this investment strategy successfully. Whether you're a seasoned collector or new to LEGO investing, Investabrick's medium-term investment guide equips you with the knowledge to thrive in the dynamic LEGO investment market and enables you to get the best advantaged from long and short term investing approaches with this hybrid LEGO investing strategy.
