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Old 07-18-2006, 12:28 PM
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Default Collecting vs Investing

Posted By: davidcycleback

Smart investing requires great knowledge of the product. This is a knowledge that many collectors have and many investors do not.

If a baseball card collector decided that it's not aesthetic to invest in cards, so she put her money into individual stocks-- it's likely that she will know less about the companies she is investing in than she does about baseball cards.

I'm a collector and a reseller (not an investor, as it isn't my intent to hold onto an item for a long time). The items that I collect and the items I sell are usually in different areas. However, I will sell items I collect, if I have a duplicate or am not fond of the item. For me, the prime concern for both items I buy and sell is authenticity. For example, I don't sell Ming vases or Louis Vuitton handbags as I'm ignorant about authenticating either.

Handling items you don't collect is worthwhile, as you learn about material you would oridinarilly consider. Learning about new things is in and of itself a hobby.

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