Investing in LEGO with Investabricks short term LEGO investment strategy
Published: 6 months ago
Last Updated: 4 months ago
Investing in LEGO for short-term gains is an increasingly popular strategy among both LEGO enthusiasts and LEGO investors. At Investabrick, we have a passion for helping people learn how to invest in LEGO and we've honed this approach, focusing on the potential of LEGO investments to yield significant returns in a period from as little as a day up to one year. This method, often seen as a "quick flip," leverages immediate opportunities in the market to capitalize on Legos investments in a relatively short timeframe.
What is Short-Term LEGO Investing?
Short-term investing in LEGO is all about identifying sets that are likely to increase in value over a brief period enabling us to flip our LEGO investment asset, albeit this strategy can be applied to LEGO investing for a number of reasons. These include:
- We expect a large increase in value when the set become retired LEGO at the end of its retail shelf life. This is fundamental to almost all LEGO investment strategies but especially important in the majority of short-term LEGO investments
- We have identified a short-term supply issue is likely and that we can sell at an increased price during this period. There are often opportunities when Lego.com themselves are out of stock of sets that the price can spike up on marketplaces such as Ebay and Amazon. These opportunities can occur whilst the LEGO model is still at retail sale and yet to be retired LEGO
- An external event may lead to either a sudden increase in demand, a sudden decrease in supply or in the perfect scenario a combination of both, leading to a large short-term rise in prices and a great opportunity for a short-term LEGO investment (most likely this type of LEGO investment will only be for a number of days or weeks!)
- We want to break the set up to capitalise on its piece per part. Some LEGO sets are actually worth 3 or 4 times the sum of their parts due to containing some rare parts and having a relatively low RRP, leading to a strategy of parting the set straight after buying it
- We may want to buy just for the included LEGO minifigures and then sell the rest of the set (a mild version of parting the set as above)
LEGO investors often target Legos investment sets that are hard to find or are on the brink of retirement, anticipating a spike in value. Online platforms such as Amazon and eBay provide fertile ground for snagging LEGO deals or capitalizing on exclusives, as well as the traditional retails shops such as LEGO’s own shop, Target, Barnes and Noble, John Lewis and Argos further enhancing the potential for profitable flips.
Whilst LEGO investment returns of an average of more than 10% a year can be achieved, the potential exists to make much larger gains in the very short term with some sets appreciating more than 100% in their first year of retirement.
Is LEGO a Good Investment?
The question of whether LEGO sets are a good investment is met with a massive yes! especially when approached with a strategic mindset and based on the historic LEGO investment returns that have
been achieved. The tangible nature of LEGO sets, combined with the joy and nostalgia they bring, adds a unique layer of value to this investment type. These LEGO sets not only appeal to LEGO investors, but to LEGO collectors, LEGO builders especially those who like to display their LEGO sets.
Furthermore, the volatility and uncertainty in traditional markets have made LEGOS investments an appealing alternative and one that can be very profitable if accurately targeted.
At Investabrick we are continually evaluating a large number of current LEGO sets looking for profitable LEGO investments, refining our LEGO investment strategies and evaluating potential LEGO investment opportunities and sharing this information and our research tools with fellow LEGO investors.
What are the Benefits of Short-Term LEGO Investing?
There are many benefits of short-term LEGO investing. These include:
- Holding LEGO investments for a short time makes it possible to recycle your funds into new investments repeatedly to allow you to compound your LEGO investment gains
- The largest changes in LEGO values often occur in a short period of time so a well targeted short-term LEGO investment approach can lead to some of the highest LEGO investment returns. This is especially true around the time that LEGO sets are retired from retail sale and this strategy can maximise the profit from this retirement pop
- For LEGO enthusiasts it enables you to purchase a larger variety of sets and continually be looking at new sets to purchase and invest in before reselling and starting the process again
- There is less requirement to have large tailored storage solutions that you may feel are required for longer-term LEGO investment strategies
A working Example - LEGO 75319 – LEGO Star Wars The Armorer’s Mandalorian Forge
To better demonstrate the concept, we thought it best to work through a real example of a Legos set we invested in a year ago and take you through the cycle of a short-term LEGO investment.
This was an amazing LEGO investment and short-term LEGO flip for anyone who purchased it at its $30 RRP just before it retired in December 2022.
This LEGOS investment set had strong demand, been rarely discounted in its retail period and often sold above RRP on Amazon.
LEGO 75319 had 2 very strong unique LEGO minifigures within the 3 that came with the set (which were worth $15, half of the sets value at RRP).
Just 12 months later, the set was selling on Amazon at (and occasionally above) its then LEGO valuation of $60, leading to 100% profit, an amazing LEGO investment I think everyone would agree! The main ingredient in the success was the strength of the 2 unique LEGO minifigures which themselves would have a combined value of $40 a year later.
Conclusion
Short-term investing in LEGO sets represents a viable and potentially lucrative avenue within the alternative investment space. By leveraging quick flips, investors can enjoy rapid profit turnover while engaging with a product that holds generational appeal. Success in LEGO investing requires research, dedication, and a bit of luck.
With the ability to focus on the end of a LEGO sets retail life and other other unique circumstances that can lead to a short term uplift in price, this approach can maximise the profits you make from your LEGO investment portfolio.
Hopefully we have displayed that with Investabrick's guidance and resources, both seasoned investors and LEGO enthusiasts can explore the financial potential of their hobby, unlocking opportunities for growth and profit in the vibrant world of LEGO investment like the LEGO Star Wars example above. We will regularly look to identify opportunities like this for you to join us as profitable short-term LEGO investors.
