Another card investment thread

[frankbmd]

Originally Posted by Peter_Spaeth

You will get as many answers as there are posters. Which I am sure will be helpful.

Originally Posted by barrysloate

So people now want to invest in baseball cards without being card collectors and without any knowledge of what they should buy. Does that concern anyone?

Years ago I always went to the barber shop to get investment advice, but since I now have no hair, I’m stuck with Net54.

[Peter_Spaeth]

Originally Posted by frankbmd

Years ago I always went to the barber shop to get investment advice, but since I now have no hair, I’m stuck with Net54.

I hope you followed the sage advice not long ago to buy bitcoin.

[Leon]

Originally Posted by frankbmd

Years ago I always went to the barber shop to get investment advice, but since I now have no hair, I’m stuck with Net54.

LOL

And Barry, I don't personally care if people want to invest in cards without knowing or even liking them. It's American and I have a laissez-faire attitude.

[barrysloate]

Originally Posted by Leon

LOL

And Barry, I don't personally care if people want to invest in cards without knowing or even liking them. It's American and I have a laissez-faire attitude.

That's perfectly fine, but my point was that if investors who don't collect are buying cards to sell to other investors who don't collect, that's not the bedrock for a solid market. People are of course free to do whatever they want, I'm just suggesting that it's the real long term collectors who make the hobby what it is. Speculators on the other hand create the bubble economy. You're confusing what we are free to do versus what is prudent to do.

[toledo_mudhen]

Originally Posted by frankbmd

Years ago I always went to the barber shop to get investment advice, but since I now have no hair, I’m stuck with Net54.

When I was a kid - the Barber Shop had a Pristine example of a Jackalope mounted on the wall. Such a rare creature - Haven't seen another one since.

[buymycards]

Yelich

[Republicaninmass]

Unlike coins, which have an intrinsic value, Stocks (without dividends) only carry a perceived value, similar to cards. They are only worth what someone will pay, and are subject to a catalysts within and outside if their respective marketplace.

In this regard, cards are are a similar "investment vehicle" to (non-dividend) stocks.

[joshuanip]

Originally Posted by Republicaninmass

Unlike coins, which have an intrinsic value, Stocks (without dividends) only carry a perceived value, similar to cards. They are only worth what someone will pay, and are subject to a catalysts within and outside if their respective marketplace.

In this regard, cards are are a similar "investment vehicle" to (non-dividend) stocks.

I respectfully disagree on these points. Everything is “perceived”.

Coins intrinsic value is limited to face value which is nominal. Anything above is collectible value, same as baseball cards but without the attachment to history.

Stocks without dividends are valued based on its growth rate of future free cash flows (augmented by one time tax cuts, unsustainable accommodative central banks, and admittedly a strong economy) discounted by a historically low Goldilocks discount rate, and impacted by smoke and mirrors stock buybacks and positive headline risk fomo.

Cards are impacted by general asset (re)valuation, employment, and people’s liquidity requirements as it impacts short term supply and demand.

They all have different coefficients, but would suspect coins and cards have higher correlation and r squared than cards and stocks.

[Throttlesteer]

Beanie babies are making a comeback. Invest now! Especially those with a sick patch

[Republicaninmass]

Intrinsic - belonging naturally; essential. ie face value, even melt value


Stocks - you don't even own a piece of paper anymore. What does future cash flow, or this "value" growth rate you speak of, allow you to spend? it's only worth what someone will pay at a given time based on what they think it will be worth.

edited: and each there is someone selling a stock convinced it will go down, to someone convinced it will go up. This happens with cards sometimes

[Econteachert205]

I do believe that there will continue to be price appreciation in the best such as Jordan or Mantle rookies. Beyond that, though, long term I believe many bad investments abound. How many millennial or gen z kids exist that will shell out hundreds or thousands for high grade commons? What about middling hof rookie cards, tough or not. There may always be a hard core few who need a Kiki cuyler auto rookie but if I were holding these types of “investments” I would not feel any more secure than the speculative equivalent in any other market.

The card I bought as an investment that I worry about the least is my 86 fleer Jordan. Remember the best investments are those which appreciate quickest after purchasing. For me it is that card.

[joshuanip]

Originally Posted by Republicaninmass

Intrinsic - belonging naturally; essential. ie face value, even melt value


Stocks - you don't even own a piece of paper anymore. What does future cash flow, or this "value" growth rate you speak of, allow you to spend? it's only worth what someone will pay at a given time based on what they think it will be worth.

edited: and each there is someone selling a stock convinced it will go down, to someone convinced it will go up. This happens with cards sometimes

Don’t mean to hijack the thread to stocks but growth (no dividends) is particularly (over) valued in low rate environments because it’s the compound affect of discounting that future growth is muted.

Hence value without any dividends (spending $). Add demand from stock buybacks and lack of options being us (market) is the best house in a bad neighborhood and the reduction Of publicly availble stocks from pe buyouts, and you have a meltup

[Peter_Spaeth]

Originally Posted by buymycards

Yelich

Location: Wisconsin

Biased!!

[Bicem]

Well said Joshua.