Quote:
Originally Posted by EddieP
Interesting. I’m far from being an expert in this but it appears that this card is mimicking a T-Bill @ ~ 3.0 to 3.5% interest ( with the interest that you would otherwise earn in cash being factored into the price of the card).
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I am not sure what other investments the “return” can be compared to, but I do recognize that it is hardly a home run (going back to 2006) and that there are likely many other, more profitable investments. With cards, I am not going for the home run. Instead, I am going for preservation and safe growth; total bonus that I love cards, I get to hold and show the investment, and get to buy things I think are cool.
For me, the role that cards play is a slow and steady protector and grower of wealth that happens to be really fun and cool. This is why I collect/buy what I do - old and rare items of blue chip HOFers. And, even with this game plan, I sometimes hit home runs, which adds a little “alpha” to an otherwise safe allocation; I also miss sometimes on items but never huge.
If I wanted to day trade, I would buy the shinny stuff. If I wanted a higher return, then I would put my card money elsewhere or maybe into other cards. So, when I see a 15 year history of value increase on a rare Ty Cobb card, I hit the buy button.