Is LEGO® a good investment?
Let us start at the beginning. No one knows exactly what will happen in the coming years, but the best guide we have is historical performance.
According to a study by HSE University published in the Research in International Business and Finance journal in 2022:
“Average returns on LEGO® sets are 10-11% annually (and even higher if the new set was purchased on the primary market with a discount), which is more than stocks, bonds, gold, and many collectible items, such as stamps or wine, yield”.
OK, so we just buy some sets and they all return 10%+ a year? If only it was that easy! Clearly, like any investments, there are going to be good examples and bad!
So how do I choose which LEGO sets to invest in?
We have a number of rules we try and follow when we are choosing to invest, or recommending investing in a LEGO® set:
- Purchase at the lowest price possible
- Purchase sets we think will see decent price growth above RRP once retired
- Purchase from a theme, and ideally sub-theme that have decent historic growth
- Purchase from themes/genre’s you know and understand, or at least research before buying
- Try to buy sets (or those with promotional gifts) which are likely to be scarce in future
So I’ve bought some LEGO® sets, now what?
There are some simple guidelines to follow to look after your assets so that you can maximise their price when the time comes to sell:
- Keep the sets sealed in box (link to article on the impact of condition on a set’s value)
- Store the sets properly so that there is no damage to them (link to how to store a set)
- Update your portfolio so that you can track your investment performance
How do I know when to sell my LEGO® set?
There are no hard and fast rules as to when you sell a set, some you may sell soon after retirement, some you may choose to hold onto for decades. It really is set (and theme) specific. We use the following guidelines to consider whether the time is right to sell:
- Current price of the set appears to have reached a plateau or started to fall
- Prices within the theme or sub-theme have started to plateau or fall
- A new updated version of the set is released
- The theme or sub-theme is reducing in popularity
- You think there is a set you could buy with the proceeds that would be a better investment
I’ve decided to sell my LEGO® set, what is the best way
There are many ways to sell sets:
- Ask around friends, fellow LEGO® collectors/investors to see if any are looking to buy the set
- Post on LEGO® forums, Facebook groups etc
- Sell on the secondary market; eBay, Facebook marketplace or Bricklink
- Be patient, especially if it’s a rarer, expensive set
- Again, update your portfolio once you’ve sold
Now you’ve sold your set, hopefully for a healthy profit, its time to go back to the start and reinvest in another set or sets!!