Why Investing in LEGO is Better than Stocks, Bonds, and Gold
Shane O’Farrell, a 35-year-old from New Jersey, has discovered that investing in LEGO can be more profitable than investing in stocks, bonds, or even gold. Over the last two years, O’Farrell has made an impressive $500,000 by buying and selling LEGO sets.
A Nostalgic Beginning
O’Farrell’s journey started with a desire to reconnect with his childhood. One of his favorite toys was the Fort Legoredo set. When he found out that this set was selling for hundreds of dollars more than its original 1996 price of $85, he saw a great investment opportunity.
A Lucrative Market
O’Farrell quickly dived into the market of buying and flipping coveted LEGO sets online. The Fort Legoredo set he loved as a child now sells for $2,405.
According to a 2022 study, LEGO’s resale value has been growing by 11% annually, outpacing stocks, bonds, and gold.
Minimal Time Investment with High Returns
For O’Farrell, the time it takes to buy and sell LEGO sets is very minimal. He is able to do it on top of his full-time job, creating a supplementary income.
“You’re talking about a 400% return on investment in a year and a half’s time,” he stated.
Sharing His Knowledge
O’Farrell is so enthusiastic about his part-time gig that he shares investment tips on his YouTube channel, Brick Bucks.
He explains that what’s needed is a standard-sized storage unit for inventory and a sharp set of eyes monitoring the companies. O’Farrell stays updated by reading LEGO’s annual financial and trend reports and keeping tabs on when sets are being retired.
Scarcity is Key
One important aspect of investing in LEGO is knowing when a set is being retired; this is often when the resale value goes up. For example, the LEGO “Star Wars” TIE Fighter Pilot helmet model, which was $60 before being retired in 2021, now sells for $350.
The Market for Minifigures
There’s also a strong market for the minifigures that come with LEGO sets. Some minifigures from the LEGO Barad-dûr set from “Lord of the Rings” were being sold for $250 each.
Easy to Manage
Flipping LEGO sets can be easy since their value tends to go up over time. O’Farrell suggests that one could simply buy sets, store them safely, and wait for their value to increase.
Another seller, known as DG Bricks on YouTube, compares it to “running a wine cellar.” He stores products safely, waiting for future customers and higher prices.
A Market for Young Investors
LEGO investing can be a great option for young investors who have plenty of time but might lack significant capital.
“For a young person like me, I have an abundance of time on my hands, but what I lack is significant capital,” said DG Bricks.
An Ideal Time to Invest
As the world's most valuable toy brand, more people now are investing in LEGO. Jonny Cangemi, a 26-year-old fintech worker, is one such example. He has been an avid LEGO builder since childhood and sees his LEGO “Star Wars” Grogu set as a future investment that he plans to flip for a profit in five years.
Conclusion
Investing in LEGO isn’t just a nostalgic trip down memory lane—it’s a lucrative market that offers potential high returns with minimal time investment. Whether you’re a young investor or someone looking for a side gig, the LEGO market is worth considering.
