Posted By:
bruce Dorskind
The Only Thing To Fear Is Fear Itself
Whilst predicting future returns on investment is pure speculation, we would like
to make several observations to refute some of the commentary with regard
to the card market
1. Mr Chao, whilst free with his commentary, apparently has no understanding whatsoever
of the breadth and scope of the hedge fund market. There are nearly 10,000 hedge
funds with a plethora of different strategies. A number of funds are invested in very
niche markets. Not all funds require immediate liquidity. A number of billion dollar
plus funds have two and three year lock up periods.
2. Mr. Copeland spent a considerable sum of money on baseball cards in a short period
of time. Although he was a very successful Sporting Goods retailer, he was not particularly
savvy with regard to his baseball card investment. He limited his purchases to five dealers.
He bought an incredible range of different items and his purchase price had nothing to
do with the rest of the market.
Furthermore at the time Copeland built his collection (we spoke numerous times), far less
price and market information was available and the Internet was still on Al Gore's drawing
board.
Someone who entered the market today, would have to spend at least 10X what Copeland
spent to have any impact whatsoever on the market
3. If and when a Hedge Fund decided to invest in baseball cards, they could buy all the
knowledge they need. The prospect of a billion dollar plus fund, spending $25 million
based on instinct and a few calls to leading auction houses, is laughable at best.
On two occasions we have been retained as expert consultants to major hedge funds.
Our remuneration was never an issue...investing in expertise is part and parcel of
the due diligence process. Those who think otherwise sound childlike, at best.
4. It is impossible to predict what today's young boys and girls will collect in 20 years.
Everyone thought the coin market was just for old folks, then, led by Harvey Stack, the
"State Quarter Program" was introduced and 70 million people now collect coins
5. While the average Board Member maybe a "early stage" Baby Boomer, the Board, whilst
distinguished in some ways represents well less than 2% of the total expenditure on baseball
cards in America. If anyone has any doubts on this issue ask Bill Mastro and Rob Lifson
what percentage of their total sales from the last 10 auctions came from active Network 54
participants.
It is all well and good to have an open debate and to give thought about the future direction
of rare card collecting and its investment potential. It is our hope, however, that some of
the posters who appear to be afraid of a major money market investor do their homework
before posting.
Bruce Dorskind
America's Toughest Want List